British International Investment backs Zimbabwe's agriculture sector
British International Investment backs Zimbabwe's agriculture sector
NMB Bank Zimbabwe has secured a $10 million loan from BII to support agricultural exporters and sustainable farming practices.
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NMB Bank Zimbabwe has secured a $10 million loan from British International Investment (BII), the UK’s development finance institution and impact investor, to support agricultural exporters and sustainable farming practices in the country.
This is the first financial services debt financing from BII in Zimbabwe, reflecting the organisation’s commitment to support the country’s banking sector.
Seventy per cent of the funding will be allocated to NMB’s agricultural exporter customers. This will enable them to invest in capital expenditure such as machinery, operation infrastructure like irrigation systems and material imports, including fertilisers, to enhance their production capabilities.
The remaining 30% will be channelled to customers practising sustainable agriculture with projects that promote climate risk mitigation and adaptation. For example, it could help customers to instal on-farm renewable energy and energy efficient measures, as well as get access to climate information and weather services to build climate resilience.
Chris Chijiutomi, managing director and head of Africa at BII said: “Agriculture is the backbone of Zimbabwe’s economy. Through providing the much-needed capital through our partner NMB Zimbabwe, we are addressing the financing gap for agribusinesses for better and more sustainable economic output. This is aligned with the country’s priority to modernise and grow the sector, poised to provide better economic opportunities to the larger working population.”
Gerald Gore, NMB Bank’s chief executive officer said: “NMB Bank's collaboration with BII is 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 BII and this speaks to vision alignment between the two institutions and our desire to boost agriculture exports for the country. The $10 million commitment 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.”
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