BancABC Holdings Ltd.

Increasing lending capacity and reach to beneficiaries in Southern Africa

Country: East Africa (Mozambique, Tanzania, Zambia, Zimbabwe & Botswana)

Type of investment: Financial Institution

Financial close: December 2018

Tenor: 4 years

Type of Investment: Senior debt

S&E Category: F

In 2013 AATIF provided an agricultural lending facility to BancABC – a group of banks operating under the BancABC brand in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe. Agricultural lending is a key component of the overall Group’s activities but has become a particular focus for the Zimbabwean entity in recent years.

BancABC in Zimbabwe is a market leader in the sector having set up a dedicated agricultural lending team and established a unique agricultural lending strategy over the past years. A key component of the bank’s agricultural strategy is outreach to smallholder farmers by financing ring-fenced schemes with direct off-taker and input provider linkages. On a standalone basis smallholder farmers are often not able to attract financing, but through the set-up of such schemes financing becomes much more accessible as farmers are able to attain higher yields through the access to inputs and further have a stable off-take market - both of which improve their overall credit rating. With one scheme the bank is able to extend financing to several thousand farmers – a recent scheme in Zimbabwe reached over 15,000 farmers. BancABC has successfully supported and financed several of such schemes across its region.

Through BancABC, AATIF has been able to establish a footprint in Zimbabwe, a very challenging market.

Agricultural portfolio

2 %

Agricultural portfolio as a percentage of total bank portfolio (*primary farming only)

agricultural sub-loans

25

Number of agricultural sub-loans benefitting from AATIF funding seasonally

Number of employees

802

Female employees

3,019

Male employees

BancABC has a workforce of 3,821 employees, with 802 female employees (21%) and 3,019 male employees (79%).

  • Figures are based on latest available self-reported data by investees and data collected by AATIF’s collaboration partners
  • Figures are subject to change as and when additional information becomes available
  • Figures reported here are not replacing rapid appraisals / impact evaluations that are done in addition