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Nelson Gahadza

Senior Business Reporter

First Capital Bank (FCB) has commenced construction of a new head office in Borrowdale, Harare, targeted for completion within a year’s time, demonstrating the bank’s long-term commitment to Zimbabwe.

Acting Reserve Bank of Zimbabwe (RBZ) governor Dr Jesimen Chipika said at the ground-breaking ceremony last Friday that the new building represents long-term confidence in the Zimbabwe market.

“It is a sign that they are here to stay and are confident in the economic recovery of Zimbabwe, and we are ready to partner with our banks to support development in the economy,” she said.

She added that in terms of modernising the economy, the banks are critical because they are the intermediaries who link the financial resources to the development path of the country.

“We have always insisted the bank is not always there just for them to make profits, but there to support development in the jurisdiction they operate,” said Dr Chipika.

The project, according to the chief executive officer, Mr Tapera Mushoriwa, will be financed from internal resources as the bank has a cash flow plan in place.

‘We are firmly digging our roots in Zimbabwe and have confidence in its economic potential. We are committed to leveraging our regional capabilities to realize mutual growth prospects for all our key stakeholders,” he said.

He added that the modern and environmentally friendly building also presents an opportunity to provide a world-class working environment for staff who are instrumental in driving the business.

FCB became the first bank to list on the US dollar-denominated Victoria Falls Stock Exchange (VFEX), a move that is set to unlock foreign investment opportunities and long-term shareholder value.

During the half-year period to June 30, 2023, the bank reported a profit after tax of US$4.3 million, which represented a 232 percent rise from the 2022 comparative.

Rising income was supported by a 23 percent growth in net fees and commissions to US$11,5 million, which the group attributed to several initiatives to increase USD transaction services for customers.

The group also expanded to offer vehicle insurance and licensing services to its customers. As a result, net interest income increased by 35 percent to US$11,6 million, while other income declined by 14 percent to US$9 million.

In addition to the EUR12,5 million in foreign lines of credit from the European Investment Bank, FCB secured US$20 million through Afreximbank.

“This demonstrates the trust partners have in our organization,” said FCB’s chairman, Mr Patrick Devenish.

He said the Zimbabwe business is an integral contributor to the group’s bottom line and believes in the nation’s potential and prospects, which are anchored by its vast resources, human capacity, and expertise.

“This belief has culminated in our investment being witnessed here today. We will continue to leverage opportunities to collaborate and participate in key developmental projects that are important to the economy,” he said.

He said the bank will continue to offer relevant financial solutions to the local market through its digital capabilities, knowledgeable workforce, and vast branch network across the country.

FCB Zimbabwe is part of FMBcapital Holdings, whose other banking operations are in Botswana, Malawi, Mozambique, and Zambia.

FMBcapital has a total asset base of over US$1,5 billion and has over 500 000 customers across Africa.