Staff Reporter
CBZ Bank has secured a US$20 million revolving line of credit from the Eastern and Southern African Trade and Development Bank Group (TDB Group) to support Zimbabwean export-oriented firms, a significant move that is expected to strengthen the country’s export sector and enhance economic growth.
The credit facility, which was finalized earlier this week, is aimed at providing the much-needed capital to firms that are engaged in the production of goods for the international market. This financial boost is expected to alleviate some of the challenges faced by local exporters, particularly those related to financing and working capital.
In a statement, CBZ Bank expressed its commitment to leveraging the credit line to drive the growth of Zimbabwe’s export sector.
“This revolving line of credit from TDB Group is a timely intervention that will enable us to provide enhanced support to our clients who are key players in the export sector. The facility will ensure that these firms have access to the necessary resources to meet their production and export targets,” said a spokesperson from CBZ Bank.
The TDB Group, a leading regional development finance institution, has been instrumental in providing financial support to various sectors across Eastern and Southern Africa. The US$20 million facility extended to CBZ Bank is part of TDB Group’s broader strategy to promote regional trade and economic development.
In his remarks during the handover ceremony yesterday, TDB Group President Admassu Tadesse highlighted the importance of supporting export-oriented businesses in the region.
“Export-oriented firms are crucial to the economic resilience of our member states, and by providing this credit line to CBZ Bank, we are confident that it will stimulate greater production and export activities in Zimbabwe. This initiative aligns with our commitment to fostering economic growth and regional integration,” Tadesse said.
This arrangement is expected to provide a stable source of funding for companies that contribute to the country’s foreign currency earnings.
“The revolving nature of the credit line means that funds will be replenished as they are repaid, allowing for continuous support to qualifying export-oriented firms over time,” Tadesse said.
Meanwhile, Zimbabwe’s export sector has been identified as a key driver of economic recovery, with Government and financial institutions alike, prioritizing initiatives that enhance the sector’s capacity. The CBZ Bank credit facility is expected to complement ongoing efforts to boost exports and improve the country’s trade balance.
In addition, exporters in sectors such as agriculture, manufacturing, and mining are likely to benefit from the facility, which will allow them to scale up production, improve product quality, and expand their reach in international markets.
