By Alois Vinga
LISTED financial services group, ZB Financial Holdings (ZBHF) fears the country’s 3,8% economic growth target for the year 2023 due to current power outages and impending elections.
Zimbabwe is currently experiencing up to 20 hours long per day power outages, severely affecting industrial productivity forcing several companies to revise downwards growth prospects for the just ended first quarter period.
Despite the power utility, Zimbabwe Electricity Supply Authority (ZESA) promising to improve the power situation, nothing has materialised on the ground.
The recent threats to embark on a collective job action by ZESA workers has also dampened hopes for an improved situation.
This year government projected economic growth to reach 3,8% with alternative institutions like the International Monetary Fund projecting just about 2,5% growth.
But the ZBHF board chairperson, Pamela Chiromo warned that in the outlook, attainment of the targeted 3,8% may go up in smoke if the power situation does not improve.
“Downside risks to the attainment of projected economic growth outturn for 2023 relate to effects of power shortages and load shedding on production, the continued effects of disruptions in global supply chains and rising global inflation.
“Other contributing risks may be uncertainty and potentially destabilising effects of the 2023 harmonised national elections, monetary instability (exchange rate depreciation and inflation), unreliable rainfall patterns and distribution, among other factors,” she said.
Meanwhile, during the period ended December 31 2022, the group recorded a 75% increase in total income from ZW$40,343 billion in 2021 to ZW$71 billion in 2022 achieved on the back of significant rise in trading income and fair value credits.
Net interest income increased by 77%, from ZW$11.359bn in 2021 to ZW$20.050bn in 2022. The performance was underpinned by the growth in the loans and advances book with gross loan impairment charges to the income statement surging by 229%, from ZW$2,136 billion in 2021 to ZW$7.035 billion in 2022.
As a result, net income from lending activities registered a growth of 41%, from ZW$9.224 billion in 2021 to ZW$13.015 billion in 2022.
The group’s commissions and fees moved up by 38% from ZW$11.570 billion in 2021 to ZW$15,910 billion.
“I would like to express my appreciation to our valued customers and all key stakeholders, for the continued support to the ZBFH Group.
“I extend my gratitude to Board colleagues, Management and Staff, without whose collective contributions the Group would not have been able to achieve the 2022 performance,” added Chiromo.
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