Staff Writer
Head of Division for Sub Saharan Africa of the European Investment Bank (EIB) Mr Diederick Zambon, is in Harare for a two-day visit.
Mr Diederick Zambon is accompanied by Jim Hodges, Head of EIB Representation for Southern Africa and Indian Ocean.
The EIB representatives will also visit a beneficiary of the current facility.
“The European Investment Bank is the lending arm of the European Union. It is the biggest multilateral financial institution in the world and one of the largest providers of climate finance. I am very proud that our bank could setup a private lending facility in Zimbabwe” explains H.E. Jobst von Kirchmann, Ambassador of the European Union to the Republic of Zimbabwe.
“Our visit will allow us to assess the success of the current EIB EUR40 million credit facility to the private sector and continue dialogue with the Minister of Finance and Economic Development, the Governor of the Reserve Bank of Zimbabwe in coordination with key partners including the Bretton Woods Institutions (World Bank Group and International Monetary Fund) and African Development Bank,” said Diederick Zambon, EIB Head of Division for Sub Saharan Africa.
The EIB is part of the “Team Europe”, alongside the European Union Delegation to Zimbabwe and EU Member States represented in the country.
Team Europe, together with Switzerland, is providing grants to implement two important development projects under the “Gender Equality and Women’s Empowerment” and “Greener and Climate Smart Agriculture” initiatives. Both initiatives are supported by the EIB financing of private sector investments.
The EIB has deployed a EUR40 million facility for Zimbabwean banks to on-lending to the private sector. This is the first EIB engagement in Zimbabwe in 22 years.
Through this Facility, the EIB supports new long-term financing for entrepreneurs and businesses across Zimbabwe in cooperation with leading local banks; CABS, First Capital Bank and NMB Bank.
These three financial institutions will provide financing, in US dollars, to eligible private sector clients.
The financing will allow longer average loan tenors for business loans that enables companies to better match their borrowing to the economic life of their underlying investments.
This EIB funding opportunity aims to accelerate economic growth in pertinent industries through employment creation, commerce up-liftment and promotion of environmentally responsible businesses.
A key objective of the facility is to help address existing financing gaps and raise the production profile in key sectors that will directly impact the overall productivity of the country.
Ensuring access to finance by Zimbabwean entrepreneurs and businesses is crucial to overcome business uncertainties and economic challenges.
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