NMB Bank Zimbabwe Limited secures $10 million loan
BUSINESS REPORTER
NMB Bank Zimbabwe Limited has secured a US$10m loan facility from British International Investment (“BII”), the UK’s development finance institution and impact investor, to support agricultural exporters and sustainable farming practices in the country.
The facility positions NMB Bank as one of the prime supporters of the agriculture sector’s sustainability efforts.
This is the first Financial Services debt financing from BII in Zimbabwe, reflecting the organisation’s commitment to support the country’s banking sector.
It is expected that 70% of the funding will be allocated to NMB’s agricultural exporter customers.
This will enable them to invest in capital expenditure such as machinery, operation infrastructure like irrigation systems and material imports including fertilizers to enhance their production capabilities.
The remaining 30% will be channelled to customers practising sustainable agriculture with projects that promote climate risk mitigation and adaptation.
For example, it could help customers to install on-farm renewable energy and energy efficient measures, as well as get access to climate information and weather services to build climate resilience.
Pete Vowles, British Ambassador to Zimbabwe, said: “We are very excited to see this new investment by BII, the latest in a long history of UK investment in Zimbabwe to grow businesses and economic opportunity. The focus on boosting agricultural exports and on sustainable agriculture aligns well with Zimbabwe’s national development priorities, and will help promote food security and exports, increase incomes, and strengthen resilience to climate change. My team and I are working to bring more UK investment to Zimbabwe, and this is an important step on our journey together.”
Chris Chijiutomi, Managing Director and Head of Africa, BII said: “Agriculture is 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. This is aligned with the country’s priority to modernise and grow the sector, poised to provide better economic opportunities to the larger working population.”
Gerald Gore, NMB Bank’s Chief Executive Officer said: “NMB Bank’s collaboration with BII is a significant development for Zimbabwe’s agricultural sector. 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. The $10 million commitment comes with a great focus on sustainability. This partnership has the potential to unlock significant growth opportunities within the agricultural sector, contributing to the nation’s economic prosperity.”
This investment supports United Nations’ Sustainable Development Goals SDG 2 on Zero Hunger, SDG 8 on Decent Work and Economic Growth, SDG 9 on Industry, Innovation and Infrastructure, as well as SDG 13 on Climate Action.