Online Reporter
Business Reporter
Reserve Bank of Zimbabwe Governor Dr John Mushayavanhu has welcomed a US$30 million facility signed between CABS and British International Investment (BII), describing it as a direct response to one of the most binding constraints on private sector expansion — access to affordable medium- and long-term financing.
Addressing the signing ceremony, Dr Mushayavanhu said the facility would support business alongside new financing for agriculture, food processing, clean energy and sustainable production systems, which he said were instrumental in the country’s efforts to ensure food and energy security, promote value addition and drive growth.
He said the central bank positively noted the four-year tenor of the facility, which he said went beyond the short term to meet longer-term financing needs.
“This is particularly important, as productive investment requires financing that matches the investment cycle. Farmers, processors and manufacturers need time to acquire machinery, expand capacity, build supply chains and penetrate regional and international markets,” he said.
“Short-term funding cannot support long-term transformation.”
Dr Mushayavanhu said the transaction complemented the country’s reform effort by helping to bridge attendant financing gaps in sectors with high growth, employment and foreign exchange generation potential. It also reinforced Zimbabwe’s participation in global value chains, he said.
He commended BII for sustaining momentum on international engagement efforts, 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 said the Reserve Bank recognised the importance of offshore lines of credit in augmenting domestic resources, but stressed that such facilities should be deployed responsibly and transparently, and in full compliance with know-your-customer and anti-money laundering and counter-financing of terrorism requirements.
“We expect participating institutions to maintain robust credit appraisal, sound risk management and effective monitoring,” he said.
The Governor said the partnership should support Zimbabwe’s growth in a way that remained inclusive and sustainable, citing responsible water and energy use, stronger participation by women and young entrepreneurs, and deeper value chains connecting smallholder farmers and processors.
“I therefore call upon CABS to translate this partnership into accessible and appropriately priced financing for deserving enterprises across the agriculture and food manufacturing value chain,” he said.
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.
Earlier, Dr Mushayavanhu welcomed the partnership between CABS and BII, describing it as a classic case of patient capital being deployed through a domestic financial institution to support investment and build capacity to create jobs.
He said the partnership spoke directly to the central bank’s mandates, including preserving financial stability, and that macroeconomic stability was not an end in itself but had to translate into the mobilisation of savings through the financial markets, and ultimately into improved access to finance for all sorts of businesses.
“It is such institutions that mobilise capital for development and support productive sectors,” he said.
