Reduced Risk: AfDB and NMB Bank join forces to pro...

Reduced Risk: AfDB and NMB Bank join forces to promote trade

**AfDB Country Manager for Zimbabwe Moono Mupotola, left, and Gerald Gore, NMB Bank CEO at the signing of an agreement for a US$15 m trade facility in Harare**

Nyashadzashe Ndoro

The African Development Bank and NMB Bank Limited Zimbabwe joined forces to sign a US$15 million Trade Finance Transaction Guarantee Facility.

The initiative aims to unlock trade finance opportunities for Zimbabwean businesses, particularly small and medium-sized enterprises (SMEs), involved in agriculture and trade.

Officials gathered at NMB Bank Headquarters in Harare on March 7th to celebrate the signing. Moono Mupotola, AfDB’s Country Manager, and Gerald Gore, NMB Bank’s Chief Executive Officer, were both present. The project received approval from the AfDB’s board in November 2023.

The facility is expected to offer significant protection to international banks involved in trade finance transactions with Zimbabwean businesses. By guaranteeing up to 100% of the value in case of non-payment, the risk for these international financial institutions is also expected to be greatly reduced. The move is likely to pave the way for stronger trade between Zimbabwe and other African nations, as well as international markets.

Moono Mupotola, the Country Manager for AfDB, reaffirmed the organisation’s commitment to Zimbabwe's private sector growth. “This is a major step forward in making Zimbabwean businesses more competitive and successful,” she stated.

“By reducing risk and making it easier to access trade finance, we are empowering SMEs and local corporations to play a bigger role in regional and international trade.”

The initiative specifically addresses the challenges faced by SMEs, who often struggle to obtain trade finance compared to larger corporations. The project aims to foster a more dynamic and inclusive business environment within Zimbabwe.

Highlighting the agreement’s significance for Zimbabwe’s economic development, Gerald Gore, CEO of NMB Bank, said: “This facility will be crucial in allowing NMB to offer essential trade finance support to a broader range of Zimbabwean businesses. This will not only open new trade doors but also contribute to job creation and economic growth.”

The project was launched in line with the AfDB’s country strategy paper for Zimbabwe (2024-2026), which prioritises private sector development. It also supports several goals outlined in Zimbabwe’s Vision 2030, a national plan aiming to transform the country into a prosperous and empowered upper-middle-income society by the year 2030.