The African Development Bank (AfDB) is mobilizing a $15-million funding package to support intra-African trade and commerce in Zimbabwe.
The funding package features a trade finance line of credit and a transaction guarantee each to the tune of $7.5 million. Aimed at supporting the goals of the African Continental Free Trade Area – a free trade area established on the continent in 2018 – the funding is expected to stimulate approximately $146 million in trade within the next three years.
“The facility is expected to support the importation of strategic commodities and promote the integration of Zimbabwe’s economy into regional and global trade markets, which are essential for the country’s growth,” said AfDB Zimbabwe Country Manager, Moono Mupotola.
Zimbabwean commercial bank First Capital Bank will utilize the line of credit to close its finance gap, while increasing its trade finance support for local SMEs and corporate institutions in the country. Additionally, the transaction guarantee provides a 100% guarantee to international confirming banks for non-payments risk taken on the institution’s transactions. Specifically, this pertains to transactions taken by SMEs and women-owned businesses.
“We are thrilled about the growth prospects that this $15-million facility will unlock for the business communities driving our economy. The package aims to bolster our trade finance services in Zimbabwe, across Africa and globally,” stated First Capital Bank CEO Tapera Mushoriwa.
