The world’s largest international public bank, European Investment Bank (EIB) has agreed to support EUR15 million of new long-term financing for entrepreneurs and businesses across Zimbabwe in cooperation with leading local bank CABS.
The EIB is the world’s largest international public bank, owned directly by the 27 European Union member states. Last year the EIB provided more than EUR 4.7 billion for private and public investment across Africa.
This grant is the first of it’s kind in two decades after the EIB tcut off Zimbabwe over unpaid loans. The EIB financed energy, water telecom and industrial investment in Zimbabwe between 1982 and 1999.
The facility is a seven-year facility that will be extended to local businesses, including SMEs. Under the plan, CABS will provide financing in USD to eligible private sector clients across.
Thomas Östros, Vice President of the European Investment Bank said this new agreement demonstrates how Team Europe and African partners are joining forces to beat COVID and help business flourish.
“Ensuring access to finance by Zimbabwean entrepreneurs and businesses is crucial to overcome business uncertainties and economic challenges enhanced by COVID-19.
“As part of Team Europe, the European Investment Bank is pleased to provide EUR 15 million of new targeted financing to CABS to unlock new private sector financing essential to strengthen private sector investment, create jobs and accelerate the post-pandemic recovery of Zimbabwe,” he said.
Announcing the cooperation during a virtual ceremony in Harare earlier today by Mehluli Mpofu, Managing Director of CABS said the new EUR 15 million European Investment Bank backing for CABS will unlock new private sector financing to be provided by our branches across the country to private businesses.
“Companies and communities across Zimbabwe have been impacted by the COVID-19 pandemic. CABS is committed to supporting private sector investment in Zimbabwe and enabling our corporate, business and agricultural clients to invest for the future and create economic opportunities.
The close cooperation between CABS and EIB financial experts over recent months will transform access to longer term loans in foreign currency essential for Zimbabwean businesses to grow during challenging times and ensure that Zimbabwe benefits from the EIB’s rapid response to strengthen economic resilience to COVID across Africa,” he said.
This fund will allow longer average loan tenors for business loans and enable companies to better reflect the economic life of new investment.
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