CBZ Holdings has expanded its trade finance facility with the African Export-Import Bank (Afreximbank) to US$190 million after securing an additional US$40 million, strengthening its capacity to support Zimbabwean businesses engaged in international trade.
The latest increase follows the initial US$150 million revolving trade finance facility announced in June.
The funding is expected to improve access to trade finance and letters of credit for Zimbabwean companies, particularly exporters, at a time when demand for foreign currency funding remains high.
In a statement, CBZ Holdings said the enlarged facility would widen its ability to finance productive sectors of the economy while supporting businesses involved in regional and international trade.
The original US$150 million facility was signed in El Alamein, Egypt, on June 21 this year by Afreximbank executive vice-president for Global Trade Bank Haytham El Maayergi and CBZ Bank managing director Valeta Mthimkhulu.
Commenting on the facility, El Maayergi said the funding would support Zimbabwe’s export-oriented industries.
“This trade finance facility will benefit several productive sectors in Zimbabwe and contribute towards the country’s Vision 2030:
“Transforming the country to an empowered country, which is a prosperous upper-middle-income economy by 2030,” he said.
He said the financing would help export-focused businesses access the capital needed to expand operations and increase their contribution to the economy.
Mthimkhulu said the partnership with Afreximbank reinforced CBZ Bank’s role in supporting national economic development.
“This facility expands our ability to deliver critical financing solutions to both established corporates and emerging SMEs, while also enabling us to contribute meaningfully to national imperatives such as strengthening energy infrastructure and supporting Vision 2030,” she said.
The revolving facility is designed to provide funding and letters of credit for Zimbabwean companies while also supporting capacity-building initiatives.
According to CBZ, the financing will directly and indirectly benefit export-oriented businesses by improving access to working capital, helping generate foreign currency earnings and easing pressure on the country’s foreign exchange reserves.
Trade finance remains one of the biggest constraints facing many Zimbabwean companies, particularly manufacturers and exporters that rely on imported raw materials and equipment.
The expansion of the Afreximbank facility to US$190 million is expected to improve liquidity for qualifying businesses and enhance their ability to meet international payment obligations, while reinforcing CBZ’s position as one of the country’s leading providers of trade finance.
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