Proparco has committed to three financial facilities in partnership with NMB Bank Limited, based in Zimbabwe’s capital, Harare.
This initiative includes a USD 15 million credit facility, a USD 5 million EURIZ portfolio guarantee, and a USD 5 million trade finance guarantee.
Together, these funds aim to support small and medium-sized enterprises (SMEs), especially in the agriculture sector. They will also focus on women-owned businesses and local companies involved in import and export.
The USD 15 million credit facility from Proparco will be dedicated to SME exporters in Zimbabwe’s agri-food sector. This support aligns with the 2X Challenge, a global initiative promoting women’s economic empowerment in various developing countries.
The credit facility receives backing from the European Union’s EFSD+ MSME Plus Platform, which helps boost finance access for SMEs in agriculture.
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Boost for Women and Agriculture
In addition, Proparco has approved a EURIZ portfolio guarantee of USD 5 million and a USD 5 million trade finance guarantee for NMB Bank.
The EURIZ guarantee, also backed by the EU, will reduce the risk associated with financing Zimbabwean SMEs, focusing on agriculture and women-led businesses.
The trade finance guarantee will increase NMB’s capacity to support local businesses that import vital goods, including food and agricultural products.
Zimbabwean banks often struggle to support economic growth due to limited access to USD-denominated funding and risk constraints.
They also face challenges accessing confirmation lines needed for trade finance. Proparco’s approach offers liquidity and risk-sharing, which helps NMB Bank reach more customers and expand its services.
The partnership between NMB Bank and Proparco was formalized at a signing ceremony in Harare on October 30, 2024. Senior representatives from both organizations attended, along with the French and EU Ambassadors to Zimbabwe and the Reserve Bank Governor.
Proparco Empowering Women Entrepreneurs, SMEs, and the Agricultural Sector
Gerald Gore, CEO of NMBZ Holdings, commented, “Our partnership with Proparco has stood the test of time. This facility reaffirms our shared focus on growth, sustainability, and overall contribution to the development of the Zimbabwean economy.
The facility provides the much-needed support to our exporting entities to retool and for working capital support in order to compete effectively on the global arena.
The facility comes at a time NMB Bank has been working on growing its agribusiness sector and a specific focus to support women-run businesses, the youth, and businesses that enhance social services.”
Steven Gardon, Proparco’s Regional Director for Southern Africa, expressed satisfaction with the ongoing collaboration.
This facility is fully in line with our strategic priority of investing in a sustainable and resilient economy. We are also very proud of NMB’s focus on strengthening the economic role of women.”
This partnership aligns with key Sustainable Development Goals (SDGs) such as SDG 5 (gender equality), SDG 8 (decent work and economic growth), and SDG 10 (reduced inequalities).
The combined efforts of Proparco, NMB, and the EU highlight a strong commitment to Zimbabwe’s sustainable economic growth and social advancement.