CABS is increasing financial support to Zimbabwe’s productive industries through enhanced lending facilities and specialised funding programmes, in line with government initiatives aimed at widening access to capital.
The financial services provider – a member of the Old Mutual group – secured fresh lines of credit from development finance partners during the financial year ended 31 December 2025, bringing its total approved facilities to US$162,7 million.
Managing director Mehluli Mpofu said a substantial share of the funds was directed toward agriculture and mining, which received more than US$80 million and US$40 million respectively.
“The Society is also negotiating additional credit lines targeted at productive sectors of the economy,” Mpofu said.
CABS has also tapped into the Reserve Bank of Zimbabwe’s Targeted Finance Facility, drawing ZiG60 million at concessional interest rates ranging between 20 percent and 30 percent.
The funding was primarily used to meet working capital needs for business clients.
Additionally, the CABS maintained its participation in a US$210 million syndicated facility extended to the Zimbabwe Electricity Transmission and Distribution Company, supporting investment in essential power infrastructure and electricity imports.
Mpofu noted that the institution remains focused on securing competitively priced, long-term funding to promote business sustainability.
Beyond lending, CABS partnered with the African Development Bank under the Affirmative Finance Action for Women in Africa initiative, providing business and financial management training to more than 1,000 women.
It also maintained support to small and medium enterprises, channelling US$18 million to sugarcane producers in the country’s Lowveld region.
To broaden access to financial services, the CABS set up service points for tobacco merchants in Mvurwi, Karoi and Marondera, aiding decentralised marketing of the crop.
On the digital front, CABS expanded its infrastructure with the rollout of dual-currency ATMs capable of handling both deposits and withdrawals.
The institution’s financial performance in the year under review remained robust, with net interest income rising by 29,43 percent to US$32,72 million, from US$25,28 million realised in 2024, supported by lower funding costs and growth in interest-earning assets.
Net fee and commission income increased by 28 percent to US$59 million from US$45,94 million, lifting total operating income to US$91,73 million from US$71,22 million.
However, other operating income declined to US$8,10 million from US$22,36 million, largely due to reduced volatility in exchange rates, affecting foreign currency positions.
The introduction of income tax for building societies during 2025 weighed on profitability, resulting in a tax charge of US$15,11 million, compared to no tax obligation in the previous year.
CABS is Zimbabwe’s largest building society and a leading financial services provider, offering banking, mortgage loans, and investment services. – TML