NMB Bank Limited Zimbabwe and the African Development Bank (AfDB) signed a USD 15 million Trade Finance Transaction Guarantee Facility agreement to enhance trade finance opportunities in Zimbabwe.
The bank’s strategic alliance with AfDB is designed to unlock trade finance opportunities for Zimbabwean businesses, with a particular focus on supporting small and medium-sized enterprises (SMEs) and local corporates engaged in agri-business and trade distribution value chains.
The Transaction Guarantee Facility grants NMB Bank access to up to fifteen million United States dollars over a tenure of up to 36 months. It offers up to 100% coverage to confirming banks, effectively mitigating non-payment risks associated with our trade transactions on a per-transaction basis.
This facility is tailored to support intra-Africa trade and trade between Africa and the rest of the world, providing a versatile and responsive financial solution for the bank’s clients. By reducing the necessity for cash collateral and offering up to 100% payment guarantee on the transaction value, the bank can ensure the security of trade transactions, thereby fostering a more vibrant and inclusive business environment in Zimbabwe.
“We believe that this partnership with AfDB aligns perfectly with our commitment to supporting the growth and competitiveness of Zimbabwean businesses. Through this initiative, we aim to empower SMEs and local corporates to participate more actively in regional and international trade, unlocking new opportunities, contributing to job creation, and driving economic growth in our country,” said Gerald Gore, CEO of NMBZ.
“At NMB Bank, we are proud to be a part of this innovative collaboration, which not only demonstrates our dedication to serving the needs of our clients but also reinforces our position as a leading financial institution in Zimbabwe. Together with AfDB, we look forward to making a lasting impact on the trade finance landscape, ultimately contributing to the prosperity of our nation”, he concluded.
For more information visit www.nmbz.co.zw
