Growth Ambitions Rise as CBZ Holdings Navigates Economic Headwinds

Zimbabwe’s largest financial services group, CBZ Holdings, says it is on track to significantly expand its balance sheet and profitability despite mounting global and domestic economic pressures. Group Chief Executive Officer Lawrence Nyazema told analysts that the company remains confident of achieving its long-term targets including doubling its balance sheet and reaching US$100 million in annual profits by 2028. The group has set a goal to double its balance sheet within four years, a target Nyazema said now appears achievable given current momentum.

CBZ reported profits of US$54 million for the latest financial year but the CEO suggested earnings could have been higher if not for tax-related constraints that have since been addressed. “If this had been last year, it means we would have been on US$66 million which in my view means we are well on course to US$100 million,” he said. Despite the optimism, Nyazema acknowledged growing global risks including geopolitical tensions in the Middle East, rising energy costs and potential supply chain disruptions.

“We don’t take it for granted that there are headwinds but the reason we are here is to deal with headwinds,” he said. The group’s strategy hinges on diversification and regional expansion, alongside efforts to integrate Zimbabwe’s large informal economy into the formal banking sector. Deposits grew strongly during the year reaching close to US$1.1 billion with much of the increase attributed to funds flowing in from informal businesses and individuals gaining confidence in the banking system.