CBZ Holdings has increased its trade finance facility with the African Export-Import Bank (Afreximbank) to US$190 million after securing an additional US$40 million, strengthening its capacity to fund Zimbabwean businesses engaged in regional and international trade.
The boost comes just weeks after the financial institution announced an initial US$150 million revolving trade finance facility with the pan-African lender.
The additional funding is expected to improve access to trade finance and letters of credit for exporters and import-dependent businesses, at a time when demand for foreign currency funding remains high.
In a statement, CBZ said the expanded facility would enhance its ability to finance productive sectors of the economy while supporting companies participating in international trade.
The original US$150 million facility was signed in El Alamein, Egypt, on 21 June this year by Afreximbank executive vice-president for Global Trade Bank Haytham El Maayergi and CBZ Bank managing director Valeta Mthimkhulu.
Commenting on the facility, El Maayergi said the funding would strengthen Zimbabwe’s export-oriented industries.
“This trade finance facility will benefit several productive sectors in Zimbabwe and contribute towards the country’s Vision 2030: Transforming the country to an empowered country, which is a prosperous upper-middle-income economy by 2030,” he said.
He said the financing would enable export-focused businesses to access the capital needed to expand operations and increase their contribution to the economy.
Mthimkhulu said the partnership reinforced CBZ’s commitment to supporting economic growth through increased access to financing.
“This facility expands our ability to deliver critical financing solutions to both established corporates and emerging SMEs, while also enabling us to contribute meaningfully to national imperatives such as strengthening energy infrastructure and supporting Vision 2030,” she said.
The revolving facility will provide trade finance, working capital and letters of credit for Zimbabwean businesses while also supporting capacity-building initiatives.
According to CBZ, the financing is expected to improve liquidity for exporters, strengthen foreign currency generation and ease pressure on the country’s foreign exchange reserves.
Trade finance remains one of the biggest challenges facing Zimbabwean manufacturers and exporters, many of whom rely on imported raw materials, equipment and intermediate goods.
By expanding the facility to US$190 million, CBZ expects to improve access to funding for qualifying businesses, helping them meet international payment obligations while reinforcing the bank’s position as one of Zimbabwe’s leading trade finance providers.