Kudzanai Gerede, Companies and Market Editor 
CBZ Holdings (CBZ) is set to list a US$500 million infrastructure bond on the Victoria Falls Stock Exchange (VFEX) and on offshore capital markets to raise funds towards the rehabilitation of the country’s ageing road network.
Group chief executive, Lawrence Nyazema, said the proposed listing will enable the financial services group to lure international and regional investors to finance the second tranche of a US$600 million road fund being rolled out in partnership with the government.
Out of the first US$100 million tranche, US$75 million has already been secured and is set to be deployed this week, with the remaining US$25 million expected shortly after.
“For the second half of the year, we are focusing on the US$600 million road project. We want to partner the government to sort out some of our road networks,” Nyazema told The Financial Gazette on the sidelines of the company’s analysts briefing this week Monday.
The funding will support the rehabilitation of key sections of the Harare-Chirundu, Beitbridge-Harare and Bulawayo-Victoria Falls roads.
Nyazema said CBZ was targeting about 350 kilometres between Harare and Chirundu, particularly the section beyond Karoi, which he described as being in a ‘deplorable’ condition.
The group also intends to complete the remaining 33 to 35 kilometres of the Beitbridge-Harare highway, while the Bulawayo-Victoria Falls Road, which stretches for more than 400 kilometres, is also earmarked for funding.
“For the half a billion dollars, we are looking at listing the bond on the VFEX as well as either a regional or international exchange. The reason for that is we intend to attract international and regional funds to come into the bond,” Nyazema said.
At an estimated US$1 million per kilometre, he said, the Bulawayo-Victoria Falls project could require about US$450 million, while the Harare-Chirundu section is estimated at US$350 million and the outstanding Beitbridge-Harare works at about US$35 million.
Nyazema said the US$600 million would cover the first and second phases of the programme, with the broader road rehabilitation initiative potentially requiring up to US$5 billion.
“We are realistic enough to know that if we wanted to raise US$5 billion in a single go, that would be difficult. So, we will do it in stages,” he said.
The proposed US$500 million bond listing is therefore expected to provide CBZ with access to a wider pool of capital beyond Zimbabwe’s domestic market.
Nyazema said the group will soon embark on international roadshows in financial centres including New York, London and Cape Town to attract investors.
Nyazema said CBZ wanted construction activity to begin before the rainy season, while preparations for the US$500 million bond continued.
“The train has left the station,” he said, adding that disbursements should begin before the end of August.
The initiative comes as the government faces persistent infrastructure financing constraints, with the private sector being called upon to complement public investment.
Nyazema said CBZ’s involvement was aimed at addressing the financing gap that had constrained infrastructure development.
“What was missing was financing because we were leaving everything to the government. This is us, as the private sector, saying how do we also come in and ensure that the infrastructure deficit that we have in this country starts to be attended to,” he said.
CBZ has also partnered with Helcraw Water, committing US$30 million towards water infrastructure rehabilitation, including the replacement of old asbestos pipes and installation of prepaid meters in Harare.
Meanwhile, the group’s total income for the six months to June 30, 2026, improved 0,4 percent year-on-year to ZiG2,86 billion supported by growth in non-funded income and “benefits of a diversified business model”.
Nevertheless, the group continued to grow its lending activities with loans and advances increasing 16,5 percent to ZiG11,87 billion from ZiG10,19 billion at the end of December 2025.
Commercial loans rose to ZiG9,56 billion from ZiG7,97 billion. Customer deposits also grew 16 percent to ZiG32,2 billion from ZiG27,76 billion.
Interest income increased 5,9 percent to ZiG1,39 billion, supported mainly by higher income from loans, which rose to ZiG902,7 million from ZiG814,1 million.
However, interest expense increased 27,3 percent to ZiG428,1 million, resulting in net interest income declining 1,6 percent to ZiG958 million from ZiG973,1 million.
Non-interest income provided some support, increasing 1,3 percent to ZiG1,89 billion from ZiG1,86 billion.
Foreign currency dealing income rose 14,6 percent to ZiG402,8 million, while fair-value adjustments on financial instruments moved from a loss of ZiG10,7 million last year to a gain of ZiG37,6 million.
However, commission and fee income fell 5,3 percent to ZiG1,28 billion, reflecting pressure on transactional revenues following changes to banking charges.
The group’s diversified operations continued to provide an important buffer.
Gross written premiums in the insurance business increased to ZiG601,8 million from ZiG430,7 million, while funds under management rose 27,3 percent to ZiG11,8 billion.
CBZ also benefited from a 151,2 percent increase in its share of profits from equity-accounted investees, which rose to ZiG137,4 million from ZiG54,3 million.
Despite a 20,3 percent decline in profit after tax of ZiG691,6 million, the group maintained a stronger balance sheet, with total assets rising 12,3 percent to ZiG46,21 billion by June 30, 2026, while shareholders’ equity increased 9,1 percent to ZiG9,97 billion.
The group proposed an interim dividend of US$3 million, equivalent to US$0,48 cents per share.
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