CAIRO, Egypt (XOL Africa) — The African Export-Import Bank (Afreximbank) has concluded a package of financing facilities worth $190 million for Zimbabwe’s CBZ Bank Limited to expand trade finance, support small and medium-sized enterprises and strengthen the country’s electricity sector.
The agreements were signed in El Alamein, Egypt, by Afreximbank Executive Vice President for Global Trade Bank Haytham Elmaayergi and CBZ Bank Managing Director Valeta Mthimkhulu.
The largest component of the package is a $150 million revolving trade finance facility that will enable CBZ Bank to provide funding and letters of credit to businesses across Zimbabwe, helping to address trade finance constraints faced by companies engaged in regional and international commerce.
The financing package also includes a $20 million dual-tranche facility to increase lending to small and medium-sized enterprises involved in trade and related sectors. Afreximbank said the facility is intended to strengthen CBZ Bank’s capacity to provide financing and business support to SMEs, which play a key role in Zimbabwe’s economy.
A further $20 million dual-tranche on-lending facility will support power sector investments by positioning CBZ Bank to participate in an approved $210 million syndicated financing arrangement for the Zimbabwe Electricity Transmission and Distribution Company. The funding is expected to contribute to reducing electricity shortages and improving power stability in Zimbabwe and the Southern African Development Community (SADC) region.
Haytham Elmaayergi said the financing facilities are designed to stimulate economic activity by supporting export-oriented businesses and improving access to trade finance.
“These facilities directly and indirectly support export-oriented businesses in Zimbabwe, enabling the generation of much-needed foreign exchange and easing pressure on foreign currency, thereby boosting economic growth,” Elmaayergi said.
He said Afreximbank’s interventions in trade and SME financing extend beyond lending to include support for legal and regulatory frameworks, capacity building, awareness initiatives and strategic partnerships.
“The $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,” he added.
CBZ Bank Managing Director Valeta Mthimkhulu said the agreements would strengthen the bank’s ability to meet the financing needs of businesses across key sectors of the economy.
“Through this agreement, CBZ is better positioned to deliver financing solutions that unlock opportunities for our clients across the spectrum,” Mthimkhulu said. “From exporters to small businesses, we are committed to enabling growth while contributing to key national priorities, including energy development.”
The latest financing package builds on Afreximbank’s efforts to expand access to trade finance across Africa as the lender continues to support member countries with funding aimed at boosting intra-African trade, industrialization and infrastructure development.
