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Molline Gagare Business Reporter
REGIONAL banking group ABC Holdings’ BancABC Zimbabwe subsidiary has availed $5 million for on-lending to small to medium enterprises (SMEs) and co-operatives for financing their medium to long term projects.The Africa Development Bank facilitated a total of $50 million to be utilised by BancABC in its Zimbabwe, Botswana and Mozambique subsidiaries, the group’s audited financial report for the year ended December 31, 2014, indicates.

Botswana got $30 million, Mozambique $15 million and Zimbabwe $5 million.

The group says it plans to raise further lines of credit during the current year.

The funds will be used principally for business expansion and also to lengthen the duration of the funding base.

BancABC has pledged to expand its businesses across the country even though market conditions in Zimbabwe are a bit tight.

“We’re committed to growing our businesses across the footprint. Market conditions in Zimbabwe may, however, mean that we’ll only grow cautiously in that market for the time being”.

ABCH has been able to close fund raising transactions with various banks during the fourth quarter of 2014 and first quarter of 2015.

“During the Q4-14 and Q1-15, the group has been able to close fund-raising transactions with European Investment Bank (EIB), African Development   Bank (AfDB) and World Business Capital (WBC),” it said.

BancABC Zimbabwe posted an attributable loss of BWP3 million compared to an attributable profit of BWP 118 million in the prior year, according to the report.

The group cited difficult operating conditions and high loan impairments for the loss in the year.

“The tough operating environment resulted in high loan impairments, which singularly contributed to the posting of the loss in the current year,” it said.
The group also said the coming on board of Atlas Mara Limited, which has injected $100 million liquidity support, as new share holder has set the tone for increased growth.

“We plan to be more relevant to our stakeholders by improving our delivery channels through increased use of technology and by offering more competitive products to become a bank of choice in all customer segments,” said the group.