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The African Development Bank (AfDB) has approved a USD 15 million funding package for Zimbabwe’s First Capital Bank to provide trade finance for small and medium-sized enterprises (SMEs) and women-owned businesses.
The African Development Bank (AfDB) has approved a USD 15 million funding package for Zimbabwe’s First Capital Bank to provide trade finance for small and medium-sized enterprises (SMEs) and women-owned businesses. The line of credit will provide the much-needed hard currency financing to support FCB to close its trade finance gap and expand its trade finance support for SMEs and local corporates in Zimbabwe.
The package, comprising a USD 7.5 million trade finance line of credit and a USD 7.5 million transaction guarantee, is expected to catalyse about USD 146 million in trade over the next three years. The transaction guarantee will provide a 100% guarantee to international confirming banks (CBs) for the non-payment risk taken on FCB’s trade finance transactions conducted on behalf of SMEs, and women-led businesses.
Tapera Mushoriwa, CEO of First Capital Zimbabwe, highlighted that the package strategically enhances FCB’s trade finance capabilities both domestically and internationally, positioning the bank as a pivotal player in facilitating trade within Zimbabwe, across Africa, and globally. The facility is expected to support the importation of strategic commodities and promote the integration of Zimbabwe’s economy into regional and global trade markets, which are essential for the country’s growth, stated Moono Mupotola, AfDB Zimbabwe Country Manager.
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The approval of this trade finance package underscores AfDB’s commitment to promoting inclusive and sustainable economic growth in Zimbabwe and beyond, aligning with the broader objectives of AfCFTA to foster intra-African trade and economic integration.
