
By Inside Biz
Nomfundo Fakudze, the newly appointed Executive Director of Status Capital Building Society, says they are highly optimistic about the future.
“One thing we are certain of is that we are optimistic about the future of our Building Society and remain committed to delivering sustainable investment returns for our shareholders.”
The Executive Director said although they made a loss in FY 2021, the Society has long-term innovative plans to ensure the brand thrives.
“Although the Society made a loss in FY 2021, there are long-term innovative plans in place to strengthen and steady the brand. Our dedicated team is working tirelessly to resolve existing issues and ensure past mistakes are not repeated. We are confident that through these efforts, we reassure our shareholders and clients that the organization will get back on track and deliver value for all stakeholders,” she says.
The Building Society notes that the primary cause for losses experienced is a combination of factors that include, high outsourcing fixed costs and delays in the launching of the banking system to ensure the diversification of revenue resources- which were addressed in 2022 by decentralizing operations from Management Companies to ensure expenses were reduced.
“Our losses remained large this financial year, which was expected as we continued to invest and grow our business, resulting in higher costs” noted Fakudze.
She further noted that one of the other factors for poor performance was the advent of the Covid-19 pandemic which also meant that their development and progress were slowed down whilst some of the expenses aligned to such projected growth could not be avoided.

The building society’s loss for the year, totaled E9.4 million for FY 2021, compared to E2.8 million for FY 2020.
The Society noted that a significant portion of its expenses E17.2 million was paid out to members under its Fixed Deposit product, sustaining many households during the Covid-19 period which resulted in high interest expense.
“These were mitigated in the following financial year and the Society’s interest expenses dropped by a net margin of 3.75%. Comparing the scales for start-ups within the Financial Sector, the Building Society maintained a low capital expenditure and continued to stagger its capital projects to minimize huge losses. During this same period, Status Capital Building Society also tripled its customer base, there was an increase in assets and the Society expanded both its senior management team and support staff.”
Transparency is key to a better relationship with shareholders and customers

She said as a Society they deeply regret the impact the aforementioned figures may have had on the trust that our customers and stakeholders have placed in us.
“We take this opportunity to address these concerns as part of our commitment to transparency. Since then, the Building Society’s immediate focus has been on stabilizing and restoring the Building Society’s operations and ensuring that the significant investment into the society’s startup costs yields positive results in the long run.”
Fakudze adds, “To further strengthen the business and meet future capital requirements, Status Capital Building Society is actively planning to raise the necessary funds by FY 2023. While there are inherent risks in securing the required capital on favorable terms, we are encouraged by our customers’ support this year and from recent positive discussions with potential partners in FY 2023,” she says.
Fakudze concluded by reassuring the public and its members of innovation and the delivery of sustainable products going forward.
“As we look ahead, Status Capital Building Society remains steadfast in our vision for growth and innovation and is committed to delivering sustainable savings options and mortgages to help our members save for the future. We remain optimistic about the future and deeply appreciate the continued trust and support from all our stakeholders,” concluded Fakudze.