Zimpapers Logo

Business Reporter

First Capital Bank (FCB) Zimbabwe says it continues to scout for new lines of credit and is currently negotiating for new facilities with the European Investment Bank (EIB) to bolster its capacity to support the country’s productive sectors.

This also comes after the bank commenced the construction of its new head office in Borrowdale, Harare, targeted for completion within a year’s time, demonstrating the bank’s long-term commitment to Zimbabwe.

Chief executive Mr Tapiwa Mushoriwa said appetite for its credit lines has been encouraging and he hopes to get new facilities to support exporters.

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

“This demonstrates the trust partners have in our organisation; therefore, we will continue engaging in order to raise new funding facilities,” he said in an interview recently.

According to Mr Mushoriwa, financing the productive sectors of the economy continues to be a major priority for the Bank.

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

FCB’s chairman, Mr Patrick Devenish, recently 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.

However, according to Mr Mushoriwa, the banking industry is aligning with new standards; hence, the bank continues to innovate and meet customer needs.

“We will continue to innovate new financing models and support economic growth through sustainable financing,” he said.

FCB became the first bank to migrate to the US dollar-denominated stock exchange, Victoria Falls Stock Exchange (VFEX), to position the bank for extended options for capital raising in foreign currency.

“We are increasing our focus on foreign currency-denominated businesses supported by our own deposits, lines of credit, and offshore facilities, targeting lines of credit of US$90 million from four offshore funders,” the bank said earlier in the year.

FCB, in partnership with the European Investment Bank, has been supporting investment projects undertaken by small to medium enterprises (SMEs) and mid-cap companies.

The funding opportunity aims to accelerate economic growth in pertinent industries through employment creation, commerce upliftment, and the promotion of environmentally responsible businesses for organisations that meet the qualifying criteria.

FCB reported a half-year to June 2023 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. Net interest income increased by 35 percent to US$11,6 million, while other income declined by 14 percent to US$9 million.