Nqobile Bhebhe [email protected]
THE Arab Bank for Economic Development in Africa (BADEA) has signed a declaration of intent with CBZ Bank to establish a proposed US$50 million trade finance facility, in a move expected to widen access to funding for Zimbabwean businesses and strengthen productive sector growth.
The agreement was signed on the sidelines of the World Bank Group and International Monetary Fund (IMF) Annual Meetings in Bangkok, Thailand, last week, bringing together the development finance institution and one of Zimbabwe’s leading banking groups to advance trade financing opportunities for eligible businesses.
CBZ Bank managing director Ms Valeta Mthimkhulu and BADEA president Mr Abdulla Khalil Al-Musaibih signed the declaration on behalf of their respective institutions.
The proposed facility is expected to support trade activities and productive sectors, potentially improving access to financing for businesses seeking to expand operations, procure inputs, develop export markets and participate in regional and international commerce.
In a statement published on its X account, BADEA said: “The Statement of Intent paves the way for a proposed US$50 million trade finance facility from BADEA to CBZ Bank, aimed at expanding access to financing for eligible businesses and supporting trade activities and productive sectors in Zimbabwe, subject to the completion of the required procedures and documentation.
“This initiative reflects BADEA’s commitment to promoting trade and private sector development across Africa, while contributing to economic diversification, export promotion, import substitution, and sustainable growth in Zimbabwe’s key productive sectors.”
The declaration of intent signals progress towards establishing the facility, although the proposed financing remains subject to the completion of the required procedures and documentation.
Trade finance for Zimbabwe is an important instrument for bridging working-capital gaps, particularly where companies need funding to purchase raw materials, import machinery and equipment, meet orders or finance cross-border transactions before receiving payment from customers.
Expanding access to such facilities could help viable businesses manage trade-related cash-flow pressures while supporting domestic production, export development and the substitution of selected imports with locally manufactured goods.
The proposed arrangement also comes as Zimbabwe seeks to deepen private sector participation in economic growth, increase industrial capacity and strengthen the competitiveness of local producers in regional markets.
BADEA already supports several sectors in Zimbabwe, including infrastructure, agriculture, energy, water and trade. Its activities also extend to social sectors such as education, housing and healthcare.
