Online Reporter
Business Reporter
NMB Bank has secured a new $20 million funding facility from British International Investment (BII) to support Zimbabwe’s agricultural sector and broader trade finance needs, building on a successful initial partnership.
The announcement was made during a signing ceremony in Harare, marking a significant expansion of BII’s commitment to the Zimbabwean market. The new line of credit follows an initial $10 million investment deployed in 2024.
Addressing delegates, NMB Bank Chief Executive Officer Gerald Gore said the initial investment had been fully utilised within two months, demonstrating the high demand for capital in the sector. He noted that 95 percent of the first facility was directed into horticulture, supporting the production of blueberries, cucumbers, avocados, macadamia, citrus, and flowers for export to the United Kingdom, Europe, and beyond.
Mr Gore highlighted the tangible impact of the first tranche, stating that beneficiary businesses had generated exports in excess of $30 million. He added that two specific businesses alone had grown their combined workforce by 700 people, with women comprising between 50 percent and 80 percent of the employees in supported distribution networks.
“This was never just about money,” Mr Gore said. “It was about productive transformation and climate resilience in the agricultural sector.”
The new $20 million facility is structured in two parts. The first is a $10 million, five-year direct lending component focused on agriculture and food manufacturing. It includes a strong climate and sustainability formula covering renewable energy, climate-smart agriculture, and efficient storage and irrigation infrastructure. The second is a $10 million trade finance facility designed to support shorter-term working capital requirements for import and export activities.
Mr Gore praised BII for the technical assistance accompanying the relationship, which he said had helped NMB build internal capacity in climate risk, green lending, and impact measurement.
BII Chief Investment Officer Maria Smith reiterated the institution’s commitment to frontier markets. She noted that BII has committed to directing 25 percent of its capital to least developed countries, citing Zimbabwe as a market with strong entrepreneurial talent and growth potential, despite persistent financing gaps.
“Zimbabwe is the exact kind of market where we believe development finance can have the biggest development impact,” Ms Smith said.
She identified agriculture as a critical sector for job creation and food security but noted that businesses often struggle to access long-term capital. To address this, BII is launching the Zimbabwe Agricultural Finance Programme, which combines long-term capital, trade finance, and technical assistance to strengthen local institutions.
Ms Smith indicated that while the programme will start with agriculture, BII intends to explore other sectors in the future, viewing the partnership with NMB as a continued evolution.
The facility is expected to provide much-needed liquidity to Zimbabwean businesses navigating a challenging economic environment, with a focus on fostering sustainable growth and regional trade integration.
