By Maricho Reporter
- Shot in the arm for sustainable farming and exports
- The $10m loan will be used to support on-lending to exporting agribusinesses, and those investing in climate-smart practices.
- Addressing the financing gap is key in supporting the growth of the agricultural sector which employs approximately 65 per cent of Zimbabwe’s population.
NMB Bank has secured a $10 million loan from British International Investment (BII), UK’s development finance institution and impact investor which is expected to significantly bolster the bank’s efforts to support agricultural exporters and promote sustainable farming practices in Zimbabwe.
The facility positions NMB Bank as one of the prime supporters of the agriculture sector’s sustainability efforts. This is the first Financial Services debt financing from BII in Zimbabwe, reflecting the organisation’s commitment to support the country’s banking sector.
The bank said 70% of the funding will be allocated to its agricultural exporter customers. This will enable them to invest in capital expenditure such as machinery, operation infrastructure like irrigation systems and material imports including fertilizers to enhance their production capabilities.
The remaining 30% will be channelled to customers practising sustainable agriculture with projects that promote climate risk mitigation and adaptation.
For example, it could help customers to install on-farm renewable energy and energy efficient measures, as well as get access to climate information and weather services to build climate resilience.
Agriculture is the backbone of Zimbabwe’s economy. Through providing the much-needed capital through our partner NMB Zimbabwe, we are addressing the financing gap for agribusinesses for better and more sustainable economic output. This is aligned with the country’s priority to modernise and grow the sector, poised to provide better economic opportunities to the larger working population,” Chris Chijiutomi, Managing Director and Head of Africa, BII said.
“We are very excited to see this new investment by BII, the latest in a long history of UK investment in Zimbabwe to grow businesses and economic opportunity.
The focus on boosting agricultural exports and on sustainable agriculture aligns well with Zimbabwe’s national development priorities, and will help promote food security and exports, increase incomes, and strengthen resilience to climate change. My team and I are working to bring more UK investment to Zimbabwe, and this is an important step on our journey together,” said Pete Vowles, British Ambassador to Zimbabwe.
This investment supports United Nations’ Sustainable Development Goals SDG 2 on Zero Hunger, SDG 8 on Decent Work and Economic Growth, SDG 9 on Industry, Innovation and Infrastructure, as well as SDG 13 on Climate Action.
“NMB Bank’s collaboration with BII is a significant development for Zimbabwe’s agricultural sector. We are excited to be the first bank in the recent past to benefit from such support from BII and this speaks to vision alignment between the two institutions and our desire to boost agriculture exports for the country. The $10 million commitment comes with a great focus on sustainability. This partnership has the potential to unlock significant growth opportunities within the agricultural sector, contributing to the nation’s economic prosperity,” according to Gerald Gore, NMB Bank’s Chief Executive Officer.
NMB committed to assisting farmers and promoting agriculture
NMB Bank is taking centre stage in promoting the agricultural sector through provision of financing facilities. The Bank offers loan and overdraft facilities, commodity finance, seasonal finance, acceptance credit, tail end financing and input guarantees.
“Our commitment to the agricultural sector is unwavering, and this loan positions us as a leading supporter of sustainable agriculture. As the first financial institution in Zimbabwe to receive debt financing from BII, we are proud to reflect BII’s confidence in our banking sector,” the bank said.
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