HARARE — Profits in Nedbank’s Zimbabwean unit, MBCA, declined 19% to $4m in the 12 months to the end of December last year despite accessing $75m in lines of credit as well as getting technical support from the South African bank.
“The bank (MBCA) will look into ways of realising business growth opportunities … by increasing foreign lines of credit. The bank is in contact with our clients to work on modalities for them to access Nedbank Capital’s ECIC backed facility,” MBCA chairman Willard Zireva said last Thursday.
Zimbabwean banks are battling a tight liquidity crunch and high overhead costs. Efforts to contain a brain drain from the country have worsened the situation as they have to pay skilled employees more to keep them in the country.