The Sunday News
Judith Phiri, Business Reporter
BOTSWANA-headquartered investment firm, Norsad Capital has channeled a US$10 million medium-term credit facility to support Central Africa Building Society (CABS) Zimbabwe’s growth strategy.
The facility is earmarked towards lending to CABS’ export clients, particularly in the agricultural sector.
In a statement, Norsad Capital investment director and transaction lead, Ms Carol-Jean Harward said: “This investment aligns with Norsad’s sectoral theme of Financial Institutions as well as the impact focus on financial inclusion and sustainable livelihoods.”
She said the transaction will capacitate the exporting industry by providing working capital and capital expenditure facilities to sectors in agriculture and manufacturing.
“We are excited to partner with CABS as it plays a catalytic role in unlocking opportunities to enable local farmers and SMEs to export both regionally and internationally.”
CABS deputy managing director, Mr Cecil Ndoro said the funding will help capacitate the exporting industries.
“Norsad’s funding will help strengthen CABS’ balance sheet by providing medium-term funding as well as capacitating the exporting industries by providing working capital and capital expenditure facilities, thus boosting the country’s foreign currency earnings,” said Mr Ndoro.
“As CABS, we will deploy the funds to the productive export sectors, notably agriculture, manufacturing, mining, and tourism. The focus will be on generation of foreign currency, creation of employment and value chain financing for the benefit of industry players and the economy at large.”
He said the investment will promote entrepreneurship, enable growth and improve livelihoods.
Norsad Capital is an impact investor and private creditor provider, offering tailor-made debt solutions to mid-market growth companies in Sub-Saharan Africa.
With a track record spanning over 32 years, Norsad Capital has invested over US$ 500 million in more than 150 companies across the continent.
While, CABS is one of the top three banks in Zimbabwe and was 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.
CABS 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.
The agricultural sector is key to Zimbabwe’s economy for domestic production, exports, and employment; hence, Norsad’s facility supports sustainable livelihoods and builds a better Africa by impacting lives.