This comes as the country’s biggest bank, by deposits, has experienced a lower non-performing loans ratio among the SME sector, which has managed to yield impressive results in terms of return.
“So far we have disbursed $100 million towards the SMEs and our target for the year is at least $150 million,” CBZ official, Lawrence Chidembo said.
The two SME businesses visited were Nash Paints and Jo’s Chickens. The former has so far received $2 million from the bank since 2006, while Jo’s Chickens received a $30 000 disbursement.
Nash Paints is on the verge of commissioning a new plant that is expected to be ready in August, where it would increase its capacity to 50 000 litres per day from 1 200 litres.
CBZ executive head of corporate affairs and communications, Laura Gwatiringa said the bank was focusing on taking care of the costs on behalf of SMEs rather than giving cash, which was the main reason behind the low non-performing loans ratio.
“Let us say you have your business plan and that business plan says you want to use so much money to buy equipment and whatever else it is that can enable you to run your business. We look at your business and agree on how much money you want, we then pay the service provider on your behalf,” she said.
Gwatiringa said this has helped in the monitoring loans it would have given, resulting in a low default rates.
CBZ Bank’s business banking division was formed in January 2015 to support SMEs in terms of financial and technical support.
Divisional director for business banking, Molly Dingani said the aim of this banking division was to “reach out to the financially excluded both in urban and rural areas”.
News Day