Online Reporter
Business Reporter
CBZ Holdings has secured a US$170 million line of credit from Afreximbank, with US$80 million in new funding earmarked for productive sectors, including a dedicated US$20 million tranche for small and medium-sized enterprises (SMEs), group chief executive officer Lawrence Nyazema has said.
The facility comes as the banking group positions itself as a lead arranger for two major gold mining projects, underscoring a significant mobilisation of domestic capital for the extractive sector.
Mr Nyazema said the Afreximbank facility addresses longstanding criticisms that the financial services sector has not adequately supported SMEs. “There’s been the usual complaint that the financial services sector doesn’t support SMEs to the full extent we should,” he said. “So that’s part of what we will be doing.” The remaining US$150 million from the facility will be channelled towards other productive sectors of the economy.
In a notable show of local financial muscle, Mr Nyazema confirmed that CBZ, acting as a lead arranger for the Shamva gold project, had raised US$100 million locally, exceeding an initial target of US$75 million. The project, which is expected to become the country’s largest gold mine, had sought a total of US$150 million. “We are oversubscribed locally, a huge sign of support from Zimbabwean banking institutions,” Mr Nyazema said.
He revealed that the Africa Finance Corporation (AFC) was originally set to provide a US$75 million external package. However, the success of the domestic fundraising has reduced the required external component to US$50 million.
CBZ, alongside Standard Bank, has also been appointed as joint lead arranger for the Caledonia Bilboes gold project, which requires a further US$150 million. Mr Nyazema expressed confidence that this sum could also be raised domestically. “Already US$80 million is spoken for, so we are left with the balance,” he noted, adding that another successful bond issuance is anticipated.
The announcements were made in remarks that also highlighted the growing capacity of Zimbabwean financial institutions to fund large-scale capital projects, reducing reliance on international lenders.
