CABS gets $10m loan from French firm

Business Reporter
PROPARCO, a French Development Finance Institution yesterday signed a five-year loan agreement for $10 million with CABS. Proparco, which also signed a $10 million loan agreement with NMBZ following three years of negotiations, is planning to offer more loans. Regional director of Agence Francaise de Development for Southern Africa who was representing Proparco, Mr Jean-Michel Debrat said the agreement was a sign of France’s willingness to engage Zimbabwe in trade on a long-term basis.

He said France was interested in doing business in the country despite the EU sanctions. Mr Debrat said the loan will allow CABS to finance expansion of its credit portfolio in a market where funding is only available on a short-term basis.

CABS managing director Mr Kevin Terry said the loan facility will help CABS offer comprehensive commercial banking services
to individuals, SMEs and corporate customers.

“Proparco’s loan will allow CABS to finance development of its credit portfolio and extend the maturity of its financing for Zimbabwean businesses as funding continues to be found on short-term basis. In a context of economic restructuring and multiple financing needs, such loan facilities will help the private sector to grow and support the development of the country,” said Mr Terry.

Foreign Affairs Deputy Minister Ambassador Christopher Mutsvangwa who also attended the loan signing ceremony said most French companies were showing a lot of interest in investing in the country and this was sending a strong signal to other investors all over the world.

He said the $10 million loan will go a long way in meeting the needs of the country in terms of social and environmental responsibility.
“This loan is a sign of trust in the country and in the bank itself. We are yet to overcome some reluctance internally but I am convinced that we have a good investment environment,” Ambassador Mutsvangwa said.

The two agreements underline growing French investment in Zimbabwe. Other French companies that have invested in Zimbabwe include Trafigura which bought a majority stake in Redan Petroleum. Trafigura is also planning another massive investment in the energy sector.

At the same time a French bank, Société Générale, recently extended a $120 million line of credit to CBZ bank for agricultural inputs.