Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has expressed commitment to continue supporting the county’s productive sectors through a broad based strategy which guarantees the country’s return to an economic growth path.
Addressing delegates at the Zimbabwe National Chamber of Commerce (ZNCC) Business Review Conference Thursday, Mangudya said local banks have played a pivotal role in supporting the key productive sectors of the economy.
He said for instance, farmers have been able to access loans securitised by movable properties — agricultural equipment (48%), household goods (16%), notarial general covering bonds (13%), and livestock (5%).
“A total of 42 security interest notices with a total amount of ZWL$130 89 billion have been registered under SMEs
The banks continue to support productive sectors of the economy. Agriculture at 17,7%, manufacturing at 13,82%, mining at 11,74%, and distribution at 13,30% dominate total lending in line with supporting productive sectors,
The loan-to-deposit ratio has been trending upwards from values below 40% in January 2021 to over 55% in August 2023.
The manufacturing and distribution sectors’ loan-to-deposit ratios have surpassed the average for the entire economy.
On its part, the RBZ Foreign Exchange Auction platform remains the largest source of foreign currency for companies and individuals having made weekly disbursements tilted towards supporting machinery equipment
Since inception in June 2020, the Auction platform had allotted a total US$3,7 billion to local companies as at December 31 2022.
Over and above the foreign currency allotments and credit infrastructure, the stability focused measures employed by the bank have gone some way in creating a conducive environment for business.
