EIB, CABS unveil €15m financing for entrepreneurs and businesses across Zimbabwe
29-04-2021 11:57:00 | by: Pie Kamau | hits: 3227 | Tags:

The European Investment Bank (EIB), has unveiled a €15 million of new long-term financing for entrepreneurs and businesses across Zimbabwe in cooperation with local bank CABS. This first ever partnership between the European Investment Bank and CABS, will extend loan tenors and increase access to USD by businesses in the country.

The 7 year €15 million EIB loan to CABS will allow new financing to be provided to private businesses, notably SMEs, across Zimbabwe. It will also allow longer average loan tenors for business loans and enable companies to better reflect the economic life of new investment. Under the initiative, CABS will provide financing in USD to eligible private sector clients across the country. The new business financing will also help companies to strengthen competitiveness of Zimbabwean companies.

Mehluli Mpofu, Managing Director, CABS: “Companies and communities across Zimbabwe have been impacted by the COVID-19 pandemic. CABS is committed to supporting private sector investment in Zimbabwe and enabling our corporate, business and agricultural clients to invest for the future and create economic opportunities. The new 15 million European Investment Bank backing for CABS will unlock new private sector financing to be provided by our branches across the country to private businesses. The close cooperation between CABS and EIB financial experts over recent months will transform access to longer term loans in foreign currency essential for Zimbabwean businesses to grow during challenging times and ensure that Zimbabwe benefits from the EIB’s rapid response to strengthen economic resilience to COVID across Africa.” 

Thomas Östros, Vice President, European Investment Bank: “Ensuring access to finance by Zimbabwean entrepreneurs and businesses is crucial to overcome business uncertainties and economic challenges enhanced by COVID-19. As part of Team Europe, the European Investment Bank is pleased to provide 15 million of new targeted financing to CABS to unlock new private sector financing essential to strengthen private sector investment, create jobs and accelerate the post-pandemic recovery of Zimbabwe. Today’s new agreement demonstrates how Team Europe and African partners are joining forces to beat COVID and help business flourish.”

The new EIB – CABS cooperation represents the EIB’s first ever support for business investment in Zimbabwe with a commercial bank. The scheme is part of the EIB’s increased engagement across Africa to ensure that companies can continue to access finance when faced with unprecedented health, business and trade challenges linked to COVID-19, approved by European Union finance ministers in April 2020, within weeks of the impact of the pandemic being recognised.