LIVINGSTONE MARUFU
Listed financial services provider, NMBZ is edging closer to sealing a deal with offshore lenders for a US$55m lines of credit ,it has been learnt.
The development was confirmed by
NMBZ group CEO, Gerald Gore, who told Business Times that two international lenders have subsequently conducted due diligence on the local financial institution.
But he kept the identity of the possible foreign lenders a secret.
“We are currently working on a pipeline in excess of US$55m and two of the institutions have already conducted a due diligence on the bank,” Gore said.
He added: “With these anticipated direct foreign investments, we anticipate to play a significant role in growing horticulture exports and finance expansion projects which will create more than 10 000 jobs.”
Over the last ten years, NMBZ has been successful in securing foreign credit lines.
It recently obtained €12.5m from the European Investment Bank, most of which was used to assist the horticultural sector. Moreover, the organization is currently drawing down US$10m from TDB Group, the majority of which will also be utilized for horticultural purposes.
“We believe that the model we are building will create a solid template for how banks can fund agriculture in Zimbabwe. The solution lies around banks taking time to firmly understand the demands of the farmers and the challenges they face so that any financing solutions are tailor-made.
“We also need to look beyond just financing to create linkages, including access to markets. There is huge potential to unlock patient funds, but this needs to be supported by viable, sustainable and properly constituted enterprises to tap into these funds,” Gore said.
According to him, the goal of NMBZ is to make it easier for smallholder farmers and the wholesale markets to obtain financing.
NMBZ, Gore explained, aims to make financing more accessible to smallholder farmers and the wholesale markets.
According to Gore, NMBZ’s support will now include market identification in addition to increasing its visibility.
“Leveraging our robust digital capabilities, NMB aims to go beyond traditional banking services. We aspire to provide premium support and services, empowering farmers in the fields as well as connecting them to international markets,” Gore told Business Times.
