STANBIC Bank Zimbabwe chief executive Solomon Nyanhongo says the bulk of the €20 million credit line unveiled last week will support long term female-led projects.
The European Investment Bank (EIB) and Stanbic last week launched a €20 million credit line to support female-owned small to medium enterprises (SMEs).
ElB is the long-term lending institution of the European Union.
“Women-led businesses, as well as SMEs engaged in meaningful projects, will be able to access this funding once the application process begins,” Nyanhongo told NewsDay Business.
Most of the funding available in Zimbabwe is short-term, mainly for working capital. The Stanbic-EIB credit line provides patient capital with a longer tenure, allowing businesses to invest in long-term projects and grow sustainably.”
Stanbic has identified key sectors such as agriculture and renewable energy as primary beneficiaries of the facility. It is targeting sectors that drive economic growth and create employment.
“Agriculture is a key sector that will benefit, alongside green energy and other economic activities that support national development,” Nyanhongo said.
He said the economy had potential, but was hamstrung by the absence of long-term financing.
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“Zimbabwe’s economy is full of potential, with many untapped opportunities,” Nyanhongo said.
“However, one critical factor missing is long-term financing. With strong partners like EIB, businesses can now access the funding they need to recapitalise and expand.”
Agriculture remains the backbone of the economy, employing a large portion of the population and contributing significantly to economy.
Access to financing is expected to boost productivity, support value addition, and strengthen supply chains.
The renewable energy sector is also a major priority, as the country grapples with power shortages.
Increased investment in solar, wind, and alternative energy sources will not only support businesses but also enhance long-term energy sustainability.
For years, Zimbabwean entrepreneurs especially women and SMEs have struggled to access affordable, long-term funding due to high collateral requirements, limited credit options and short repayment periods.
Most businesses have been forced to operate below their potential.
