NMBZ
NMBZ’s principal subsidiary is NMB Bank (formerly National Merchant Bank of Zimbabwe), a key financier and banker to the SME sector in Zimbabwe providing a wide range of financial products and services. NMBZ commenced operations as an accepting house license in May 1993. After recording phenomenal growth in its initial years, NMBZ was floated on the Zimbabwe Stock Exchange in 1997, before the authorities granted it a commercial banking license in December 1999.
Country Overview
Zimbabwe has since the early 2000s experienced an economic meltdown characterised by record hyperinflation, shortage of foreign currency, and weak economic fundamentals such as high unemployment and low productive capacity utilisation. However, since 2009 the economy has recorded modest growth averaging 6.4% per annum.
Zimbabwe is one of Sub-Saharan Africa’s most diversified economies with rich and diverse mineral endowments and favourable climatic conditions for agriculture. With a GDP of USD 28.4bn Zimbabwe has considerable unexploited potential to grow into an upper-middle class economy once the challenges it faces such as price and exchange rate instability, misallocation of productive resources, high informality, low investment, and limited structural transformation are addressed.
High and unsustainable debt arrears to international financial institutions (IFIs) limit Zimbabwe’s growth potential. It is encouraging to note that the Government of Zimbabwe is now taking steps to regularise its relationship with IFIs. To date, the government has prepared an Arrears Clearance, Debt Relief, and Restructuring Strategy, resumed token payments to IFIs and Paris Club creditors, and initiated a structured Dialogue Platform with creditors and development partners with the aim to agree on a program of economic, governance and land reforms.
Banking Sector Overview
Zimbabwe has a competitive banking sector with 14 commercial banks, four building societies, and one savings bank, along with microfinance institutions and development finance institutions. The Reserve Bank of Zimbabwe (RBZ) plays a key role in ensuring regulatory stability. Financial inclusion has seen significant growth, with over 4.2 million bank account holders in 2024, up from 3.7 million in 2022. Additionally, 5.1 million people are now mobile money users, reflecting the ongoing shift towards digital financial services. Over 75% of households now have access to either a bank account or mobile money, providing ample opportunities for further innovation. Despite economic challenges, the banking sector remains resilient, supported by the RBZ’s continued regulatory and supervisory efforts.