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Business Writer

PROPARCO, a subsidiary of Agence Française de Development Group, has availed 5 million euros to Stanbic Bank Zimbabwe to support the bank’s ability to offer long-term finance to local farmers operating in the Zimbabwean agricultural sector.

This follows the recent signing ceremony in Harare, which was attended by representatives from Proparco, Stanbic Bank Zimbabwe, the French Embassy and the European Union delegation to Zimbabwe.

Access to finance and in particular long-term finance, is a major constraint for local farmers. In a latest update, the French agency said the 5 million euro facility from benefits from European Union financial support is contributing to the Team Europe Initiative on Greener and Climate Smart Agriculture.

The intervention would tackle the risk associated with financing small and medium-sized enterprises (SMEs) operating in the agriculture sector, thus increasing the bank’s ability to finance the economy.

“This operation demonstrates the priority accorded by Proparco to supporting the private sector in developing countries, particularly in high-impact sectors like agriculture.

“Proparco is pleased to be able to count on a key partner like Stanbic Bank Zimbabwe for the implementation of such important initiatives,” Steven Gardon, regional director of Proparco for Southern Africa was quoted as saying.

“Zimbabwe is our home, and we are committed to driving its growth by creating sustainable opportunities for our people. This facility represents a significant milestone for our institution and the farmers we serve.”

Stanbic Bank Zimbabwe

By empowering farmers, Stanbic Bank Zimbabwe has said the support was a significant investment on the producers’ individual futures and also contributing to the broader economic growth of our country.

“Partnerships like these enable us to deepen our impact, transforming lives and communities while fostering economic resilience.

“We are grateful to Proparco for this facility, and we look forward to further collaboration as we work together to build a more prosperous Zimbabwe,” Stanbic Bank Zimbabwe chief executive officer, Mr Solomon Nyanhongo, said.

The intervention is part of the Food & Agriculture Resilience Mission (Farm) initiative, launched in 2022 by Emmanuel Macron, President of the French Republic, alongside the European Union, the G7 and the African Union. Its aim is to strengthen food security in the most vulnerable countries.

The initiative is also part of the Choose Africa programme led by the AFD Group (Agence française de développement, Proparco and Expertise France), which supports African start-ups, micro-businesses and MSMEs by financing and supporting them at different stages of their growth, thanks in particular to local partners supported by the Group.

This project is seen as critical in contributing towards three SDGs – No Poverty (1), Zero Hunger (2) and Decent Work and Economic Growth (8).
Proparco, a subsidiary of Agence Française de Développement Group, has been working with the private sector for over 45 years for a more just and sustainable world.

With an international network of 23 local offices, Proparco works closely with its partners to build sustainable solutions in response to environmental and social challenges in Africa, the Middle East, Asia and Latin America.

Proparco benefits from sector-based expertise as well as a wide range of financial solutions tailored to the different stages of business development, notably thanks to its Digital Africa subsidiary, and its Propulse technical assistance offering designed to scale up the impacts and performance of its partners.