NMB Bank secures US$10m for agricultural exporters

NMB Bank Zimbabwe Limited announced today that it has secured a $10 million loan from British International Investment (“BII”), the UK’s development finance institution and impact investor, to support agricultural exporters and sustainable farming practices in the country.

The facility positions NMB Bank as one of the prime supporters of the agriculture sector’s sustainability efforts. This is the first Financial Services debt financing from BII in Zimbabwe, reflecting the organisation’s commitment to support the country’s banking sector.

70 percent of the funding will be allocated to NMB’s agricultural exporter customers. This will enable them to invest in capital expenditure such as machinery, operation infrastructure like irrigation systems and material imports including fertilizers to enhance their production capabilities.

The remaining 30 per cent will be channelled to customers practising sustainable agriculture with projects that promote climate risk mitigation and adaptation. For example, it could help customers to install on-farm renewable energy and energy efficient measures, as well as get access to climate information and weather services to build climate resilience.

Pete Vowles, British Ambassador to Zimbabwe, said: “We are very excited to see this new investment by BII, the latest in a long history of UK investment in Zimbabwe to grow businesses and economic opportunity. The focus on boosting agricultural exports and on sustainable agriculture aligns well with Zimbabwe’s national development priorities, and will help promote food security and exports, increase incomes, and strengthen resilience to climate change. My team and I are working to bring more UK investment to Zimbabwe, and this is an important step on our journey together.”

Chris Chijiutomi, Managing Director and Head of Africa, BII said: “Agriculture is the backbone of Zimbabwe’s economy. Through providing the much-needed capital through our partner NMB Zimbabwe, we are addressing the financing gap for agribusinesses for better and more sustainable economic output. This is aligned with the country’s priority to modernise and grow the sector, poised to provide better economic opportunities to the larger working population.”

Gerald Gore, NMB Bank’s Chief Executive Officer said: “NMB Bank’s collaboration with BII is a significant development for Zimbabwe’s agricultural sector. We are excited to be the first bank in the recent past to benefit from such support from BII and this speaks to vision alignment between the two institutions and our desire to boost agriculture exports for the country.  The $10 million commitment comes with a great focus on sustainability. This partnership has the potential to unlock significant growth opportunities within the agricultural sector, contributing to the nation’s economic prosperity.”

Dr. John Mushayavanhu, Reserve Bank of Zimbabwe  said “The partnership is a demonstration of confidence in Zimbabwean financial institutions. The credit line supporting agriculture is a crucial step towards realising the vision of restoring Zimbabwe as the breadbasket of Africa. We hope that this initiative will pave the way for further credit lines to be extended to NMB and other Zimbabwean financial institutions.”

From the left: Pete Vowles British Ambassador to Zimbabwe, Dr John Mushayavanhu, Governor of the Reserve Bank of Zimbabwe, Margret Chipunza NMB Bank Chief Finance Officer, Dirk Holshausen, Coverage Director for South Central Africa at BII and Pearson Gowero NMBZ Board Chairman who all witnessed the signing.

This investment supports United Nations’ Sustainable Development Goals SDG 2 on Zero Hunger, SDG 8 on Decent Work and Economic Growth, SDG 9 on Industry, Innovation and Infrastructure, as well as SDG 13 on Climate Action.

NMB Bank Zimbabwe Limited is a multi-award-winning registered commercial bank and the principal subsidiary of NMBZ, a Zimbabwean-based investment holding company listed on the Zimbabwe Stock Exchange with interests in Property, Technology and Microfinance. The bank has among its top shareholders strong international and regional entities such as African Century, Arise, Old Mutual, and AfricInvest who all have a very strong African footprint. www.nmbz.co.zw

NMB Bank is a registered member of the Deposit Protection Scheme.

British International Investment is the UK’s development finance institution and impact investor. As a trusted investment partner to businesses in Africa, Asia and the Caribbean, BII invests to create productive, sustainable and inclusive economies in our markets. Between 2022-2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,470 businesses across 65 countries and total assets of £8.1 billion. For more information, visit: www.bii.co.uk | watch here. Follow British International Investment on LinkedIn and X.