A Promising Partnership for Economic Empowerment
The African Development Bank (AfDB) and NMB Bank Limited Zimbabwe have joined forces to introduce a groundbreaking $15 million Trade Finance Transaction Guarantee Facility. This initiative marks a pivotal moment in advancing trade finance opportunities for Zimbabwean businesses, particularly SMEs and agribusiness sectors.
Key Figures Unite for Economic Growth
The signing ceremony witnessed the presence of prominent figures, including Moono Mupotola, the AfDB’s Country Manager, and Gerald Gore, CEO of NMB Bank. With the AfDB’s board approval secured in November 2023, this facility promises comprehensive coverage to confirming banks, mitigating non-payment risks associated with trade transactions facilitated by NMB Bank.
A Commitment to Private Sector Development
Mupotola reaffirmed the AfDB’s commitment to bolstering Zimbabwe’s private sector, emphasizing the significance of reducing trade finance risks. By enhancing accessibility and mitigating risks, this initiative aims to empower SMEs and local corporates to actively participate in regional and global markets, fostering growth and competitiveness.
Facilitating Access to Trade Finance
Recognizing the hurdles faced by SMEs in accessing trade finance, the partnership between AfDB and NMB Bank seeks to create a more inclusive and vibrant business environment in Zimbabwe. Gerald Gore stressed the pivotal role of this facility in economic growth, envisioning its contribution to job creation and unlocking new trade opportunities.
Supporting National Development Goals
Aligned with the Bank’s country strategy paper for Zimbabwe (2024-2026) and Zimbabwe Vision 2030, this trade finance facility prioritizes private sector development. With a shared vision of transforming Zimbabwe into a prosperous upper-middle-income society, this partnership is poised to drive economic empowerment and sustainable growth.
Milestone Achievement: Fostering Economic Participation
The collaboration between AfDB and NMB Bank signifies a significant milestone in Zimbabwe’s economic trajectory. By bolstering SMEs and agribusinesses, this initiative enables broader participation in regional and international trade, positioning Zimbabwe as a formidable player in the global market landscape.
