NEW: CBZ, Afreximbank sign deal to support local firms

Business Reporter

CBZ Bank and the African Export-Import Bank (Afreximbank) yesterday signed a US$80 million facility to support Zimbabwe’s productive sectors.

In a joint statement on Thursday, Afreximbank executive vice president (Global Trade Bank) Mr Haytham El Maayergi and CBZ Bank acting managing director Mrs Smangele Mandidi said the facility will run for three years, with an option to extend for another two years.

The US$80 million facility, signed in the Bahamas, is divided into two primary segments, with US$60 million allocated to prime exporters and small to medium-sized enterprises (SMEs) within the export value chain.

A substantial amount of the funding will be used for capital expenditures such as acquiring essential assets and machinery, alongside providing working capital to manage inventory, supply chains and both pre-export and post-export activities.

This targeted support is pivotal for the continued growth and modernisation of Zimbabwe’s vital sectors which include mining, agriculture and manufacturing.

The remaining US$20 million is dedicated to the Afreximbank Trade Facilitation Programme Facility (AFTRAF), a non-funded line of credit intended to issue guarantees and letters of credit.

AFTRAF primarily supports importers, benefiting both SMEs and large corporations.

Such an initiative is closely aligned with the goals of the African Continental Free Trade Agreement (AfCFTA), which aims to promote regional economic integration across Africa.

This facility is designed to integrate Zimbabwe more deeply into the continental trade framework by leveraging AfCFTA’s trade finance products and services.

Commenting on the deal, Banker Raymond Madziva said: “The partnership between Afreximbank and CBZ Bank represents a significant boost for Zimbabwe’s financial sector. The three-year tenure, with an option to extend, provides stability and confidence for our businesses to plan and expand.

“It addresses both capital expenditure and working capital needs, ensuring that our key sectors have the financial resources to upgrade machinery, manage inventories, and scale their operations effectively.”