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ABC seeks $50m

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ABC Holdings Limited was seeking $50 million additional capital from its shareholders to raise funds for the company, group chief executive officer Doug Munatsi said.

Munatsi said BancABC Zimbabwe and BancABC Tanzania were priority areas although all the group subsidiaries require additional capital.

“Zimbabwe is growing fast and we want to make sure that the growth is supported. The $50 million is for the whole group and will be distributed as per need. We can see growth in Tanzania and Zimbabwe crippling and more capital is needed,” Munatsi said.

“We will be looking for the funds from among existing and new shareholders.”

Munatsi said the group had occupied a big market space in the retail business taking advantage of the wait-and-see attitude adopted by other banks which had also assisted the group in its repositioning.

“There is still a liquidity challenge in the country. International banks are not lending. The bulk of corporate sector is facing liquidity challenges. It’s our desire to build our position up the ladder,” Munatsi said.

He said retail business in Zimbabwe was stronger than the cost of raising business adding that going forward, the group expected a strong performance in the second half of the year.

The company expect to increase its branches to 10 from five in the country. BancABC Zimbabwe share of loans in the financial sector increased to 10% in the first six months of the year from 7% last year while its share on deposit rose to 11% from 6% in June 2010.

ABC Holdings Limited’s subsidiaries BancABC Zimbabwe and BancABC Tanzania were the major contributors to attributable profit of the company of BWP 73 million for the six months ended June 30 2011 from BWP 45 million last year.

Munatsi said Banc ABC Zimbabwe and BancABC Tanzania recorded increase of 421% to 69% respectively while BancABC Botswana attributable profit was flat, BancABC Mozambique and BancABC Zambia declined to 41% and 18% respectively.

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