NMB Bank Secures US$25 Million Proparco Facility t...

NMB Bank Secures US$25 Million Proparco Facility to Boost Economic Sectors

Audrey Galawu

Assistant Editor

NMB Bank Limited, a subsidiary of NMBZ Holdings, achieved a significant milestone during the third quarter of 2024 by securing a US$25 million credit facility from Proparco, the French Development Finance Institution.

This financial injection is set to provide crucial support to Zimbabwe’s key economic players, particularly SMEs, women entrepreneurs, and businesses in agriculture and trade.

In its trading update for the nine months ended September 30, 2024, NMBZ said the Proparco facility underscores NMB Bank’s commitment to addressing the funding gaps that hinder economic growth.

“SMEs, often referred to as the backbone of the country’s economy, will benefit immensely from this funding, enabling them to scale operations, improve productivity, and create employment opportunities.

“In partnership with Rabobank, one of the global leaders in Food and Agriculture, the Group is working on an end-to-end value chain approach to bolster the Zimbabwean agricultural ecosystem.

“A horticulture sector deep dive conducted during the quarter revealed significant growth potential, particularly in expanding access to export markets such as the European Union, Middle East, and the Far East,” reads the update.

Women entrepreneurs, a traditionally underserved demographic, are also prioritized under this facility. By empowering women-led businesses, NMB Bank not only supports gender inclusivity but also contributes to sustainable economic development.

Agriculture remains one of Zimbabwe’s most critical economic sectors, and this facility aligns with NMB Bank’s broader strategy to bolster agricultural value chains. The funds will help farmers access resources, invest in modern farming practices, and explore export opportunities.

Coupled with the bank's collaboration with Rabobank on horticulture export strategies, the facility aims to drive growth in an industry with untapped potential in markets such as the EU, Middle East, and Far East.

Access to affordable capital has long been a challenge for many Zimbabwean businesses. By mobilizing external credit lines like the Proparco facility, NMB Bank is actively bridging this gap.

The additional three credit lines, collectively worth US$75 million, which are currently under discussion, further highlight the bank’s proactive approach to supporting the productive sectors of the economy.