eBusiness Weekly
Business Writer
STANBIC Bank says it has adopted a mining sector growth strategy, which will empower players in the mining industry, as it seeks to position itself as a key player in the sector’s financing.
Solomon Nyanhongo, the chief executive of Stanbic Bank, revealed this at the just ended Chamber of Mines conference in Victoria Falls, indicating that his institution was committed to finding lasting solutions towards consolidating growth drivers for the industry.
The intention to fund the mining sector operations by the bank has potential to stimulate the sector which is already earmarked to attain a US$12 billion annual revenue by 2023.
According to Nyanhongo, the bank is geared to provide solutions to assist its clients to attain intended output.
Stanbic Bank already has an important role to play in the market and contributed over US$ 20 million to the sector in 2022.
While addressing participants at the symposium Nyanhongo said Stanbic’s core purpose was to champion Africa and in particular, Zimbabwe’s growth across key sectors including mining.
“Our institution has adopted a growth strategy for the sector cognizant of the fact that mining alone provides over 70 percent foreign currency receipts for the country. The strategy is premised on the realization that we need foreign currency for our economy to assist the nation to achieve its goal of a medium-income earning economy,” said Nyanhongo.
Adding that Stanbic Bank’s capabilities add value to the mining sector supported by knowledge, experience and insights – from industry experts.
Stanbic said as an institution it has mining specialists at local and group level who will continuously help and monitor clients’ business activities to proffer relevant solutions.
Nyanhongo noted that mining is subject to global markets volatilities, and it is imperative to rely on experts with their finger on pulse, taking a long-term view, while consistently monitoring trends in international commodity prices
“Over the 30 years that Stanbic Bank has operated in Zimbabwe, we have supported corporate entities and related ecosystem partners feeding into the sector. We have provided support through expert advice to clients and also sponsorship of calendar events such as this conference, that bring together thought leaders in the industry,” he said.
However, Nyanhongo indicated that as much as Stanbic supports the mining sector, there are challenges that need the input of all stakeholders to overcome.
He said challenges in the operating environment calls for continued engagement to come up with acceptable mitigants as key stakeholders’ structure solutions and in consultation with authorities, where necessary.
“Despite these challenges, we see a positive outlook of the mining sector hence our significant investment,” said Nyanhongo.
Mining is a key sector of the economy that significantly contribute through forex earnings, employment, and other add-ons.
Stanbic Bank indicated that it was there to play part in achieving national targets and driving growth of Zimbabwe.
