NMB Bank Zimbabwe Secures $10 Million Loan to Boost Agricultural Exports and Sustainability
In a significant move to support Zimbabwe’s agricultural sector, NMB Bank Zimbabwe Limited has secured a $10 million loan from British International Investment (BII), the UK’s development finance institution and impact investor. The funding aims to bolster agricultural exports and promote sustainable farming practices in the country.
This loan marks BII’s first financial services debt financing in Zimbabwe, underscoring its commitment to strengthening the nation’s banking sector. The funds will be allocated with a clear focus: 70% will support NMB’s agricultural exporter clients, enabling them to invest in essential capital expenditures such as machinery, operational infrastructure like irrigation systems, and material imports including fertilizers. This investment is expected to significantly enhance production capabilities and competitiveness on the international market.
The remaining 30% of the loan will be directed towards customers engaged in sustainable agricultural projects that promote climate risk mitigation and adaptation such as the installation of on-farm renewable energy systems, energy-efficient measures, and access to climate information and weather services to build resilience against climate change.
Pete Vowles, the British Ambassador to Zimbabwe, expressed enthusiasm for the investment. “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 at BII, highlighted the importance of the agricultural sector to Zimbabwe’s economy, sharing that “Agriculture is the backbone of Zimbabwe’s economy. By providing much-needed capital through our partner NMB Zimbabwe, we are addressing the financing gap for agribusinesses for better and more sustainable economic output. This aligns with the country’s priority to modernize and grow the sector, poised to provide better economic opportunities to the larger working population.”
Gerald Gore, CEO of NMB Bank, emphasized the strategic alignment between NMB and BII. “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. This speaks to the vision alignment between the two institutions and our desire to boost agricultural exports for the country. The $10 million commitment comes with a great focus on sustainability, and this partnership has the potential to unlock significant growth opportunities within the agricultural sector, contributing to the nation’s economic prosperity.”
This investment supports several United Nations Sustainable Development Goals (SDGs), including SDG 2 (Zero Hunger), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action).
