(Excerpts from the Chairman’s Statement)
INTRODUCTION
The 2020 operating environment was largely dogged by the devastating effects arising out of the outbreak of the COVID-19 pandemic which ravaged global economies. In response to the COVID-19 pandemic, the Government of Zimbabwe like many other Governments imposed lockdown measures of varying extents in an effort to curtail the spread of the deadly Corona virus. A number of policy pronouncements were made by the Government of Zimbabwe in response to the pandemic and these affected the operations of the Group during the period under review. Globally, the focus on COVID-19 has shifted to vaccination with notable strides having been made on that front by a number of countries. We remain hopeful that the vaccination programmes will yield the desired results which should go a long way in alleviating this global crisis.
Focusing on the local economy, the first half of the year under review was characterised by hyper-inflation and incessant economic instability emanating from the deterioration of the country’s foreign exchange rate. However, the introduction of the RBZ administered Foreign Exchange Auction System on 23 June 2020 appears to have significantly contained the rapid oscillations that were characterising the country’s foreign exchange rate. Significant trades have been recorded on this platform from its inception and there has been notable stability in the foreign exchange regime ever since the auction system was introduced. This culminated in economic stability largely prevailing in the second half of the year with the annual inflation rate closing the year at 348.6% down from a peak of 837.5% recorded in July 2020. Our hopes remain pinned on the sustainability of this stability which will certainly foster economic growth into the foreseeable future.
The Bank’s digital strategy was launched at the most opportune time as it has been quite instrumental in driving business within the COVID-19 induced circumstances. The Bank has recorded significant growth, expansion and improvements on its digital platforms and this has resulted in enhanced service delivery. Furthermore, in response to the prevailing hyperinflationary environment, the Group adopted a number of value preservation strategies in order to ensure that shareholders’ value is not eroded. These measures culminated in the Group’s remarkable financial performance in spite of the difficult operating environment.
The key inflation adjusted financial highlights of the Group as at 31 December 2020 are depicted below:
