FINANCIAL services firm, NMB Holdings Limited, has secured a multi-purpose US$25 million credit line from French financial group, Proparco Groupe, to support trade and small businesses.
Proparco is the private sector financing arm of Agence Française de Développement Group.
It promotes sustainable economic, social and environmental development by providing funding and support to businesses and financial institutions in Africa, Asia, Latin America and the Middle East.
Speaking during the signing ceremony of the US$25 million facility yesterday in Harare, NMB chief executive officer Gerald Gore said this new credit line would go a long way in funding key sectors of the economy.
“As NMB, we have been making great strides in mobilising external credit lines to support our developmental sectors of the economy and this US$25 million line adds to an already existing pool of credit lines, which stands at about US$84 million and it takes our target to slightly below US$110 million.”
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He said the partnership with Proparco began about 10 years ago.
The NMB boss added that the money would be split into different sectors to help to boost the economy.
“There is a US$15 million line, which is a five-year facility that supports exporters. So, it supports them with working capital and with capex [capital expenditure] requirements,” Gore said.
“Then we have an approved US$5 million SME facility, with a special focus towards agriculture, women run businesses, the youth, green initiatives and businesses that support social services.
“Then lastly, there is a US$5 million trade finance guarantee facility supporting importers. This is a comprehensive package that literally supports every company in Zimbabwe.”
Proparco regional director Steve Gardon said the relationship between NMB and Proparco represented a great opportunity to promote the agricultural sector, women in business, entrepreneurship and the youth.
“Our partnership with NMB represents a great opportunity for Proparco, but also for France and the European Union to support priority sectors, such as agriculture and trade, as well as priority segments,” he said.
“So basically, supporting MSMEs, supporting women-owned enterprises, supporting youth businesses, supporting very impactful projects in Zimbabwe. We are also very grateful for this partnership.”
He said they tailor-made the facility to adapt to the economy’s challenges.
“We are very aware of the many challenges facing the embedded banks when it comes to financing the real economy and especially the agricultural space. So, it is in this context that we took the approach to structure package solutions of funding to address as much of the challenges NMB and Zimbabwean businesses were facing as possible,” Gardon said.
Speaking at the same event, Reserve Bank of Zimbabwe deputy governor Innocent Matshe said the central bank was supportive of the NMB and Proparco partnership as it would help in the country’s economic development.
