Staff Writer
CABS committed US$20 million to the US$125 million syndicated financing facility for Mutapa Gold Resources’ Shamva Hill project, reaffirming its commitment to supporting strategic sectors of the economy through long-term financing partnerships.
Speaking at the signing ceremony last Thursday, CABS Deputy Managing Director Mr Cecil Ndoro said the bank remained committed to working closely with the mining sector and other productive industries as Zimbabwe seeks to accelerate economic growth through increased investment.
The landmark syndicated facility, arranged by a consortium of local financial institutions, will finance the development of the Shamva Hill project while also providing additional capital for the expansion of Jena Mine.
Mr Ndoro congratulated Mutapa Gold Resources and the participating financial institutions for successfully concluding one of the country’s largest locally arranged mining finance transactions.
“Let me start by congratulating Mutapa Gold’s team and the entire Mutapa Development Fund on this very momentous occasion,” said Mr Ndoro.
“I also want to congratulate my fellow bankers for the collaboration that has made this particular transaction possible. Looking ahead, we will continue to be partners.”
He said the transaction reflected the growing capacity of Zimbabwe’s financial sector to mobilise capital for transformative investments capable of driving national economic development.
“As CABS, please allow me to take this opportunity to reaffirm our commitment. We are working very closely with the mining sector in Zimbabwe, with the gold sector in Zimbabwe, and last but not least, we are partners in contributing to the success of this project,” Mr Ndoro said.
The syndicated facility is one of the largest ever arranged exclusively by local banks for a mining project and exceeded Mutapa Gold’s initial funding target of US$75 million by US$50 million, underscoring growing confidence by domestic financial institutions in financing large-scale mining investments.
The financing package is led by CBZ Bank with a US$25 million commitment, alongside Ecobank (US$25 million), CABS (US$20 million), NMB Bank (US$15 million), ZB Bank (US$15 million) and FBC Bank (US$10 million), with additional participating institutions expected to complete the balance of the syndication.
The additional funding will be directed towards expanding operations at Jena Mine, complementing investment in the Shamva Hill project as Mutapa Gold pursues an ambitious strategy to increase production and strengthen its position as Zimbabwe’s largest gold producer.
Speaking at the ceremony, Shamva Mine manager Engineer Gift Mapakame described the transaction as more than the financing of a single mining project.
“This is a demonstration of what can be achieved when capital, technical expertise, institutional confidence and a shared vision come together,” he said.
Eng Mapakame said the deal marked a turning point for Zimbabwe’s financial sector, demonstrating that local banks now possess both the confidence and sophistication to finance capital-intensive mining projects that were previously considered beyond their reach.
He said the Shamva Hill project had been under development for five years and would significantly increase production at Shamva Mine from approximately 0.8 tonnes to 2.4 tonnes of gold annually once commissioned in 2028.
Mutapa Gold Resources chief executive Mr Patrick Maseva-Shayawabaya said the response from local banks had surpassed expectations.
“When we went into the market, we were looking for US$75 million. The financial services industry in Zimbabwe surprised us. We have raised US$125 million,” he said.
Beyond increasing gold output, the project is expected to generate wide-ranging economic benefits through investments in water and electricity infrastructure, healthcare and education facilities, while creating approximately 1,800 jobs during construction and operational phases.
The transaction is also expected to strengthen collaboration between the banking sector and the mining industry, reinforcing confidence in locally mobilised capital as a catalyst for industrial expansion and Zimbabwe’s broader economic transformation.
