Afreximbank Injects $190 Million into Zimbabwe’s Key Economic Pillars for Growth and Stability

El Alamein, Egypt – In a move set to invigorate Zimbabwe’s economic landscape, the African Export-Import Bank (Afreximbank) has finalized a comprehensive financing package totaling US$190 million for CBZ Bank Limited. This strategic investment aims to bolster critical sectors, including trade, small and medium enterprises (SMEs), and energy infrastructure, aligning with the nation’s ambitious growth agenda.

The agreement, signed in El Alamein, Egypt, by Haytham Elmaayergi, Executive Vice President of Afreximbank’s Global Trade Bank, and Valeta Mthimkhulu, Managing Director of CBZ Bank Limited, comprises three distinct facilities designed to enhance CBZ Bank’s capacity to deliver essential financial products across Zimbabwe’s economy.

Fueling Trade and Foreign Exchange Generation

The cornerstone of this package is a US$150-million revolving trade finance facility. This significant injection will empower CBZ Bank to provide crucial funding and letters of credit support to Zimbabwean companies, effectively bridging the trade finance gap that often impedes economic expansion across Africa. For Zimbabwe, this facility is particularly vital as it directly supports export-oriented businesses, serving as an enabler for the generation of much-needed foreign exchange and easing pressure on local currency markets. Afreximbank’s Mr. Elmaayergi noted that this facility will benefit several productive sectors, contributing directly to Zimbabwe’s Vision 2030 aspiration of becoming a prosperous, upper-middle-income society.

Empowering SMEs for Sustainable Development

Recognizing the pivotal role of SMEs in job creation and economic diversification, a US$20-million dual-tranche SME finance facility has been established. This component will strengthen CBZ Bank’s capability to offer targeted financing solutions and capacity-building initiatives to SMEs engaged in trade and other related activities. Such support is crucial for fostering entrepreneurship and ensuring inclusive economic growth, particularly in an economy seeking robust recovery and expansion.

Strengthening Energy Security for National and Regional Stability

Addressing one of Zimbabwe’s most pressing infrastructure challenges, a further US$20-million dual-tranche on-lending facility has been agreed upon. This facility is specifically aimed at reducing power deficits and enhancing electricity stability not only within Zimbabwe but also across the broader Southern African Development Community (SADC) region. It strategically positions CBZ Bank to participate in an approved US$210-million syndicated dual-tranche facility for the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), underscoring the collaborative effort to secure reliable energy – a fundamental prerequisite for industrial growth and improved quality of life.

Valeta Mthimkhulu, Managing Director of CBZ Bank, reiterated the transformative potential of these agreements: “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.”

Mr. Elmaayergi further emphasized that Afreximbank’s interventions in SME and trade finance are holistic, encompassing not only financing but also legal and regulatory frameworks, awareness, capacity building, services, and strategic partnerships, reflecting a comprehensive approach to fostering economic vitality.

Afreximbank’s Pan-African Mandate in Action

This substantial commitment to Zimbabwe exemplifies Afreximbank’s broader mandate as a Pan-African multilateral financial institution dedicated to financing and promoting intra- and extra-African trade. With over three decades of experience, the bank has been instrumental in deploying innovative financial structures to support the transformation of Africa’s trade landscape, accelerating industrialization and intra-regional commerce. As a staunch advocate for the African Continental Free Trade Agreement (AfCFTA) and the architect of the Pan-African Payment and Settlement System (PAPSS), Afreximbank continues to play a pivotal role in driving continent-wide economic expansion.