Zimbabwe News

AfDB approves US$15 million funding for Zimbabwe’s First Capital Bank

The African Development Bank (AfDB) has approved a US$15 million funding deal for Zimbabwe’s First Capital Bank, which will use the proceeds to provide trade finance to SMEs and women-owned businesses, reported the Global Trade Review.

Of the US$15 million, US$7.5 million is a direct line of credit and the other US$7.5 million is for guarantees to overseas confirming banks, covering non-payment risk taken on First Capital’s trade finance transactions with SMEs.

The AfDB said the financing “will provide the much-needed hard currency financing to support First Capital Bank to close its trade finance gap and expand its trade finance support for SMEs and local corporates in Zimbabwe”.

The package, which was approved on April 30, will help spur Zimbabwe’s inter-African trade and will “catalyse” some US$146 million in trade over the next three years, according to the AfDB.

Moono Mupotola, the AfDB’s Zimbabwe country manager, said:

The facility is expected to support the importation of strategic commodities and promote the integration of Zimbabwe’s economy into regional and global trade markets, which are essential for the country’s growth.

Tapera Mushoriwa, CEO of First Capital Zimbabwe, said the package aims to bolster the bank’s trade finance services in Zimbabwe, across Africa, and globally.

First Capital was known as Barclays Bank until 2017 when the Mauritius-headquartered First Capital group bought the UK lender’s majority share in the bank.

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