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Peter Matika, Business Reporter

THE European Investment Bank (EIB Global) in partnership with Stanbic Bank Zimbabwe has launched a 20 million Euro (ZWG525,9 million) credit line to provide long-term loans at favourable conditions to Small and Medium Enterprises (SMEs).

In a statement, the EU said the facility will focus on SMEs and businesses owned or run by women, which employ a significant number of women and offer services specifically to women.

“The African continent has one of the highest percentages of women entrepreneurs in the world. More than half the SMEs in Zimbabwe are led by women, while over half of Zimbabwean companies say that limited access to credit is preventing their growth,” said the EU.

“Worldwide, women-run businesses are less likely to be able to access the finance they need. In line with the EU’s Global Gateway, which contributes to narrowing the global investment gap worldwide, the EIB-Stanbic facility will address this financing gap with financial tools targeting the needs of female entrepreneurs and advance women’s economic empowerment in Zimbabwe.

”The funding support also contributes to the “2X Challenge”, an initiative to mobilise investment that increases women’s participation in the economy in emerging markets, by improving women’s access to finance, leadership opportunities and quality employment.

EIB vice-president Mr Thomas Östros, who is also responsible for diversity and inclusion as well as for operations in Southern Africa, was quoted as saying: “With over half of the SMEs in Zimbabwe owned by women, EIB Global support for these businesses will have a real impact on economic growth, job creation and prosperity.”

He said backing women in business contributes to more sustainable and inclusive growth that strengthens communities.
Mr Ostros said the initiative aligns with the core belief that Zimbabwe holds huge potential for economic growth.

“By supporting SMEs and enterprises owned or run by women and employing significant numbers of women, we are fostering economic inclusion and national development,” he said.

European Investment Bank (EIB) Head of Division Mr Christophe Litt, Stanbic Bank CEO Mr Solomon Nyanhongo and EU Ambassador to Zimbabwe Jobst von Kirchmann

Mr Ostros said by empowering SMEs and women-run businesses, they were empowering families, communities and ultimately, the nation.

Through this partnership, the EU and Stanbic Bank are committed to driving meaningful change and unlocking opportunities for women entrepreneurs and SMEs across Zimbabwe through provision of much-needed medium-term funding, said Stanbic Bank chief executive, Mr Solomon Nyanhongo.

EU Ambassador to Zimbabwe, Mr Jobst von Kirchmann, said investing in women is investing in Zimbabwe’s future.
“Through the Team Europe Initiative on Gender Equality and Women’s Empowerment, the EU and EU member states are working together to create a transformative impact for Zimbabwean women,” he said.

Mr Kirchmann said the dedicated credit line complements team Europe’s efforts on the ground in implementing the Global Gateway Strategy to not only unlock opportunities for women entrepreneurs but also drive inclusive economic growth.

“This partnership between the EU, EIB Global, and Stanbic demonstrates our commitment to women’s economic empowerment and financial inclusion, creating jobs and strengthening Zimbabwe’s private sector,” he said.

The EIB loan is backed by the European Commission and European Union member states through the African, Caribbean and Pacific Trust Fund (ACP Trust Fund).