Harare, Zimbabwe – The African Development Bank (AfDB) and NMB Bank Limited Zimbabwe have announced a significant $15 million Trade Finance Transaction Guarantee Facility aimed at energizing Zimbabwe’s small and medium-sized enterprises (SMEs) and agribusiness sectors. The agreement, signed on March 7, 2024, at NMB Bank’s headquarters in Harare, is a key move to enhance the trade finance opportunities for businesses within the country, especially those in the agri-business and trade distribution value chains.
The facility’s announcement was marked by the presence of key figures, including Moono Mupotola, the AfDB’s Country Manager, and Gerald Gore, CEO of NMB Bank. The facility, approved by the AfDB’s board in November 2023, promises to provide up to 100% coverage to confirming banks, thereby mitigating the non-payment risks associated with NMB Bank’s trade transactions.
Mupotola emphasized the AfDB’s dedication to supporting the development of Zimbabwe’s private sector, stating, “This initiative represents a significant step forward in supporting the growth and competitiveness of Zimbabwean businesses. By reducing risk and making trade finance more accessible, we’re empowering SMEs and local corporates to engage more actively in regional and international markets.”
This move comes as a direct response to the challenges often faced by SMEs in accessing trade finance, with the aim of creating a more vibrant and inclusive business environment in Zimbabwe. Gerald Gore highlighted the importance of the facility for economic growth, noting that it “will be instrumental in enabling NMB to provide crucial trade finance support to a wider range of Zimbabwean businesses, unlocking new trade opportunities and contributing to job creation and economic growth.”
The trade finance facility is in line with the Bank’s country strategy paper for Zimbabwe for the years 2024-2026, which prioritizes private sector development. It also aligns with several priorities of the Zimbabwe Vision 2030, aiming to transform Zimbabwe into a prosperous and empowered upper-middle-income society by 2030.
This strategic partnership between the African Development Bank and NMB Bank Limited Zimbabwe marks a significant milestone in the effort to boost Zimbabwe’s economy by supporting its SMEs and agribusinesses, enabling them to play a more active role in regional and international trade arenas.