Zimbabwe: Afreximbank Commits US$190 Million to Boost Trade Finance, SMEs and Energy Infrastructure
Sector: Trade Finance – Supply Chain – African Trade | Country: Zimbabwe
Standfirst
The African Export-Import Bank (Afreximbank) has signed a US$190 million financing package with Zimbabwe’s CBZ Bank Limited to strengthen trade finance, expand lending to small and medium-sized enterprises (SMEs) and support critical energy infrastructure. The package is expected to improve access to finance for exporters while reinforcing the country’s logistics and industrial competitiveness.
Strengthening Trade Finance to Support Zimbabwean Businesses
Afreximbank has concluded three financing agreements worth a combined US$190 million with CBZ Bank Limited, one of Zimbabwe’s leading commercial banks. Signed in El Alamein, Egypt, the facilities are designed to expand the bank’s capacity to provide financial solutions to businesses engaged in domestic and international trade.
The largest component is a US$150 million revolving trade finance facility, which will enable CBZ Bank to issue letters of credit and other trade finance instruments for Zimbabwean companies. The facility is expected to help address Africa’s persistent trade finance gap, which continues to constrain business growth and cross-border commerce across the continent.
By improving access to working capital and international payment guarantees, the facility aims to strengthen the ability of Zimbabwean exporters and importers to participate more effectively in regional and global markets.
Dedicated Support for Small and Medium-Sized Enterprises
The financing package also includes a US$20 million SME facility, structured in two tranches, to strengthen CBZ Bank’s lending capacity for businesses involved in trade and trade-related activities.
Beyond providing financing, the programme is expected to support capacity-building initiatives that will help SMEs improve their financial management and expand their participation in regional value chains.
For many Zimbabwean SMEs, limited access to affordable trade finance remains one of the main barriers to growth, particularly for companies seeking to scale up exports under the African Continental Free Trade Area (AfCFTA).
Energy Investment to Improve Supply Chain Resilience
A further US$20 million facility, also divided into two tranches, will support investments in Zimbabwe’s electricity sector.
The funding will enable CBZ Bank to participate in an already approved US$210 million syndicated financing facility for the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), the country’s state-owned electricity transmission and distribution utility.
Strengthening electricity infrastructure is expected to reduce power shortages that affect manufacturing, warehousing, logistics operations and transport services, while improving energy security across Zimbabwe and the wider Southern African Development Community (SADC) region.
Trade Finance as a Driver of Logistics Competitiveness
According to Afreximbank, the financing package will directly and indirectly support export-oriented businesses by improving access to foreign currency, facilitating international trade transactions and easing pressure on Zimbabwe’s foreign exchange reserves.
The Bank continues to position trade finance as a strategic instrument for reducing Africa’s financing gap through a combination of financial products, regulatory support, capacity building and strategic partnerships.
This integrated approach aims to strengthen African supply chains, facilitate intra-African trade and improve the competitiveness of businesses operating across regional markets.
Why It Matters
Trade finance remains one of the most critical enablers of efficient supply chains and cross-border commerce in Africa. Without adequate access to letters of credit, guarantees and working capital, many businesses struggle to participate fully in international trade.
By combining support for trade finance, SMEs and energy infrastructure, Afreximbank is addressing three of the main constraints to economic competitiveness. For Zimbabwe, the US$190 million package is expected to enhance export capacity, strengthen supply chain resilience and support industrial growth, while contributing to the country’s Vision 2030 agenda and the broader objectives of the AfCFTA.
