Online Reporter
Michael Tome
Business Reporter
THE People’s Own Savings Bank has secured two loan facilities worth US$20 million from the African Export-Import Bank to strengthen financing for small and medium enterprises and businesses involved in export and trade activities.
The loan facilities are expected to improve access to working capital and trade finance for local businesses seeking to expand their operations and participate more actively in regional and international markets.
Speaking at the third edition of the POSB Exporters Seminar, POSB chief executive officer Mr Garainashe Changunda said the bank had secured a US$10 million line of credit from Afreximbank specifically to support qualifying SMEs operating within the export value chain.
The bank also secured a separate US$10 million trade finance facility from Afreximbank to support qualifying import, export and other trade-related transactions.
Mr Changunda said the trade finance facility would provide structured working-capital support through instruments such as letters of credit and international guarantees, helping businesses meet time-sensitive payment obligations and maintain continuity across their operations and supply chains.
“Of particular significance is the US$10 million line of credit obtained from Afreximbank to support qualifying SMEs operating in the export value chain,” said Mr Changunda.
The loans are meant for enterprises that are already exporting or can demonstrate a clear linkage to the export value chain, widening the pool of businesses that can access formal export financing.
They complement POSB’s existing lending products, including pre- and post-shipment finance, working-capital facilities and asset finance.
Pre-shipment finance enables exporters to secure inputs and prepare consignments for shipment, while post-shipment finance helps bridge the cash-flow gap between the dispatch of goods and receipt of payment from buyers.
Beyond lending, POSB is strengthening its international banking services to support businesses engaged in cross-border trade.
The services include multi-currency and FCA export accounts, incoming and outgoing telegraphic transfers, export-document administration and exchange-control advisory services.
The bank also advises on export letters of credit and facilitates international guarantees and documentary collections, allowing exporters to better manage cross-border payment and performance risks.
Mr Changunda, however, said access to finance had to be matched by business readiness, urging exporters to put their financial and operational affairs in order before approaching financial institutions.
He said businesses should maintain reliable financial records, understand their cash-flow cycles, demonstrate clear routes to market and comply with applicable standards.
Exporters were also encouraged to approach the bank early when seeking funding so that their financing requirements could be properly assessed and structured.
The seminar, held under the theme “Accessible Export Finance: Powering Businesses Beyond Borders,” brought together Government, financial institutions and the private sector to deliberate on ways of financing production and building enterprises capable of competing in international markets.
The financing push comes as Zimbabwe continues to seek greater export diversification and value addition, with access to affordable and appropriately structured finance remaining critical for businesses seeking to move from domestic production into export markets.
