ZB Bank sets aside $20m towards funding farmers

ONE of the country’s leading financial institutions, ZB Bank has set aside $20 million for the funding of farmers in the 2017/18 farming season, an official said.

ZB bank head group corporate services, Mr Shadowsight Chiganze said the financial institution was one of the biggest funders of agriculture in the country and has set sights on funding a number of farming activities this season as it has done in previous seasons.

“Our focus is not on particular crops, but on viability. For the 2017/18 farming season our funding budget is $20 million. The major crops to be funded include tobacco, maize, soya beans, sugarcane and horticulture. For one to qualify to access the funds the enterprise must demonstrate viability in terms of markets, technology and management among other things,” Mr Chiganze said.

He said the financial institution’s loan facility would be accessed by farmers who would have exhibited the ability of running their enterprises viable.

“We prefer to lend to farmers who demonstrate know-how and commitment to their business. We do this through a combination of loans to individual farmers and loans to contractors and agro-processors who in turn on-lend the same funds to farmers,” said Mr Chiganze.

He said ZB Bank’s agent banking network continues to grow and plays an integral role towards increasing the financial institution’s clientele base.

“We were the first bank to develop and introduce this business model (agent banking network) and we currently have the biggest agency network in the country-15 000, which is by far the largest of any bank in Zimbabwe . . .

“Through this network of agents we have been able to offer banking services to our customers close to where they are. They have also been able to assist us to acquire customers as they are able to sell our products,” said Mr Chiganze.

Agent banking allows traditional financial service providers to expand their presence through agents, in the form of existing retail service providers or new sign-ups.

Agent banks provide a number of traditional banking services such as deposits and withdrawals, preliminary account registration, balance enquiries and even transfers.

The model relies on limited hardware for these services which is supported by a connection to the bank’s network. Mr Chiganze said following the removal of the bank from the United States imposed sanctions list last year, it has managed to re-open relationships with foreign correspondent banks in Europe and other financial institutions in other parts of the world.

“Since being removed from sanctions, we are now able to facilitate international transfers into and out of the country. We are also in the process of introducing remittance products through which our customers will be able to receive funds from friends and relatives living abroad as well as remit funds to them. Several other products including international cards are currently in the pipeline. We will also be shortly unveiling international lines of credit to support our exporting customers,” he said.