CBZ Bank Limited Presentation

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CBZ Bank Limited Presentation

• Presentation by D. Z. Mandivenga SMEs
  Microfinance Executive at The AFRACA Southern
  Africa Sub Regional Workshop

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INTRODUCTION

• Who is CBZ Bank Limited
• Structures Divisions
• Number of Branches
• Vision and mission
• - Our commitment
• - Our principles
• - Our driving force

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OUR COMMITMENT

• To be a progressive strong bank geared to serve
  personal and corporate customers globally from
  our home base. To satisfy the diverse needs of
  our customers by offering a wide range of
  innovative financial services solutions.

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OUR PRINCIPLES

• Governance Conscious-Dedicated to being ethical,
  compliant and transparent in all our activities.
• Customer Focus-Dedicated to satisfying customers'
  needs by being responsive, professional,
  efficient and reliable.
• Innovative Approach-Dedicated to being creative
  in the development and provision of financial
  solutions.
• Staff Focus-Dedicated to staff empowerment and
  motivation to foster a culture of productivity
  and commitment.
• Social Responsibility-Dedicated to being a
  responsible and good corporate citizen.

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OUR DRIVING FORCE

• To be the preferred bank where excellence is a
  virtue. This will be achieved through innovative
  service delivery, competency and flexibility
  whilst adhering to principles of integrity,
  transparency and fairness.

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Why small holder farming sector still remains
grossly under- funded, the Commercial Banks
perspective

• Lack of tangible collateral
• Fragmented nature of sector
• Yields of crops are normally below economic
  thresholds
• Funding the small holder not cost effective
• Lack of profitable markets
• Cost of money

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How did CBZ Bank address the needs of the sector?

• Opened a new unit for Community Banking to cater
  for micro and small clients.
• Employed specialised staff to dedicate their time
  to this special group
• Accepted household assets ,group guarantees and
  personal guarantees as substitutes to the usual
  preferred tangible 1st class security.
• Sourced technical support from CARE and grant
  assistance from DFID
• Due to the high transaction costs associated with
  lending to micro and small client we employed the
  following
• - Charged interest rates that covered
  admin costs, loan losses and cost of funds
• - Maintained levels of Delinquency at
  very low levels through use of effective group
  lending methodology
• - Linkages helped us to reach remote
  rural areas

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How did CBZ face these challenges?. continued

• We took a holistic approach to serve this sector
  (All financial services)
• Worked with other PVOs operating in Rural areas
  by going into partnerships
• Worked with other big institutions whose core
  businesses is Agricultural Production ( Out
  growers Scheme)
• Grouped small communal farmers for purposes of
  marketing large quantities of produce.

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Successful Partnerships in Our rural expansion
thrust

• Initiative for the Development and Equity in
  African Agriculture (IDEAA)-provision of in calf
  heifers to small holder farmers
• Farmers Association of Chiefs/Headman Investment
  Groups (FACHIG)-provision of agricultural inputs
  to communal farmers
• Southern Alliance for Indigenous Resources
  (SAFIRE)-sustainable use of natural resources

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What does CBZ have in store?

• Agricultural Thrust mainly expansion in rural
  areas / Resettlement areas
• Value chain concept
• Partnership /Linkages to be increased
• Networking

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Recommendations for Improving Service Delivery To
Rural Clients

• Other banks must take a leaf from our
  experiences, for we cannot reach all the
  deserving clients.
• Government must seriously consider the issue of
  incentivising those offering their services in
  the rural areas so that more players can come in.
• The concept of value chaining financing must be
  promoted.
• Use of mobile banks must be encouraged in order
  to reach remote areas.

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Conclusion

• Our countrys economy is Agrobased and for
  it to reach its desired objectives Financial
  institutions especially Commercial Banks must
  play a key role and CBZ has led by example in our
  country. Special mention must go to our Central
  Bank which is supporting Agriculture through a
  number of initiatives such as

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Conclusion.continued

• The Mechanisation Programme
• Cheaper sources of funds
• Technical Assistance
• I am very optimistic that with such kind of
  innovations (Thinking outside the box) the
  country and the region can confidently say we
  will achieve the set MDGs

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I THANK YOU.