The Eastern and Southern African Trade and Development Bank (TDB) has extended a US$10mn trade finance line of credit to NMB Bank (NMB), to support corporate clients in export-focused sectors of Zimbabwe’s economy.
Provided as part of TDB’s financial institutions strategy, the three-year facility will allow NMB to fund corporates with trade-enabling working capital and capital expenditures. Priority will be given to sectors that enhance Zimbabwe’s export base, increase forex revenue and support expanded employment in sectors such as agriculture, mining, hospitality, tourism, and manufacturing.
“TDB has successfully positioned itself to support local banks with lines of credit to intermediate key trade flows within and between the region and the rest of the world, which is much needed following the retreat of some international correspondent banks from the continent,” says Michael Awori, chief executive of TDB.
Gloria Mamba, group executive of TDB, coverage for Southern Africa, says the institution first provided a line of credit to NMB in 2010. The banks collaborated again in 2019, when they enabled a local microfinance institution to extend lending to small and medium-sized enterprises.
“Our partnership with TDB has stood the test of time. This line of credit helps to support our shared focus on growth, sustainability, and overall contribution to the development of the Zimbabwean economy. The facility provides the much-needed support to our exporting entities to retool and for working capital support in order for them to compete effectively on the global arena,” says Gerald Gore, chief executive of NMB.