In a move signaling a firm commitment to Zimbabwe's economic revival, financial services giant CBZ Holdings has revealed a more than 100% surge in its mining sector loan book, reaching 18% of its total portfolio. Phibeon Mutibura, CBZ Holdings executive director, underscored the bank's unwavering support for the industry's growth at the recent Chamber of Mines of Zimbabwe 2024 annual conference held in Victoria Falls.

"We understand the unique challenges of the mining sector," Mutibura remarked, "and we believe that responsibly harnessing our mineral wealth can uplift entire communities." This philosophy, he explained, translates into "a wide range of stellar financial solutions" designed specifically for the mining industry and its intricate value chains.

The exponential growth in CBZ's mining loan book—ballooning from 7% in 2021—serves as a testament to this dedication. But the bank's ambitions extend far beyond simply extending credit. Recognising the need for financial inclusion, CBZ has introduced a pioneering value chain and local enterprise development (LED) financial solution.

This innovative program leverages non-traditional lending methods to empower local suppliers within the mining industry. "The core principle of LED," explained Mutibura, "is fostering commercial partnerships between SMEs, suppliers, and the mining companies themselves. At CBZ, we're ensuring no one gets left behind."

CBZ has established strategic alliances with leading mining houses and their suppliers. "We've made significant progress in facilitating these linkages," said Mutibura, "and we're actively engaging other players through memoranda of understanding under our Enterprise Supplier Development (ESD) financing structure."

The ESD program specifically targets SMEs that are established, regular suppliers to selected mines. These partnerships are solidified through tripartite memoranda of understanding between the bank, the mine, and the supplier. This ingenious solution unlocks much-needed capital for small and medium enterprises, allowing them to expand production capacity and compete more effectively.

Traditionally, limited access to finance has hampered the growth of SMEs. "Inadequate collateral, lack of financial records, or poor credit history" are hurdles ESD aims to overcome, according to Mutibura. "This promotes financial inclusion," he emphasised. "By empowering suppliers, Zimbabwean mines can ensure timely payments, eliminate disruptions in the supply chain, and ultimately enhance overall efficiency."

The benefits extend far beyond just financial empowerment. ESD fosters a ripple effect, creating local jobs, improving livelihoods in communities, and promoting import substitution, thereby saving the country valuable foreign currency. CBZ's commitment to the mining sector is not merely financial; it's a strategic investment in the future of Zimbabwe.