Leading financial services institution, Stanbic Bank, has adopted a growth strategy for the mining sector as it seeks to play a pivotal role in boosting the sector in line with government targets.

Speaking at the Chamber of Mines dinner held in the capital recently, Stanbic Bank CE, Solomon Nyanhongo (pictured) told attendees that the institution was committed to finding lasting solutions towards consolidating growth drivers for the mining industry.

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% foreign currency receipts for the country. The strategy is premised on the realisation that we need foreign currency for our economy to assist the nation to achieve its goal of a medium income earning economy,” said Nyanhongo.

The government is pursuing an economic road map to transform the country into an upper-middle-income economy by 2030. That process is currently guided by the National Development Strategy (NDS1) economic blueprint running for five years to 2025 after which NDS2 will follow up to 2030.

In his address, Nyanhongo noted that the mining sector is targeting US$12 billion in annual revenue by 2023, and said Stanbic Bank is geared to provide solutions to assist its clients attain this.

Stanbic Bank already has a significant role to play in the market and contributed over US$20 million in 2021 alone.

“Stanbic Bank is well placed to play a key role in achieving the aforementioned targets on the back of the strength obtained from its parent company, Standard Bank Group. Standard Bank Group recently participated at the just ended Mining Indaba in South Africa and as Stanbic Bank, we piggyback on its expertise to contribute meaningfully towards national development,” he said.

Nyanhongo added that Stanbic Bank’s capabilities add value to the mining sector supported by the knowledge, experience, and insights of industry experts.

The institution has mining specialists at the Group level and locally as well who help continuously monitor clients’ business activities to proffer solutions relevant to them.

He noted that mining is subject to global markets volatilities, and it is imperative to rely on experts with their finger on the 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. Some of the ways we have provided support are through expert advice to clients and also sponsorship of calendar events such as these, that bring together thought leaders in the industry,” he said.

Nyanhongo said as much as Stanbic supports the mining sector, there are challenges that need the input of all stakeholders to overcome.

 

The 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. Mining is a key sector of the economy significantly contributing through forex, employment, and other add-ons. Africa and indeed Zimbabwe is our home and as Stanbic Bank, we are here to drive her growth and will continue to play our part in achieving national targets,” said Nyanhongo.