By Alois Vinga
BOTSWANA headquartered investment firm, Norsad Capital, offering tailor-made debt solutions to mid-market growth companies in Sub-Saharan Africa has injected US$10 million CABS Zimbabwe for onward lending to export clients particularly in the agricultural sector.
The development comes at a juncture when the Southern Africa nation is working flat out to revamp exports in a bid to generate foreign currency , create jobs and grow the economy with obtaining macro-economic and exchange rate stability being the guiding principles.
Speaking on the development, CABS deputy managing director, Cecil Ndoro lauded the facility saying it will go a long way to support the bank’s medium term financing lines.
“Norsad’s funding will help strengthen CABS’ balance sheet by providing medium-term funding as well as capacitating the exporting industries by providing working capital and capital expenditure facilities, thus boosting the country’s foreign currency earnings.
“As CABS, we will deploy the funds to the productive export sectors, notably agriculture, manufacturing, mining, and tourism,” he said.
Ndoro said the focus will be on generation of foreign currency, creation of employment and value chain financing for the benefit of industry players and the economy at large, promoting entrepreneurship, enabling growth and improving livelihoods.”
Norsad Capital investment director, Carol-Jean Harward said the facility will provide working capital among other functions in the agricultural sector.
“The transaction will capacitate the exporting industry by providing working capital and capital expenditure facilities to sectors in agriculture and manufacturing. We are excited to partner with CABS as it plays a catalytic role in unlocking opportunities to enable local farmers and SMEs to export both regionally and internationally,” he said.
CABS is one of the top three banks in Zimbabwe established as a building society in 1949 before being granted approval by the Reserve Bank of Zimbabwe (RBZ) in 2011 to engage in full commercial banking operations.
It has 38 operational branches, over 900 Agents, and the largest Point of Sales machine network of about 25,000 countrywide.
This adds to its digital banking offering which includes Mobile, Internet, and WhatsApp Banking.