Zimbabwe

The economic turmoil in Zimbabwe casts a long, dark shadow over the country. Last year the economy shrank by 13.2% and this year it is forecast to contract by another 8.5%. Inflation peaked at over 600% in the fourth quarter last year and spent all of the first half of this year above 400%. Reckless mismanagement of monetary policy almost precipitated the collapse of the banking sector. Like other foreign-owned banks, Stanbic is determinedly persisting with sound, prudent banking practice. Enhanced asset and liability management and rigorous liquidity management has not just insulated the bank from the challenges facing the sector but it has also stimulated a flight to quality with depositors shifting their balances to strong, well-managed banks. “The operating environment was highly challenging and characterised by hyperinflation, acute foreign exchange shortages, corporate failure and general economic meltdown. Our success was achieved through dedicated teamwork, continual assessment of the operating environment and strict adherence to the authorities’ regulations and the policies of our parent company, Standard Bank of South Africa,” says MD Pindie Nyandoro. “Going forward, the bank remains committed to continuous improvement through exceptional customer service, good corporate governance and effective risk-management. As the economy improves, the business will maximise available opportunities for growth.”