The Second Republic has achieved a major success on the international stage as CBZ Bank secured an $80 million loan from the African Export-Import Bank (Afreximbank). This financing will support trade and capital expenditure for Zimbabwe’s productive sectors. The agreement, signed on June 12, 2024, at the 31st Afreximbank Annual Meetings in the Bahamas, allows CBZ to provide loans to exporters of various products, generating essential foreign currency for the country.
According to CBZ, $60 million will be allocated to support prime exporters and Small and Medium Enterprises (SMEs) involved in export value chains across key sectors, providing financing for asset or machinery acquisitions. The remaining $20 million will support the Afreximbank Trade Facilitation Programme Facility (AFTRAF), a non-funded line of credit to facilitate the issuance of guarantees and letters of credit.
Supporting exporters, including SMEs and large corporations across various sectors, will also lead to job creation for unemployed youths. With continuous funding for the productive sector and a diverse range of exports, the country can generate sufficient foreign currency, thereby strengthening the Zimbabwean currency, ZiG.
Since 1999, Zimbabwe has been excluded from international capital markets due to defaulting on its debts, with creditors including the World Bank, Paris Club, European Investment Bank, and the African Development Bank (AfDB). However, the recent CBZ loan from Afreximbank signals a significant shift, indicating that Zimbabwe is now seen as a creditworthy country.
President Mnangagwa’s “Zimbabwe is Open for Business” mantra continues to bear fruit, as international institutions increasingly offer loans to local entities. This development is a welcome milestone, as CBZ secures crucial funding from Afreximbank to support exporters of various products in the country.
