The African Development Bank Group has approved a US$25 million trade finance line of credit to the Central Africa Building Society for loans, marking the third such agreement with the bank in recent years..
“DFI collaboration is key to private sector development in Africa. This innovative facility will enable CABS to provide liquidity support for SMEs, and women-owned businesses to facilitate their import and export trade finance requirements,” said AfDB head of trade finance Lamin Drammeh.
AfDB country manager for Zimbabwe Moono Mupotola said the line of credit is a strategic milestone expected to have an important demonstration effect, which may prove vital to encouraging other international and regional lenders to offer additional support to the country’s private sector.
The facility is projected to finance approximately $175 million of trade over a three-and-a-half-year period and boost productivity of Zimbabwe’s SME sector.
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