British International Investment avails US$30m to CABS

STAFF WRITER
CABS has secured a US$30m financing package from British International Investment (BII) to expand lending to Zimbabwe’s productive sectors, Business Times can report.
The facility comprises a US$20m term loan and a planned US$10m trade finance facility, with the funding targeting agricultural commodities, food manufacturing, exporters, productive equipment and machinery.
The financing comes as Zimbabwe seeks to deepen access to affordable, longer-term capital for businesses while directing more credit towards productive sectors of the economy.
“The credit facility addresses one of the most critical requirements of our private sector, that is, access to affordable, long-term financing,” Ministry of Finance, Economic Development and Investment Promotion permanent secretary George Guvamatanga said at the signing ceremony on Thursday.
Reserve Bank of Zimbabwe governor John Mushayavanhu said the CABS-BII facility would address financing needs in productive sectors, including agriculture, food manufacturing and small and medium-sized enterprises.
The central bank has also emphasised the need for financial institutions to direct capital towards commercially viable projects through robust credit assessment and risk-management systems.
CABS managing director Mehluli Mpofu said the partnership would strengthen the bank’s capacity to finance businesses in agriculture and food manufacturing.
“We are delighted to partner with British International Investment to strengthen financing for businesses across Zimbabwe’s agriculture and food manufacturing sectors,” Mpofu said.
“These sectors are important to Zimbabwe’s productive economy and have significant potential to support growth and exports.”
He said the facility would enable CABS to provide businesses with financing and trade solutions to expand operations, increase production and access new markets.
BII chief investment officer and acting chief impact officer Maria Smith said the facility would help address funding constraints facing agricultural and food-sector businesses.
“Agriculture is central to Zimbabwe’s economy, but businesses need access to both long-term capital and trade finance if they are to invest, grow and reach new markets,” Smith said.