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The Banking Sector in Zimbabwe
BY Louise Mitchell
Zimbabwe
26 February 2020
R 14 400.00 (ZAR)  
estimated $ 866.18 (USD) *
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The Banking Sector in Zimbabwe


The performance of Zimbabwe’s banking sector is constrained by the economy. The re-introduction of the local currency did not bring economic relief, and exacerbated cash shortages and hampered trade. The decline in the number of banks in the past decade resulted from the collapse of some locally-owned banks and consolidations and mergers to meet new stringent regulatory capital requirements. Bank failures resulted from poor corporate governance, insolvency and imprudent lending activities, exacerbated by low confidence in the banking sector due to high transactional costs and marginal rates on deposits.


Digital Financial Services


Due to the cash crisis in Zimbabwe, the increased use of alternatives for cash transactions has seen most service providers in the public and private sector adopting mobile money and point-of-sale to process payments. These digital channels are now the most common alternative for the country’s unbanked population and the significant informal sector.


Microfinance Institutions


Commercial banks are competing with the increasing number of microfinance institutions that are empowered by government initiatives to improve financial inclusion. Many consumers choose microfinance institutions instead of banks because of more flexible conditions as many accept motor vehicles and other movable assets such as livestock as collateral which is convenient to low-income borrowers. The Reserve Bank’s Microfinance Development Committee was established to develop a microfinance development strategy for financial institutions to serve the low income and marginalised groups.


Report Coverage


This report on The Banking Sector in Zimbabwe includes commercial banks, merchant banks and building societies, the central bank, development finance institutions, and other credit granting facilities including microfinancing. It includes the latest available information on the state and size of the sector and factors that influence it such as the change in the currency and inflation. There are profiles of 24 companies including the Reserve Bank of Zimbabwe, commercial banks such as CBZ and Ecobank, microfinance banks such as GetBucks and development finance institutions including the Infrastructure Development Bank.


Page
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 2
3.1. Industry Value Chain 7
3.2. Geographic Position 8
4. SIZE OF THE INDUSTRY 8
5. STATE OF THE INDUSTRY 12
5.1. Local 12
5.1.1. Corporate Actions 18
5.1.2. Regulations 19
5.1.3. Enterprise Development and Social Economic Development 22
5.2. Continental 24
5.3. International 29
6. INFLUENCING FACTORS 32
6.1. Economic Environment 32
6.2. Financial Inclusion 33
6.3. Operating Costs 34
6.4. Information Technology (IT), Research and Development and Innovation 35
6.5. Labour 35
6.6. Cybercrime and Fraud 36
6.7. Environmental, Social and Governance (ESG) Factors 37
7. COMPETITION 37
7.1. Barriers to Entry 38
8. SWOT ANALYSIS 38
9. OUTLOOK 39
10. INDUSTRY ASSOCIATIONS 40
11. REFERENCES 40
11.1. Publications 40
11.2. Websites 41
APPENDIX 1 43
Summary of Notable Players in all sub-Sectors of the Banking Industry 43
COMPANY PROFILES 46
AFRICAN CENTURY LTD 46
AGRICULTURAL BANK OF ZIMBABWE LTD 49
BANCABC ZIMBABWE LTD 53
CBZ HOLDINGS LTD 56
CENTRAL AFRICA BUILDING SOCIETY 60
ECOBANK ZIMBABWE LTD 64
FBC HOLDINGS LTD 67
FIRST CAPITAL BANK LTD 71
GETBUCKS MICROFINANCE BANK LTD 76
INFRASTRUCTURE DEVELOPMENT BANK OF ZIMBABWE 79
LION MICROFINANCE LTD 82
METBANK LTD 83
MICROPLAN FINANCIAL SERVICES (PVT) LTD 86
NATIONAL BUILDING SOCIETY LTD 89
NEDBANK ZIMBABWE LTD 92
NMBZ HOLDINGS LTD 96
PEOPLE'S OWN SAVINGS BANK (THE) 101
RESERVE BANK OF ZIMBABWE 106
SMALL AND MEDIUM ENTERPRISES DEVELOPMENT CORPORATION (THE) 109
STANBIC BANK ZIMBABWE LTD 111
STANDARD CHARTERED BANK ZIMBABWE LTD 116
STEWARD BANK LTD 120
SUCCESS MICROFINANCE BANK LTD 122
ZB FINANCIAL HOLDINGS LTD 124