CABS renews US$40m facility to support the Zimbabwe economy

The Central Africa Building Society (CABS), a member of Old Mutual Zimbabwe, has reaffirmed its commitment to driving economic development and social impact across Zimbabwe, following the release of its financial results for the year ended December 31, 2024.

In a comprehensive statement, CABS Managing Director Mr Mehluli Mpofu highlighted the institution's strategic deployment of capital into productive sectors including agriculture, mining, and infrastructure development, contributing to employment creation, increased fiscal revenues, and enhanced food security.

"In support of making funding available to propel growth in the country, CABS renewed its US$40 million facility with Afreximbank and increased its facility with the Trade and Development Bank to US$50 million," said Mpofu.
"The deployment of this funding into the productive sectors of the economy resulted in employment creation, an increase in the tax base, and enhanced food security for families."

CABS also facilitated tailor-made trade finance facilities, enabling clients to import materials and capital equipment critical for industrial operations, thereby enhancing trade and productivity.

Beyond its financial role, CABS remained an active champion of corporate social responsibility (CSR), anchoring its efforts around education, healthcare, environmental sustainability, sports, the arts, and financial literacy.
Bold Health Initiatives

In 2024, CABS launched targeted initiatives in the fight against cancer, focusing on breast, childhood, prostate, and testicular cancers. The bank supported nationwide awareness campaigns and donated chemotherapy drugs, reinforcing access to early detection and treatment.

"Through these efforts, CABS not only provided tangible support to patients but also fostered a culture of proactive healthcare within communities," said Mpofu.

Green Commitment Recognised

CABS also advanced its environmental sustainability goals through tree-planting and reforestation efforts, partnering with key stakeholders to combat deforestation. These green initiatives culminated in CABS receiving the prestigious Environmental, Social, and Governance (ESG) Award for Inclusive Development of SDGs at the Zimbabwe National ESG and CSR Achievement Awards in December 2024.

"This dedication to sustainability was recognised... reinforcing our commitment to a greener future," said Mpofu.

Embracing Digital and USD Channels

On the digital front, CABS expanded its service offerings by introducing USD account transacting capabilities to its digital platforms, meeting increasing customer demand for convenience and foreign currency functionality.

Digital lending products such as EezyCredit and FlexiCredit also gained traction, contributing to enhanced credit access for customers.
Financial Highlights

Despite robust strategic activities, CABS reported a 54.8% decline in surplus to ZiG822.23 million, attributed mainly to the change in functional currency from local currency to USD. This shift triggered exchange gains and fair value losses on investment properties, impacting bottom-line performance.

Nevertheless, Mpofu said the institution's core financial performance remained satisfactory, with non-funded income growing, driven by payment transaction volumes and foreign currency translation gains.

"We continued to support the borrowing requirements of our customers through a combination of local funding and offshore lines of credit," he added.

As CABS looks to the future, its integrated approach to finance, social impact, and sustainability positions it as a key partner in Zimbabwe's development agenda, aligned with national goals under Vision 2030.