The African Development Bank (AfDB) has approved a US$25mn trade finance line of credit facility to the Central Africa Building Society (CABS) of Zimbabwe.
The facility will help fund CABS’ trade finance operations to local firms, including small and medium-sized enterprises. The financing will also support the importation of agro chemicals, pesticides, farm machinery, spares and equipment, which Zimbabwe badly needs to revive its agricultural and manufacturing sectors.
According to an AfDB statement, the facility is expected to strengthen the financial sector financing approximately US$150mnn of trade over a 3.5-year period.
The CABS facility is the latest in a number of AfDB initiatives in the country, which include supporting the external debt and arrears clearance process, improvements of governance, and indirectly supporting the private sector through regional financial institutions that operate and invest in the country.