Online Reporter
Business Reporter
British International Investment, the UK’s development finance institution, has announced a combined US$50 million funding for Zimbabwe’s agricultural sector, with US$30 million going to CABS and US$20 million to NMB Bank under its new Agriculture Finance Programme.
The facilities are intended to address structural financing gaps facing agriculture and food manufacturing exporters, particularly limited access to long-term US dollar funding and trade finance.
The loan facility from the development finance institution represents a highly symbolic breakthrough for Zimbabwe’s international re-engagement drive under the Second Republic.
BII’s US$50 million injection into CABS and NMB Bank signals that calculated, direct financial engagement with the Zimbabwean private tier-one financial institutions is now viable and strategically sound.
British development finance returned to Zimbabwe in July 2024 when BII extended a US$10 million loan facility to NMB Bank Zimbabwe, the first in over 13 years.
The CABS partnership, BII’s first with the institution, consists of a US$20 million Term Loan Facility signed today and a planned US$10 million Trade Finance Facility.
The NMB Bank commitment, which doubles BII’s 2024 facility, comprises a US$10 million directed lending facility signed for yesterday and a planned US$10 million trade finance facility.
Eligible goods include fertiliser, food commodities, agricultural commodities, machinery and inputs and other approved productive equipment.
Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu welcomed the CABS–BII facility as a direct response to one of the most binding constraints on private sector expansion — access to affordable medium- and long-term financing.
He said it would support agriculture, food processing, clean energy and sustainable production systems, which he described as instrumental to food and energy security, value addition and growth.
“Productive investment requires financing that matches the investment cycle,” Dr Mushayavanhu said.
“Farmers, processors and manufacturers need time to acquire machinery, expand capacity, build supply chains and penetrate regional and international markets. Short-term funding cannot support long-term transformation.”
The governor noted that the four-year tenor went beyond short-term needs.
He said the transaction complemented Zimbabwe’s reform effort by helping to bridge financing gaps in sectors with high growth, employment and foreign exchange generation potential. It also reinforced the country’s participation in global value chains, he said.
He commended BII for sustaining momentum on international engagement, adding that the catalytic role played by development finance institutions could not be underestimated, as they deploy long-term capital on flexible tenors, share risk and apply strong standards in governance and environmental and social safeguards.
Such standards, he said, strengthened borrowers and financial intermediation and supported confidence.
Dr Mushayavanhu stressed that offshore lines of credit should be deployed responsibly and transparently, in full compliance with know-your-customer and anti-money laundering and counter-financing of terrorism requirements.
He said participating institutions were expected to maintain robust credit appraisal, sound risk management and effective monitoring.
He called on CABS to translate the partnership into accessible and appropriately priced financing for deserving enterprises across the agriculture and food manufacturing value chain. He also encouraged beneficiaries to use the resources productively, uphold high standards of governance and repay responsibly, so that the facility could generate a lasting demonstration effect.
CABS managing director, Mr Mehluli Mpofu, said the partnership would strengthen the bank’s capacity to provide financing and trade solutions.
“These sectors are important to Zimbabwe’s productive economy and have significant potential to support growth and exports,” he said.
“This partnership will strengthen our capacity to provide businesses with the financing and trade solutions they need to expand their operations, increase production and access markets.”
NMB Bank chief executive officer, Mr Gerald Gore, said the first BII facility had shown what focused long-term finance could achieve.
It supported Zimbabwean businesses, helped agricultural exporters expand production and financed practical investments in renewable energy and efficient irrigation.
“The new US$20 million facility allows us to build on that record. By combining five-year direct lending with trade finance, we can support customers across the investment and trading cycle from working capital and productive assets to processing infrastructure and the movement of goods,” he said.
Maria Smith, BII’s chief investment officer and Acting chief impact officer, said frontier markets such as Zimbabwe were central to BII’s new five-year strategy because that is where its capital can have the greatest impact.
“We’re pleased to partner with NMB Bank again, this time to expand access to the long-term capital and trade finance that businesses need to invest, grow and create jobs,” she said. “This investment is helping to strengthen local financial institutions and demonstrate the opportunities that exist for investors in Zimbabwe’s productive sectors.”
Mr Jo Abbot, Acting British Ambassador to Zimbabwe, said the partnerships highlighted the growing role of UK-backed investment in supporting economic growth, strengthening Zimbabwe’s financial sector and increasing access to finance for businesses that underpin trade and agricultural development.
CABS, one of Zimbabwe’s leading financial institutions, has operated for over 75 years in the country and is a wholly owned subsidiary of Old Mutual Zimbabwe Limited. NMB Bank is a commercial bank and principal subsidiary of NMBZ Holdings Limited, listed on the Zimbabwe Stock Exchange.
The facilities are expected to contribute to United Nations Sustainable Development Goal 2 on Zero Hunger, SDG 8 on Decent Work and Economic Growth, SDG 9 on Industry, Innovation and Infrastructure, and SDG 13 on Climate Action.
