NMB Bank Limited has secured a US$10 million facility from a UK-based development financial institution for on-lending to exporting agribusinesses and those investing in climate-smart practices.
The loan from British International Investment (BII) comes as local financial institutions are on the prowl for lines of credit from international financiers to meet the growing demand for forex-based loans.
The facility will be a boost for agricultural exporters and sustainable farming practices in the country.
Seventy percent of the loan will go to NMB’s agricultural exporting customers to invest in irrigation systems and fertilisers to enhance their production capabilities, according to a statement released yesterday. Thirty percent of the loan will cater for 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,” the statement read.
NMB Bank chief executive officer Gerald Gore said the 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 US$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,” Gore said.
Chris Chijiutomi, BII managing director and head of Africa, said agriculture is the backbone of the Zimbabwean economy and the loans will help to address the financing gap for agribusinesses for better and more sustainable economic output
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“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,” Chijiutomi said.
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 opportunities. 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 investments to Zimbabwe and this is an important step on our journey together.”
BII is a trusted investment partner to businesses in Africa, Asia and the Caribbean. Between 2022-2026, at least 30% of BII’s total to new commitments by value will be in climate finance.
