AfDB Backs NMB Bank with $15M Trade Finance Guarantee for Zimbabwe SMEs

The African Development Bank (AfDB) Group has approved a $15 million Trade Finance Transaction Guarantee facility for NMB Bank in Zimbabwe in an effort to support small and medium-sized enterprises (SMEs) and local businesses in the country.

Recognized for its strong SME credentials, NMB Bank will receive a 100% guarantee on trade finance transactions with international confirming banks to benefit SMEs and local corporates involved in agri-business and trade distribution value chains in Zimbabwe. The primary objective is to generate over $100 million in trade volumes by 2026, effectively reducing the trade finance gap and enhancing access to finance for regional businesses.

In addition to supporting local businesses, the facility is expected to promote intra-Africa trade among Zimbabwe, the Southern African Development Community (SADC), and the rest of the continent, ultimately contributing to the economic growth and development of the region.

As stated by AfDB’s Zimbabwe Country Manager Moono Mupotola, SMEs and other domestic firms encounter challenges in accessing trade finance compared to larger corporations. The transaction guarantee facility serves as a strategic tool to reinforce correspondent banking relationships for NMB while addressing Zimbabwe’s trade finance gap.

Lamin Drammeh, AfDB’s Head of Trade Finance, emphasized the importance of the trade intervention in alignment with the bank’s objectives to support SMEs, women-owned businesses, farmers, and local enterprises in Africa. Through the integration of these businesses into key value chains, the initiative aims to enhance regional and global trade opportunities for them.

Established in 1992 by a group of Zimbabwean entrepreneurs, NMB Bank is a notable commercial bank listed on the Zimbabwe Stock Exchange and a subsidiary of NMBZ Holdings Limited. The bank offers a wide range of banking services to corporates, SMEs, and individuals and has earned several awards for service excellence due to its innovative approach.

With 13 branches and 102 agencies, NMB Bank is progressively establishing itself as a systemic bank in Zimbabwe, offering a comprehensive suite of services in Banking, Microfinance, Real Estate, and Bancassurance.

For media inquiries, please contact Romaric Ollo Hien from the Communication and External Relations Department at [email protected]. Technical contacts for the facility include Bleming Nekati, Regional Lead for the Private Sector, and Samson Kasuka, Senior Investment Officer focused on Trade Finance and the Financial Sector.