By Elvis Dumba
Harare — The European Investment Bank (EIB Global) and Stanbic have launched a €20 million (ZWG 525.9 million) credit line, to provide longer-term loans at favourable conditions to small and medium-sized businesses (SMEs) in Zimbabwe.
The facility will focus on SMEs growth for businesses owned or run by women.
The African continent has one of the highest percentages of women entrepreneurs in the world according to the World Bank.
In Zimbabwe half of the SMEs are led by women, while over half of Zimbabwean companies say that limited access to credit is preventing their growth. Worldwide, women-run businesses are less likely to be able to access the finance they need.
In line with the EU’s Global Gateway which contributes to narrowing the global investment gap worldwide, the EIB-Stanbic facility will address this financing gap with financial tools targeting the needs of women entrepreneurs and advance women’s economic empowerment in Zimbabwe.
It contributes to the 2X Challenge, an initiative to mobilise investment that increases women’s participation in the economy in emerging markets, by improving women’s access to finance, leadership opportunities and quality employment.
“With over half of the SMEs in Zimbabwe owned by women, EIB Global support for these businesses will have a real impact on economic growth, jobs and prosperity,” Thomas Östros, EIB Vice-President responsible for diversity, inclusion and operations in Southern Africa said.
The initiative has been hailed as one that empower families and economic growth.
“Backing women in business contributes to more sustainable and inclusive growth, strengthening communities.”
“This initiative aligns with our core belief that Zimbabwe is our home, we drive her growth. By supporting SMEs and enterprises owned or run by women and employing significant numbers of women we are fostering economic inclusion and national development. By empowering SMEs and women-run businesses we are empowering families, communities, and ultimately, the nation. Through this partnership, we are committed to driving meaningful change and unlocking opportunities for women entrepreneurs and SMEs across Zimbabwe through provision of much-needed medium-term funding,” Solomon Nyanhongo, Chief Executive of Stanbic Bank said during the inking ceremony.
Jobst von Kirchmann, Ambassador of the European Union to Zimbabwe said the initiative is driving an inclusive economic growth
“Investing in women is investing in Zimbabwe’s future. Through the Team Europe Initiative on Gender Equality and Women’s Empowerment, the EU and EU Member States are working together to create a transformative impact for Zimbabwean women. This dedicated credit line complements Team Europe’s efforts on the ground in implementing the Global Gateway Strategy – we are not only unlocking opportunities for women entrepreneurs but also driving inclusive economic growth.
This partnership between the EU, EIB Global, and Stanbic demonstrates our commitment to women’s economic empowerment and financial inclusion, strengthening Zimbabwe’s private secto,” he said.
The 2X Challenge is an initiative to mobilise investment that increases women’s participation in the economy in emerging markets, by improving women’s access to finance, leadership opportunities and quality employment.
To improve the impact of its activities the strategy is operational through a Strategy on Gender Equality and Women’s Economic Empowerment and a Gender Action Plan with the aim of embedding gender equality and, in particular, women’s economic empowerment in the EIB’s business model covering its lending, blending and advising work within and outside the European Union whilst Global Gateway is the European strategy to boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems across the world.
Through a ‘Team Europe approach’, It brings together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments promoting sustainable growth.
Between 2021 and 2027, Team Europe jas targeted to mobilise up to €300 billion of investments for sustainable, transformational and high-quality projects, taking into account the needs of partner countries and ensuring lasting benefits for local communities.
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