Zimbabwe: Afreximbank grants 190 million dollars to CBZ Bank to support trade.

The agreements aim to improve access to credit for actors in the productive sector, particularly small and medium-sized enterprises. They will also support Zimbabwe’s trade with its regional and international partners, in a context marked by ongoing financing constraints.

According to Afreximbank, this arrangement will allow CBZ Bank to better support businesses involved in the import and export of goods and services. It should also help facilitate access to foreign currency and the necessary financing instruments for settling commercial transactions.

Zimbabwe has been seeking to revive its production and reduce the obstacles weighing on its economy for several years. However, the lack of liquidity, difficulties in accessing credit, and disruptions to electricity supply continue to limit business activity.

Support for Businesses and Infrastructure

Part of the funding is to be directed towards sectors essential to economic recovery, particularly energy infrastructure. Electricity shortages are one of the main barriers to industrial and mining production, two important sectors for the country’s exports.

By strengthening the resources available for CBZ Bank, Afreximbank aims to increase the financing provided to Zimbabwean businesses. SMEs, which account for a significant share of activity and employment, are particularly dependent on these mechanisms to invest, import their equipment, and develop their capacities.

The agreement comes as Harare seeks to attract more capital and stimulate intra-African trade. Zimbabwe is among the economies facing limited access to international financing, notably due to its macroeconomic situation and debt levels.

For Afreximbank, this partnership with CBZ Bank aligns with its strategy of supporting African trade and financing economies on the continent. The pan-African bank is increasing its agreements with local financial institutions to broaden the credit available to businesses and structural projects.