LIVINGSTONE MARUFU
Financial services provider, NMB Bank Limited is negotiating with two unnamed lenders for a €20m line of credit to fund exporting farmers and manufacturers.
It comes after the €12.5m availed by the European Investment Bank (EIB) in June was oversubscribed.
NMB chief executive officer Gerald Gore confirmed the talks on new funding but could not be drawn into revealing the identity of the two financial institutions.
“As you recall we got €12.5m in June but the demand is very high.The pipeline is way above that amount and that’s why we are going out to get additional credit lines to the tune of €20m for exporting entities.We are talking to two institutions right now who are set to extend the €20m. But, I can’t disclose them right now,” Gore said.
He added: “We have peas, blueberry and other export produce farmers, manufacturing concerns and transport and logistics firms make bulky of those who have drawn down and need more funding.”
The lines of credit have helped Zimbabwe’s productive sectors in export-oriented SMEs and mid-cap agriculture and manufacturing companies to increase productivity and exports.
The EIB loan facility has a tenure of seven years through NMB Bank networks 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.
