Zimbabwe’s CBZ Bank Limited Gains Significant Funds from Afreximbank

​In June 2024, CBZ Bank Limited, the largest banking institution in Zimbabwe, signed a breakthrough agreement with the African Export-Import Bank (Afreximbank) at the Afreximbank Annual Meetings in the Bahamas. The money supplied comes in two tranches, with Afreximbank extending a $60 million line of credit, as well as an Afreximbank Trade Facilitation Programme (AFTRAF) facility valued at $20 million.

The line of credit will ensure that CBZ Bank and its financial intermediaries have robust funds in support of small to medium sized businesses (SMEs) and their capacity building efforts. With export-focused SMEs able to readily access investment capital, they will boost foreign exchange earnings and reduce pressure on foreign currencies within the country.

The funds are essential in ensuring economic continuity at a time when many international banks are reluctant to release loans to Zimbabwean institutions. The AFTRAF facility allows CBZ Bank to extend lines of credit to SMEs in an environment where confirming banks are in short supply.

In addition to promoting exports, the facilities will provide a boost to imports of critical products such as drugs, fertilizers, and fuel, which are essential to social welfare and the ramping up of export industries. Another aspect of CBZ Bank's plan involves increasing the accessibility of funds through affordable mobile banking platforms, which promote an overarching goal of financial inclusion for the traditionally underbanked.

Rebecca Gaskin Gain

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