PROPARCO is providing Stanbic Bank Zimbabwe with a EUR5 million (US$5,3 million) EURIZ facility to support its ability to offer long term finance to local farmers operating in the Zimbabwean agricultural sector.
The signing ceremony was held in Harare recently in the presence of representatives from Proparco, Stanbic Bank Zimbabwe, the French Embassy and the EU Delegation to Zimbabwe.
In Zimbabwe, access to finance, and in particular term finance, is a major constraint for local farmers.
The EUR5 million EURIZ facility from Proparco to Stanbic Zimbabwe benefits from European Union financial support and is contributing to the Team Europe Initiative on Greener and Climate Smart Agriculture.
It will share the risk associated with financing small and medium-sized enterprises (SMEs) operating in the agriculture sector, thus increasing the bank's ability to finance the economy.
“This operation demonstrates the priority accorded by Proparco to supporting the private sector in developing countries, particularly in high-impact sectors like agriculture," Steven Gardon, regional director of Proparco for Southern Africa, said.
"Proparco is pleased to be able to count on a key partner like Stanbic Bank Zimbabwe for the implementation of such important initiatives."
Solomon Nyanhongo, chief executive officer of Stanbic Bank Zimbabwe, said the bank was committed to driving its growth by creating sustainable opportunities for the people.
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“This facility represents a significant milestone for our institution and the farmers we serve. By empowering these farmers, we are not only investing in their individual futures but also contributing to the broader economic growth of our country,” he said.
“Partnerships like these enable us to deepen our impact, transforming lives and communities while fostering economic resilience. We are grateful to Proparco for this facility, and we look forward to further collaboration as we work together to build a more prosperous Zimbabwe.”
This operation is part of the Food & Agriculture Resilience Mission (FARM) initiative, launched in 2022 by Emmanuel Macron, President of the French Republic, alongside the European Union, the G7 and the African Union. Its aim is to strengthen food security in the most vulnerable countries.
This initiative is also part of the Choose Africa programme led by the AFD Group (Agence française de développement, Proparco and Expertise France), which supports African start-ups, micro-businesses and MSMEs by financing and supporting them at different stages of their growth, thanks in particular to local partners supported by the group.
This project is foreseen to contribute towards three SDGs: No poverty, zero hunger and decent work and economic growth.
Proparco, a subsidiary of Agence Française de Développement Group, has been working with the private sector for over 45 years for a more just and sustainable world.
With an international network of 23 local offices, the company works closely with its partners to build sustainable solutions in response to environmental and social challenges in Africa, the Middle East, Asia and Latin America.
Proparco benefits from sector-based expertise as well as a wide range of financial solutions tailored to the different stages of business development, notably thanks to its Digital Africa subsidiary, and its Propulse technical assistance offering designed to scale up the impacts and performance of its partners.
Its new “Acting together for greater impact” Strategy 2023–2027 enables, strengthens and amplifies the different ways in which it works with its partners.
