Almot Maqolo, Staff Writer 
ECOBANK is upbeat about the softening of economic sanctions on Zimbabwe which has brought renewed interest from international financiers previously hesitant to extend credit lines to local banks.
Over the past two decades international banks have been de-risking by withdrawing correspondent banking relationships with and extension of credit lines to Zimbabwe to avoid backlash from western powers such as Britain, US and European Union.
This rendered Zimbabwe isolated from the west-controlled international monetary system.
In March this year, US President Joe Biden signed an executive order that terminated the Zimbabwe sanctions programme in place since 2003, at the same time evoking a new set of measures under the Global Magnitsky sanctions programme which is targeting President Emmerson Mnangagwa along with other senior officials.
Notably, Zimbabwe’s restrictions under the Zimbabwe Democracy and Economic Recovery Act (ZIDERA) remain in full force.
Nevertheless, the development is expected to see several Zimbabwean entities that were under sanctions for the past 21 years finally off the hook.
In an interview with The Financial Gazette on the sidelines of the Ecobank Zimbabwe Chinese Meet and Greet Brunch Program recently, Ecobank chairman Emmanuel Gwatidzo hinted at a number of initiatives in the pipeline.
“”We are working with African Export-Import Bank (Afreximbank) and Africa Development Bank (AfDB) to secure lines of credit. Additionally, we are collaborating with a third entity, whose name I cannot recall at present,” Gwatidzo said.
“With the softening of the sanctions regime that has been placed on the country, we are starting to see some of the banks that did not want to talk to us in the past. We are starting to see them come to the table and open up to do lines of credit with us and offshore products.
“So, we are seeing some renewed activity for us, which is very positive for the bank and a big positive also for the country,” added Gwatidzo.
Financiers attributed demand to the widespread market liquidity crunch that has widened the mismatch between demand and supply.
The shortage of foreign currency has created a huge capital gap in the economy at a time when the newly introduced local currency, ZWG, is starting to show signs of instability.
In its financial results for the half year ended June 30, 2024, Ecobank loans and advances remained flat during the period under review at ZiG3,01 billion.
Ecobank posted a half-year profit of ZWG451,9 million in H1 2024 which was 114 percent above prior year driven by non-interest income. Fees and commissions income reached ZWG155,5 million partly offset by fees and commissions expenses which stood at ZWG26,1 million,the total balance sheet size of the bank marginally decreased to ZWG7,5 billion.
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