By Udeme Akpan
African Export-Import Bank (Afreximbank) has concluded financing facilities totaling US$190 million for CBZ Bank Limited of Zimbabwe, which is expected to support Zimbabwe’s economic growth.
In three separate facility agreements, signed in El Alamein, Egypt, by Haytham Elmaayergi, Executive Vice President, Global Trade Bank, Afreximbank, and Valeta Mthimkhulu, Managing Director, CBZ Bank Limited. The facilities aim to strengthen CBZ Bank’s capacity to provide financing products to companies across Zimbabwe.
The first facility is a US$150-million revolving trade finance facility for CBZ Bank Limited, enabling it to provide funding and letters of credit support to companies in Zimbabwe, helping bridge the trade finance gap in Africa.
A second facility, a US$20-million dual-tranche SME finance facility, will support CBZ Bank Limited by strengthening its capacity to support Small and Medium Enterprises (SMEs) engaged in trade and other trade-related activities. It is expected to strengthen CBZ Bank’s capacity to support SMEs through financing products and capacity building.
Finally, the two institutions also signed an agreement for a US$20-million dual-tranche on-lending facility to CBZ Bank Limited to help reduce power deficits and increase power stability in Zimbabwe and the SADC region, positioning CBZ Bank to participate in an approved US$210-million syndicated dual-tranche facility for the Zimbabwe Electricity Transmission and Distribution Company.
Mr. Haytham Elmaayergi, Executive Vice President, Global Trade Bank, Afreximbank, noted that the facilities, directly and indirectly, supported export-oriented businesses within Zimbabwe, serving as enablers to the generation of much-needed foreign exchange and easing of pressure on foreign currency, thereby boosting economic growth in the country.
He added that Afreximbank’s SME and trade finance interventions centred around financing, legal and regulatory frameworks, awareness and capacity building, services, and strategic partnerships.
“The US$150-million revolving trade finance facility will benefit several productive sectors in Zimbabwe, contributing to the country’s Vision 2030 aspiration: Towards a prosperous and empowered upper-middle-income society by 2030,” added Mr El Maayergi.
Speaking on the agreements, CBZ Bank Managing Director Valeta Mthimkhulu reiterated how through this agreement, CBZ is better positioned to deliver financing solutions that unlock opportunities for our clients across the spectrum.
“From exporters to small businesses, we are committed to enabling growth while contributing to key national priorities, including energy development,” she said.
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