Stanbic injects US$237m into mining sector

LIVINGSTONE MARUFU

Financial services provider Stanbic Bank Zimbabwe has channelled US$237m in loan facilities into the country’s mining sector, it has been learnt.

The funding commitment was revealed by Stanbic Bank chief executive Solomon Nyanhongo during the Chamber of Mines of Zimbabwe (CoMZ) 2026 annual conference held in Victoria Falls last week.

“In the national development of Zimbabwe, Stanbic Bank arranged facilities totalling US$237m for the mining sector in 2025. This investment demonstrates our commitment to the mining industry and its associated value chains in Zimbabwe,” Nyanhongo said.

He said the bank’s support extends beyond providing capital to offering advisory services aimed at helping both large-scale and small-scale miners expand their operations.

“Our contribution to the mining sector goes beyond capital raising. It includes advisory services that enable both large and small operators to grow,” he said.

“We actively facilitate key industry engagements with policymakers and pursue initiatives that help the sector grow. As your partners for growth, we are here to support you as you navigate the challenges facing the industry.”

Nyanhongo said Stanbic works closely with mining companies to ensure that working capital requirements and long-term capital needs are adequately catered for.

The bank disclosed that it currently commands more than 30% of the mining finance market in Zimbabwe.

“We remain committed to assisting the mining sector through sustainable financial solutions and by strengthening strategic partnerships to ensure continued growth of both the industry and the wider economy,” he said.

According to Nyanhongo, Stanbic’s focus goes beyond mining operations themselves to encompass the broader ecosystem and value chains that sustain the sector.

“We seek to understand the entire mining ecosystem. What is important is ensuring support for critical stakeholders, suppliers and employees who are part of the value chain,” he said.

The mining industry is gradually recovering, supported by improving prices for key minerals such as platinum and lithium.

Zimbabwe is targeting more than US$7bn in mineral export earnings this year, up from approximately US$6.5bn, with gold output expected to generate US$5bn in export receipts.

However, outgoing Chamber of Mines president John Musekiwa warned that significant headwinds continue to weigh on the sector despite the rebound in commodity prices.

“Many operations are facing foreign currency shortfalls to meet their operational requirements,” Musekiwa said.

“The economy has witnessed increased usage of the US dollar, putting pressure on available retained export earnings.”

He said the industry’s funding gap remains substantial, with many mining houses failing to secure offshore financing and instead relying heavily on internally generated resources.

“With retention at 70% and delayed payments, working capital has remained constrained. This has resulted in the deferment of capital projects, with negative implications for the long-term growth of the mining industry,” Musekiwa noted.

He added that royalties on platinum, diamond and lithium remain high, increasing production costs and negatively affecting the viability of mining projects.

Despite these challenges, Nyanhongo said Stanbic is able to leverage the strength of its international network and shareholders to mobilise capital for the sector.

Stanbic is a subsidiary of the Standard Bank Group, which has pledged to play a key role in supporting Zimbabwe’s economic development.

“The advantage of Stanbic Bank lies in its connection with Standard Bank South Africa, the largest banking group in Africa,” Nyanhongo said.

“The group has operations in 21 countries and maintains a presence in major global financial centres including London, New York, Beijing, Mauritius and Dubai. These strategic hubs connect Zimbabwe to the rest of the world.”

He added that Standard Bank Group’s association with China’s ICBC, the world’s largest banking group, enhances Stanbic’s ability to attract international capital into Zimbabwe.

“This relationship and our global footprint enable us to connect the local mining sector with the rest of the world, raise standards and serve as an important bridge for mobilising global capital into Zimbabwe,” Nyanhongo said.