Afreximbank Provides $190 Million Boost to Zimbabwe's CBZ Bank

The package is expected to enhance access to credit for businesses while supporting the country's broader economic growth and development goals.

The African Export-Import Bank (Afreximbank) has signed financing agreements worth US$190 million with CBZ Bank Limited to expand trade finance, strengthen support for small businesses and improve energy infrastructure financing in Zimbabwe. The package is expected to enhance access to credit for businesses while supporting the country's broader economic growth and development goals.

The agreements were signed in El Alamein, Egypt, by Afreximbank Executive Vice President for Global Trade Bank Haytham Elmaayergi and Valeta Mthimkhulu, Managing Director of CBZ Bank Limited.

Trade finance to support businesses

The largest component of the package is a US$150 million revolving trade finance facility that will allow CBZ Bank to provide trade financing and letters of credit to companies across Zimbabwe. The facility is designed to help close Africa's trade finance gap by improving businesses' access to funding for imports and exports.

Elmaayergi said the financing would directly and indirectly support export-oriented businesses, helping them generate foreign exchange and ease pressure on the country's foreign currency resources. He added that the facility would benefit several productive sectors while contributing to Zimbabwe's Vision 2030 goal of becoming an upper-middle-income economy.

More support for small businesses

Afreximbank has also approved a US$20 million dual-tranche SME finance facility to strengthen CBZ Bank's ability to finance small and medium-sized enterprises engaged in trade and related activities.

The facility will expand access to financing while also supporting capacity-building initiatives for SMEs, helping more businesses grow, improve productivity and participate in regional and international trade.

Elmaayergi noted that Afreximbank's SME strategy extends beyond lending and includes strengthening legal and regulatory frameworks, improving awareness, providing business support services and building strategic partnerships.

Energy financing to improve power stability

The two institutions also signed a US$20 million dual-tranche on-lending facility to support energy projects aimed at reducing electricity shortages and improving power reliability in Zimbabwe and the wider Southern African Development Community (SADC) region.

The funding positions CBZ Bank to participate in an approved US$210 million syndicated dual-tranche facility for the Zimbabwe Electricity Transmission and Distribution Company, supporting investments that are expected to strengthen the country's electricity network.

CBZ Bank Managing Director Valeta Mthimkhulu said the agreements would enable the bank to deliver a broader range of financing solutions to exporters, small businesses and other clients while supporting national priorities, including energy development and economic growth.