Story by Stanley James, Business Editor
Zimbabwe’s export growth agenda has received a major boost after Afreximbank signed a US$80 million trade facility with CBZ Bank, amid expectations of affordable loans for industry and commerce.
A copy of the agreement released this Friday shows that the deal signed in the Bahamas has a period of three years, with an option to roll over for another two years.
Confirming the latest development, CBZ Group Chief Executive Officer Mr Lawrence Nyazema revealed the importance of the agreement in increasing exports and helping the productive sectors on trade financing requirements.
“US$60 million is for prime exports and SMEs with supply export value chains across the key sectors of the economy requiring finance for capital expenditure for the asset or machinery acquisition and working capital to facilitate inventory, supply chains, pre-export and boost export business activities in Zimbabwe,” he said.
The facility is targeted at export-oriented sectors such as mining, agriculture, and SMEs, among others.
“A US$20 million Afreximbank Trade Facilitation Programme Facility is also being designated to the issuance of Guarantees and letters of credit,” he added.
University of Zimbabwe Business School lecturer Dr Nyasha Kaseke said the sustainability of trade and industrial facilities will depend on banks offering affordable loans.
“This is what is being needed based on the ability of the economy to boost exports. I hope that CBZ will also come up with affordable loans to ensure that the industry and commerce can even increase their production capacities,” he noted.
The 2024 Monetary Policy statement notes that while banks are cautious to lend fearing huge default rates, the need to come up with affordable loan facilities will increase economic activities and accelerate growth.
