The development comes as Zimbabwe is poised for another record-breaking winter wheat harvest after farmers across the country exceeded the 120 000-hectare target set for the 2025 winter cropping season, targeting a record wheat output of 600 000 tonnes.
Last year, Zimbabwe achieved a record-breaking wheat harvest of 563 961 tonnes, surpassing the previous year’s 467 000 tonnes.
This marked the highest wheat yield since the advent of commercial farming for the crop in 1966, securing Zimbabwe’s self-sufficiency for the third consecutive year.
Enhanced wheat production can improve cereal availability, also contributing to the country’s Gross Domestic Product (GDP) growth.
POSB’s commitment to financing productive sectors like agriculture demonstrates its role in driving economic growth and development.
Last year, POSB obtained a US$10 million loan from Afreximbank under the African Trade Facilitation Programme (AFTRAF) facility as part of its endeavour to provide crucial support to Zimbabwe’s main productive sectors, positioning the local economy for a more competitive and resilient future.
Addressing stakeholders at the 2024 annual general meeting, POSB chief executive Mr Garainashe Changunda said the funding has laid the groundwork for a bountiful winter wheat harvest.
He said the initiative also demonstrated POSB’s commitment to empowering farmers and contributing to the country’s agricultural productivity and food security. “We were able to finance the winter cropping season, enabling the planting of 5 500 hectares of wheat valued at an estimated US$13,2 million.
This investment in agriculture highlights the importance of strategic financing in supporting key sectors and promoting economic prosperity. “Provision of this necessary funding ensures a successful cereal production,” said Mr Changunda.
This comes as various stakeholders, including the Agriculture and Rural Development Agency (ARDA) estates, irrigation schemes, joint ventures with banks (AFC, CBZ Agro-Yield, NMB), and self-financed farmers, are working towards achieving this milestone.
Operationally, POSB delivered a strong financial performance in 2024, characterised by significant growth in net interest income, which increased to ZiG182,48 million, up from ZiG139,36 million in 2023.
Fees and commission income rose by 28 percent to ZiG537,17 million, from ZiG421,13 million in 2023, highlighting the bank’s diversified revenue streams.
The bank’s total assets surged by 104 percent to ZiG2,72 billion as of December 31, 2024, from ZiG1,33 billion in the previous year.
Furthermore, the bank’s liquidity ratio stood at 65 percent, well above the minimum regulatory requirement of 30 percent, confirming its capacity to honour its obligations and meet its financial commitments.
POSB’s capital adequacy ratio reached 56,65 percent, significantly exceeding the regulatory requirement of 12 percent, which demonstrates the bank’s strong financial foundation and ability to absorb potential shocks, positioning it for continued growth and success. “The bank has remained resilient and continues to contribute positively to economic growth, despite the challenging environment,” said POSB chief finance officer Mrs Maria Gunde.
Consequently, POSB managed to declare a US$1,5 million dividend for the 2024 financial year, marking a significant increase from the US$589 000 dividend paid in 2023.
This upward trend indicates the bank’s growing financial strength and its commitment to rewarding shareholders.
The increased dividend payout shows a positive outlook for the bank’s future performance.
POSB transferred 100 percent of its shares to MIF (in the last quarter of 2023), an investment vehicle established under the Sovereign Wealth Fund of Zimbabwe Act Chapter 22:20. – Herald
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