Afreximbank Loans US$190 million to Zimbabwe’s CBZ Bank

African Export-Import Bank (Afreximbank) has concluded financing facilities totalling US$190 million for CBZ Bank Limited, shortly after the two institutions’ subsidiaries launched National Africa Trade and Distribution Company Limited (ATDC) Zimbabwe.

• •The first facility is a US$150-million revolving trade finance facility for CBZ Bank Limited, enabling it to provide funding and letters of credit support to companies in Zimbabwe, helping bridge the trade finance gap in Africa.
• •A second facility, a US$20-million dual-tranche SME finance facility, will support CBZ Bank Limited by strengthening its capacity to support Small and Medium Enterprises (SMEs) engaged in trade and other trade-related activities.
• •Afreximbank also announced the launch of National ATDC Zimbabwe as a joint venture between ATDC and CBZ Agro Yield, a member of CBZ Holdings Ltd., and ATDC Malawi as a joint venture between ATDC and Press Corporation Plc, the apex conglomerate in Malawi.

“From exporters to small businesses, we are committed to enabling growth while contributing to key national priorities, including energy development,” CBZ Bank Managing Director Valeta Mthimkhulu said during the signing ceremony in El Alamein, Egypt.

The two institutions also signed an agreement for a US$20-million dual-tranche on-lending facility to CBZ Bank Limited to help reduce power deficits and increase power stability in Zimbabwe and the SADC region. The third facility positions CBZ Bank to participate in an approved US$210-million syndicated dual-tranche facility for the Zimbabwe Electricity Transmission and Distribution Company.

Haytham Elmaayergi, Executive Vice President, Global Trade Bank, Afreximbank, noted that the facilities, directly and indirectly, supported export-oriented businesses within Zimbabwe, serving as enablers to the generation of much-needed foreign exchange and easing of pressure on foreign currency, thereby boosting economic growth in the country.

Separately, the Africa Trade and Distribution Company Limited (ATDC), a subsidiary of African Export-Import Bank (Afreximbank), signed agreements to launch National ATDC Zimbabwe and National ATDC Malawi, advancing its strategy to build country-level trading, logistics and distribution platforms that strengthen African value chains and expand intra-African trade.

The launch of the Zimbabwe and Malawi platforms follows the incorporation of ATDC Egypt earlier this year, bringing the total number of National ATDC entities to three. In Zimbabwe, the platform will focus on commodity aggregation, export development, market intelligence, warehousing, logistics, supplier-buyer linkages, trade-related services and support for SMEs and emerging exporters.

ATDC Malawi will focus on commodity trading, aggregation, warehousing, exports, strategic imports, structured trade finance, collateral management, cold chain and logistics infrastructure, value addition and trade intelligence.