EIB extends €12.5m to NMB

LIVINGSTONE MARUFU

One of the leading financial services providers, NMB Bank Limited has received a €12.5m line of credit from European Investment Bank (EIB) for on lending to Zimbabwean exporting companies a move meant to boost capacity of local firms.

The loan facility which has tenure of seven years will be availed in United States dollar through the existing NMB branch network and will be in the form of short, medium or long term.

The resource envelope is part of the Zimbabwe Private Sector Facility from the Impact Finance Envelope of Investment Facility which is extended by EIB to a group of financial institutions located in Zimbabwe.

The deal follows a similar package signed by EIB and First Capital Bank on Tuesday  in Harare and €15M deal signed with CABS last year.

Speaking at the signing ceremony held in Harare Wednesday (today), NMB CEO Gerald Gore said the deal helps all exporters to increase exports in all productive sectors.

“The market has been starved of long term, fairly priced offshore credit facilities. This type of funding is key for our industries to retool, invest in new technologies and keep abreast with international trends in order to compete on the global arena,” Gore said.

“The line comes at a time NMB Bank has been working on growing its Agribusiness as well as the Portfolio of exporters, both, which play a critical role in the country’s economy. The Bank is working on supporting the private sector including exporters in key areas of the economy with the right type of funding.”

He said the bank’s focus for this line was to fund agriculture, horticulture and manufacturing exporting clients.

“The facility is not necessarily restricted to current NMB Bank customers, but open to exporters who want to scale up production and even new companies that are export-oriented. The intention is to complement the government’s efforts to promote exports and boost the country’s economy,” Gore said.

EIB Regional Representation for Southern Africa and Indian Ocean head  Jim Hodges said the 27 nation investment bloc will continue supporting  exporters in agriculture, manufacturing and SMEs.
“The European Investment Bank is committed to working with local financial partners to enhance access to finance by Zimbabwean entrepreneurs and businesses.   Unlocking investment is crucial to enable business expansion and address economic challenges enhanced by Covid-19.

As part of Team Europe, the European Investment Bank is pleased to provide EUR 12.5m  of new targeted financing to NMB that will strengthen private sector investment, create jobs and accelerate the post-pandemic recovery of Zimbabwe. Today’s new agreement demonstrates how Team Europe and African partners are joining forces to back business growth,” he said.

Agriculture, Private Sector and Trade, European Union Delegation to Zimbabwe head Bernard De Schrevel said the Zimbabwean economy  has received a timely boost.

“Given the challenging economic environment we are pleased that more support will be locally available. The Zimbabwean private sector plays a big role in supporting employment, food security and access to export markets. Therefore, support for financial institutions and private sector enterprises creates an opportunity that has a significant impact on the lives of many citizens.”  De Schrevel said.

EIB is the long-term lending institution of the European Union owned by its Member States.

It makes long-term finance available for sound investment in order to contribute towards EU policy goals.