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Michelle Moyo, [email protected]

NMB Bank Zimbabwe Limited has taken a significant step towards supporting the country’s agricultural growth, announcing the securing of a US$10 million loan facility from British International Investment (Bll) to boost agricultural exports and promote sustainable farming practices across the country.

The move is expected to strengthen the bank’s commitment to the agricultural sector, foster economic growth and contribute to the nation’s food security and Sustainable Development Goals. This development is also anticipated to contribute to the nation’s overall economic development and prosperity, creating a ripple effect that will resonate throughout the entire value chain.

As a result, farmers, producers, and exporters will benefit from improved access to funding, technology, and markets, ultimately leading to increased productivity, competitiveness, and export earnings. The facility positions NMB Bank as one of the prime supporters of the agriculture sector’s sustainability efforts. This is the first financial service debt financing from Bll in Zimbabwe, reflecting the organisation’s commitment to support the country’s banking sector.

About 70 percent of the funding will be allocated to NMB’s agricultural exporter customers, which will enable them to invest in capital expenditure such as machinery, operation infrastructure such as irrigation systems and material imports including fertilisers to enhance their production capabilities.

The remaining 30 percent will be channelled to customers practising sustainable agriculture with projects that promote climate risk mitigation and adaptation. For instance, it will help customers to install on-farm renewable energy and energy efficient measures as well as get access to climate information weather services to build resilience .

In a statement, British Ambassador to Zimbabwe, Mr Peter Vowles, expressed gratitude towards the new investment by the Bll, the latest in a long history of UK investment in Zimbabwe to grow business and economic interests. “The focus on boosting agricultural exports and on sustainable agriculture aligns well with Zimbabwe’s national development priorities and will help promote food security and exports, increase incomes and strengthen resilience to climate change,” he said.

“My team and I are working to bring more UK Investment to Zimbabwe and this is an important step on our journey together.” Managing director and head of Africa Bll, Mr Chris Chijiutomi, said agriculture is the backbone of Zimbabwe’s economy and that by providing the much-needed capital through the partnership with NMB Zimbabwe was addressing the financing gap for agribusinesses for better and more sustainable economic output.

“This and aligned with the country’s priority to modernise and grow the sector, poised to provide better economic opportunities to the larger working population,” he said. NMB Bank’s chief executive officer, Mr Gerald Gore, said the bank’s collaboration with Bll was a significant development for Zimbabwe’s agricultural sector.

“We are excited to be the first bank in the recent past to benefit from such support from Bll and this speaks to vision alignment between the two institutions and our desire to boost agriculture exports for the country,” he said. “The $10 million comes with a great focus on sustainability, this partnership has the potential to unlock significant growth opportunities within the agricultural sector, contributing to the nation’s economic prosperity,” said Mr Gore.

Reserve Bank Governor, Dr John Mushayavanhu, further outlined that the partnership is a demonstration of confidence in Zimbabwean financial institutions. “The credit line supporting agriculture is a crucial step towards realising the vision of restoring Zimbabwe as the breadbasket of Africa,” he said.  “We hope that this initiative will pave the way for further credit lines to be extended to NMB and other Zimbabwean financial institutions.” — @Lo7246Lovelyn