Barclays Zim injects $40m new money

Published: 13 December 2013

Barclays Bank (Zimbabwe) is one of four foreign-owned banks operating in Zimbabwe and the only one listed on the domestic bourse.

The bank has been critical in mobilising credit lines to boost Zimbabwe's liquidity and the Financial Gazette's Business Reporter, Paul Nyakazeya (PN), spoke to Barclays' Commercial Director Lawrence Nyazema (LN) about these issues and prospects for the bank in Zimbabwe.

PN: Locally the main issue on people's minds is the support that companies are getting in terms of loans. What is the size of the Barclays lending book at present?

LN: I am glad to say that when I review our balance sheet from the period November 2012 to November 2013, it shows good progress. We have seen a 70 percent growth in assets on our balance sheet and this comes against a background of lower growth in deposits across the market. We also have a healthy spread in terms of the sectors that we are financing.

PN: Speaking of sectors, which sectors is Barclays supporting?

LN: Barclays is supporting almost all the major sectors in our economy. We are involved in manufacturing, tourism, mining, retail and agriculture. We acknowledge that agriculture is a major player in our economy and it is for this reason that we have made efforts to ensure that we serve this sector well for the past 101 years.

PN: For a bank that has been accused of not being supportive when it comes to advancing loans, how do you think this facility is fairing against other financial institutions?

LN: Looking at the facilities that have been put on the table by the market, I am glad to say that our facilities compete quite favourably in terms of value and I believe we are contributing at least 10 percent of the money going into this sector. We also recently availed off shore funding to this sector. This speaks to new money injected into the market of at least $40 million. This is not money that was just circulating in the economy; this is new money which is being injected into Zimbabwe at a time when the need for new liquidity is important. This says a lot about our commitment to agriculture and to the economy as a whole. Ours is to continue to look for more opportunities to continue playing our part. In summary, we are involved in most of the sectors within the Zimbabwe economy and we will continue to seek ways to support each sector the best way we can.

PN: To what extent has Barclays injected new money into the Zimbabwean Market?

LN: We have brought in over $40 million as lines of credit into the economy as new money. We will continue to explore opportunities for us to do more. I also believe that our various lending initiatives in support of the export sector contribute to Zimbabwe's ability to earn new money. Thus we play a critical part in this area as well. Foreign Direct Investment has been topical. Let me say that as Barclays, we are in a prime position to link clients with investors all over the world as our operations are well represented globally.

PN: What is Barclays Zimbabwe's vision for 2014?

LN: Our vision for 2014 is aligned to the overall Barclays purpose to help our customers achieve their ambitions the right way. We believe that our role in this economy, if I were to use a soccer analogy, is to be more of midfielders. We know that when we play our role well in the economy, it will grow. Without an efficient financial services sector, economic growth becomes even more difficult.

PN: Tell us about the man behind the "Commercial Director" title, what drives you Lawrence?

LN: For me, it is all about making a difference in whatever way I can within my sphere of influence. I try to contribute in any way I can and I do this in my day job at Barclays but also by identifying projects that I can support in my personal capacity in the community where I grew up. At a higher level, I am driven by the fact that as Africans, we need to do much better for ourselves by making adequate use of our resources as a continent.
- fingaz

Tags: Barclays,