CBZ Holdings Limited

CBZ Holdings Limited (Zimbabwe) releases its 2021 Integrated Annual Report

By Published On: July 12th, 2022Categories: Corporate announcement, Earnings
Cbz Holdings Limited 2021 Annual Report

CBZ Holdings Limited (CBZ.zw) 2021 Annual Report

Introduction

It is a pleasure to present an update on the financial and strategic performance of CBZ Holdings Limited and its subsidiaries for the year to 31 December 2021.

Although the Covid-19 pandemic and supply chain constraints continued to inhibit activity during the year 2021, the overall impact was lessened by improved vaccine uptake, reduced infection levels and continuation of accommodative policies by most monetary and fiscal authorities. One of the most notable global policy interventions was the allocation and disbursement of Special Drawing Rights “SDRs” in August 2021 by the International Monetary Fund “IMF”, which undoubtedly boosted liquidity and foreign currency reserves for its member countries.

In Zimbabwe, both the monetary and fiscal authorities continued to pursue policies aimed at achieving a balance between various competing goals. Government and private sector support in the agricultural sector resulted in the country recording significant improvement in the output of several agricultural commodities, including grains. The Government also enhanced its investment in infrastructure projects, including, road rehabilitation, dam construction and airport expansions, which resulted in growth of private sector investors in the financial services, construction, manufacturing and transport sectors, among others. The monetary authorities also pursued complementary monetary policy measures, to fight evident inflationary pressures and at the same time promote economic activity and growth through credit expansion and investment in the productive sectors. The improved economic activity, together with elevated diaspora remittances, both supported and boosted individual and household incomes, further stimulated and sustained demand in the tertiary sectors of the economy.

In view of these developments, the Group continued to prioritise the well-being of employees, clients and stakeholders. We also steadfastly upheld our promise to offer convenience and satisfaction to our customers, leveraging investment in technology, human and manufactured capital to deliver specialized service and solutions.

Environmental, Social & Governance “ESG”

The shift towards environmental accountability is expected to gather pace in 2022. As a priority, the Group is actively aligning operations, activities and strategies to support Environmental, Social and Governance “ESG” practices and goals.

Corporate Social Responsibility

CBZ Holdings remains dedicated and committed to exemplary corporate citizenship. Through community involvement, the Group hopes to meaningfully promote advancement to marginalized individuals and organizations in society, ultimately enhancing living standards in a sustainable manner.

In 2021, the Group continued to partner with the communities in various initiatives including health, education and welfare. In the Health sector, CBZ Holdings donated Personal Protective Equipment (PPE) to major provincial hospitals namely Parirenyatwa Group of Hospitals, Sally Mugabe Hospital, Wilkins Hospital, Chiredzi General Hospital and United Bulawayo Hospital. Hand sanitizers were donated to various institutions including Murwira Primary School in Bikita, Nyazvikari Primary School in Chipinge, Tanyaradzwa Children’s home in Murewa, Tirivanhu Children’s home and Danai Children’s Home. Groceries were contributed to the following charitable organisations: Tinokwirira Special School, Tirivanhu Therapeutic Centre and The Society for the Destitute Aged (SODA).

The Group donated various equipment to the Traditional Midwives in Epworth Harare assisting with healthy deliveries in their community. During the peak period of the Covid–19 pandemic, the midwives assisted over 2000 marginalized women delivering healthy babies in their homes.

In a drive towards digitization and enabling the community to expand online access, the Group donated laptops to Mpilo Central Hospital doctors and administration staff as well as to Manicaland State University of Applied Sciences.

Share Price Performance

On the capital markets, the CBZH share price declined by 11.8% from ZWL$85 at the beginning of the year to close at ZWL$75.20. The ZSE benchmark index rose by 311% growth. CBZH ended the year with a market capitalisation of ZWL$39.3 billion. The graph below shows the movements in the CBZH share price and the benchmark industrial index from December 2020 to December 2021.

Governance & Directorship

The CBZ Holdings governance framework supports the principles of integrity, strong ethical values and professionalism. The Board recognizes that it is accountable to its Shareholders for good corporate governance and is committed to highest standards of governance.

In an environment of increasing change and complexity of regulation, the Board aims to achieve a balance between the governance expectations of shareholders and other stakeholders as well as the need to generate competitive financial returns. The Board has performed amazing work setting the strategic direction of the Group and ensuring that the Group manages risk effectively.