Online Reporter
Debra Matabvu-Senior Reporter
Zimbabwe is set to receive US$1 million from the Arab Bank for Economic Development in Africa by March this year to boost various sectors of Micro, Small and Medium Enterprises across the country, it has been learnt.
This follows another tranche of US$1,29 million facility disbursed in December last year by the same financial institution to 29 MSMEs across the country.
Responding to questions from The Herald, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said he held high level talks with BADEA president Abdulla Almusaibeeh at the World Economic Forum in Davos, Switzerland recently, with the discussions cementing rapid expansion of cooperation between Zimbabwe and BADEA.
Some of the sectors set to benefit from the cooperation include infrastructure, energy, industrialisation and social development.
The institution has provided Zimbabwe with concessional financing, private sector support, trade promotion, technical assistance and capacity building dating back to the country’s independence and reaching a peak at the height of the Covid-19 pandemic.
The Ministry of Finance said the support to MSMEs is crucial as the sector has become an important pillar of the economic.
“This continued mutually beneficial relationship has also seen the country receiving massive support to its Micro, Small and Medium Enterprises (MSMEs),” the ministry said.
“In the year 2014, BADEA unveiled a US$3 million facility to the Small and Medium Enterprises Development Corporation (SMEDCO). As of December 2025, US$1,29 million has been disbursed to 29 MSMEs across various sectors. SMEDCO has demonstrated measurable impact, including job creation and rural inclusion.
“A second tranche request of US$1 million is under review by BADEA, with full disbursement expected by March 2026. With MSMEs contributing over 50 percent to GDP and employing 60 percent of the workforce, this facility remains a critical instrument for inclusive and sustainable economic growth ensuring the economic participation of a large section of the population.”
In addition, the Attorney-General’s Office is also reviewing a US$8,88 million loan request to increase Zimbabwe’s equity stake in Shelter Afrique from 1,25 percent to 5 percent.
The move seeks to ensure the expanded investment in housing and urban infrastructure in line with the country’s goals of becoming an upper middle income economy by 2030.
“Zimbabwe also formally approached BADEA in December 2024 with a US$8,88 million loan request to increase its equity stake in Shelter Afrique from 1,25 percent to 5 percent,” the ministry added.
“This strategic move aligns with Zimbabwe’s Vision 2030 goals of achieving upper- middle-income status through expanded investment in housing and urban infrastructure. The recapitalisation will unlock additional lines of credit for human settlements and improve Zimbabwe’s governance influence within Shelter Afrique.
“The loan agreement is presently being reviewed by the Attorney-General’s Office for legal opinion.”
