Companies

NMB secures US$25m multi-product facility from Proparco

October 30, 2024

Itai Ndongwe

HARARE – NMB Bank Zimbabwe Limited has secured a multi-product facility from Proparco, which includes a USD15 million credit line, a USD5 million EURIZ portfolio guarantee, and a USD5 million trade finance guarantee, with the facility aimed at SMEs, agriculture, women entrepreneurs, and local importing and exporting businesses.

The credit line will be committed to SME exporters in the agri-food sector and is eligible for the 2X Challenge, a programme spearheaded by various development finance institutions and international development banks to enhance women’s economic participation.

Furthermore, Proparco approved a USD 5 million EURIZ portfolio guarantee and a USD 5 million Trade Finance Guarantee for NMB to cover the risks associated with financing small and medium-sized enterprises (SMEs) in Zimbabwe, with a particular emphasis on the agriculture sector and women-owned businesses.

Speaking at the signing ceremony, NMBZ Holdings CEO Gerald Gore said, “Our partnership with Proparco has stood the test of time. This line of credit reaffirms our shared focus on growth, sustainability, and overall contribution to the development of the Zimbabwean economy. The facility provides much-needed support to our exporting entities to retool and for working capital support to compete effectively in the global arena.

“The line 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”.

The trade finance guarantee will strengthen NMB’s capacity to support local businesses that import essential goods, such as food and agricultural inputs, and it aims to address the lack of access to medium- and long-term USD-denominated finance, risk constraints associated with certain high-impact sectors and segments, and difficulties accessing confirming lines required for trade finance activities, which several Zimbabwean financial institutions have encountered.

Regional Director for Southern Africa at Proparco, Steven Gardon, said, “We are very pleased to be working once again with NMB, a Proparco client since 2014, in supporting a range of high- impact sectors and segments in Zimbabwe. This financing aligns 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”.

These projects will help to achieve the following SDGs: SDG 5 (gender equality), SDG 8 (decent work and economic growth), and SDG 10 (reduced inequalities).

Proparco, a subsidiary of the Agence Française de Développement Group, has been collaborating with the private sector for more than 45 years to create a more just and sustainable world. With a global network of 23 local offices, Proparco collaborates with partners to provide long-term solutions to environmental and socioeconomic concerns across Africa, the Middle East, Asia, and Latin America.

Proparco benefits from sector-specific expertise as well as a diverse range of financial solutions tailored to the various stages of business development, particularly through its Digital Africa subsidiary and its Propulse technical assistance offering, which is designed to increase the impact and performance of its partners. Proparco’s new “Acting Together for Greater Impact” Strategy 2023-2027 facilitates, enhances, and expands the various ways in which it collaborates with its partners.