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Business Writer

STANBIC Bank Zimbabwe has reaffirmed its commitment to supporting the telecommunications industry and fostering close collaboration towards unlocking more economic opportunities.

The financial services institution made the commitment at a recent breakfast meeting attended by key players in the telecommunications sector in Harare.

The event brought together various telecommunications companies, and underscored the bank’s focus on driving growth and innovation within the digital industry.

In his welcome remarks, Stanbic Bank board chairperson Mucha Mkanganwi expressed deep appreciation for the telecommunication industry, commending it for its vital role in enabling businesses to foster innovation and expand their reach, as well as driving information democracy while connecting the world globally.

Mkanganwi said the Standard Bank Group subsidiary leverages its presence in 20 countries across Africa to build collaborative and strategic alliances that fortify its position as a trusted financial partner for the telecommunications industry.

“We understand the pivotal role telecommunications plays in driving economic growth, digital transformation, and connecting communities hence we are committed to support this sector as much as we can,” said Mkanganwi.

He said this commitment was driven by Standard Bank Group’s thrust to prop up Africa’s growth through its presence in various countries.

To that end Stanbic bank views Zimbabwe as its home and is committed to driving its growth and the telecommunications sector as one such platform to achieve this.

Stanbic Bank telecommunications sector specialist, Vongai Mhazo, said the institution realised that there is need to establish collaborations with Fintechs given that they operate in different frontiers.

“Fintechs are critical part of our value chain, and we will continue to partner them to deliver value to our clients.”

She highlighted that the bank offers a comprehensive suite of financial products and services, including Escrow account management, Letters of Credit, ECIC (Export Credit Insurance Corporation) funded structures, and asset-backed funding, to support companies within this sector.

Mhazo emphasised that Stanbic Bank Zimbabwe is dedicated to providing tailored financial solutions that empower telecommunications companies.

She said among its products is also the Africa China Trade Solutions (ACTS) through which Stanbic Bank has built a trustworthy bridge between its clients who want to import products from China and suppliers in the Asian country.

“Stanbic Bank Zimbabwe remains committed to ensuring the telecommunications industry has access to the financial support needed to invest in infrastructure, facilitate cross-border transactions, and expand their services,” said Mhazo.

She said as Zimbabwe continues to enhance its digital infrastructure, Stanbic Bank Zimbabwe stands ready to support the sector’s growth, reinforcing its role as a key enabler of connectivity and prosperity in the country.

With Zimbabwe being largely a cash-based economy, the telecoms sector provides opportunities for shifting transactability to mobile electronic payments.

The innovative products being provided by telecoms companies have significantly promoted Financial Inclusion. During Covid-19 era, the sector played a significant role in education and health service delivery.

The telecoms sector growth has averaged 12.7 percent per year during the period (2021-4) compared to an average GDP growth of 5.5 percent.

Growth is driven by urbanisation; rising adoption of 3G, 4G, 5G services; growing population.