Stanbic Bank serves the Mining sector through its Corporate and Investment Banking (CIB) and Commercial Banking units. The Commercial Banking mining portfolio is relatively new, having been setup in 2013 to support the middle tier mining houses, and also provides adequate support to their suppliers and contractors as a way of strategically aligning their needs. Stanbic Bank has played a pivotal role in the mining sector by availing several facilities over the years to various players. The mining houses leveraged off these facilities which allowed them to purchase new equipment and refurbish existing plants, activities which assisted in the ramp up of production and the government’s goals to achieve mineral production annual targets across all minerals.
According to the 2018 State of the Mining Industry Survey Report, Mining accounts for about 16% of the country’s GDP, 5% of employment (50 000 jobs), and 56% of total foreign exchange earnings (USD45m/week). The sector has immense opportunities for investment as the country is endowed with a vast range of mineral resources. Mining is a complex, risky and capital-intensive business, therefore, it requires a bank that extensively understands the requirements and as part of Standard Bank Group, we leverage on over 157 years of experience. The Mining sector has to date been the most dynamic sector of the Zimbabwean economy with average annualised growth of 35%.
Zimbabwe’s Mining sector has thus embarked on a growth path as evidenced by the increasing growth rates across most mineral groups. Stanbic Bank has strategically customized different facilities based on client needs and availed facilities which include;
• Vehicle and Asset Finance (VAF) for the procurement of standby and standalone industrial generators to circumvent the current electricity challenges bedevilling the country.
• Working capital used for the procurement of raw materials and other critical consumables used in mineral production.
• Trade financein the form of L/Cs which funded the procurement of raw materials and equipment.
• Salary-based loans which boost staff morale and their personal development.
Our support of the Mining sector remains fully rounded and does not end with offering advise through our Standard Bank Sector Specialists. We have extended our services to assist with full understanding of various exchange control and legislative requirements, given the many changes that have been taking place in the country. We have developed customized financial literacy sessions which speak directly to the Mining sector and its operations, a move which has seen our clients operating within the legal frameworks of financial legislation, cutting out the risk of failure to comply.
The Stanbic Bank mandate is to fully understand and support the Mining sector, which is why we support events such as the Chamber of Mines Annual General Meeting, attending Mine Entra and sponsoring various Mining Indabas. All this has helped us gain greater understanding of the sector and the requirements of the players within the industry. It is our aim to drive Zimbabwe’s growth and we look forward to fully complimenting growth in the Mining of Gold, Platinum, Chromite, Nickel, Coal, Diamonds, Iron Ore, Copper and Coal Bed Methane.