Zimbabwe’s largest bank, CBZ Bank, has received a significant boost from the African Export-Import Bank (Afreximbank) in the form of an $80 million loan package. The deal, signed during Afreximbank’s annual meetings in the Bahamas, aims to address financing challenges and stimulate trade activity in the country.
The package consists of two facilities: a $60 million line of credit and a $20 million Afreximbank Trade Facilitation Programme (AFTRAF) facility. The line of credit will directly benefit small and medium-sized enterprises (SMEs) and local businesses, many of whom struggle to access financing due to limited exposure from international banks.
“This facility will help bridge the financing gap faced by Zimbabwean businesses,” said Haytham El Maayergi, Executive Vice President of Afreximbank’s Global Trade Bank. “It will allow CBZ Bank to provide much-needed financing, easing pressure on foreign currency in the country.”
The AFTRAF facility tackles a different challenge – the scarcity of confirming banks for letters of credit. This program allows CBZ Bank to issue letters of credit confirmed by Afreximbank, facilitating essential imports like fuel, medicine, and fertilizer. It also supports exports and imports of vital goods and services across Africa.
“This program will increase intra- and extra-African trade for Zimbabwe,” explained El Maayergi. “It will also enable CBZ Bank to expand its trade activities and build stronger correspondent banking relationships.”
For CBZ Bank, the deal aligns with their strategic plan to promote financial inclusion and support key industries. They aim to utilize the funds to provide affordable mobile banking solutions, expand product offerings, and finance the import of raw materials. SMEs benefiting from the credit line will even have access to non-financial support programs.
“This $80 million funding will go a long way in supporting export growth and easing liquidity challenges,” said Mrs. Smangele Mandidi, Acting Managing Director of CBZ Bank. “We are grateful for Afreximbank’s partnership and look forward to using these resources to drive economic activity in Zimbabwe.”
