Tinashe Makichi Business Reporter
CBZ Holdings has set its sights on funding infrastructure projects after recently winning a tender to raise $2 billion to go towards development of accommodation facilities for tertiary institutions.The financial services group has been instrumental in the infrastructure development sector which has seen the financial institution investing heavily in housing development.
On this initiative the group will source $2 billion on behalf of the Government. CBZ Holdings chief executive Mr Never Nyemudzo told the media on the sidelines of the SME’s International Indaba in Bulawayo last week that the financial institution has plans to start funding of infrastructure projects.
“As CBZ our desire to fund infrastructure projects is unquestionable and going forward we would be active in infrastructure development. We recently won a tender to raise $2 billion for the construction of academic accommodation for tertiary institutions.
“We have already started the feasibility study for the tertiary institution accommodation development initiative. Going forward we want to participate expansively in infrastructure development,” said Mr Nyemudzo.
He said CBZ Holdings is also looking at moving into money markets to entice investors and offer longer term funding. Mr Nyemudzo said this is one of the options that the group is pursuing. He said there are also other opportunities elsewhere where the bank can invest in Treasury Bills, money markets and trading.
“We are holding on to TBs, as we have noticed that movement on interest rates per annum are skewing lower, which will allow us to offer longer term funding. We have other sources of income so the issue to sell them (TBs) is of no use to me so I will hold onto TBs until they mature. This is how we are capacitating ourselves. We need significant muscle to be able to generate more money,” said Mr Nyemudzo.
“With TBs, we are using them for long-term funding. So when you look at the overall picture, it now addresses the liquidity gap,” said Mr Nyemudzo.
He said the financial institution will not look for further lines of credit at the moment on the back of softening lending rates on the local market.
The Reserve Bank of Zimbabwe has capped interest rates at 12 percent per annum from 18 percent and further reduced bank charges in a bid to enhance financial sector stability and stimulate production across various sectors of the economy.