British International Investment (BII) has provided a US$10mn loan to NMB Bank Zimbabwe, the development finance institution’s first banking sector debt financing deal in the Southern African country.
70% of the loan will be used for on-lending to NMB Bank’s agricultural exporter clients, enabling them to invest in machinery, operational infrastructure and imports of crucial materials such as fertiliser.
The remaining 30% will be provided to customers undergoing climate risk mitigation and adaptation projects, such as installation of on-farm renewable energy facilities. Funds will also facilitate access to weather information, building clients’ resilience to adverse conditions.
NMB Bank chief executive Gerald Gore says the deal could unlock “significant growth opportunities” within the agricultural sector, which employs around two-thirds of Zimbabwe’s population.
“We are excited to be the first bank in the recent past to benefit from such support from BII and this speaks to vision alignment between the two institutions, and our desire to boost agriculture exports for the country,” he says.
Chris Chijiutomi, BII’s managing director and head of Africa, describes agriculture as “the backbone of Zimbabwe’s economy”.
“Through providing the much-needed capital through our partner NMB Zimbabwe, we are addressing the financing gap for agribusinesses for better and more sustainable economic output,” he says.
Pete Vowles, British Ambassador to Zimbabwe, adds that work is underway to bring further UK investment to the country.
NMB Bank previously secured a US$10mn trade finance line from the Eastern and Southern African Trade and Development Bank (TDB) to support corporate clients active in export-focused sectors.