Ag Banking News

15 JULY 2024— British International Investment supports NMB Bank Zimbabwe to boost agricultural exports and support sustainable farming .

British International Investment (BII), the UK’s development finance institution and impact investor, has announced a $10 million loan to NMB Bank Zimbabwe to support agricultural exporters and sustainable farming practices in the country. The loan aims to address the financing gap in Zimbabwe’s agricultural sector, which employs about 65% of the population, and is crucial for the sector's growth

The facility positions NMB Bank as a leading supporter of sustainability efforts in agriculture. This marks BII’s first Financial Services debt financing in Zimbabwe, demonstrating its commitment to supporting the country’s banking sector.

Seventy percent of the funding will be allocated to NMB Bank’s agricultural exporter customers, enabling them to invest in capital expenditure such as machinery, operational infrastructure like irrigation systems, and material imports, including fertilizers. The remaining 30 percent will be directed towards customers engaged in sustainable agriculture projects that promote climate risk mitigation and adaptation, such as installing on-farm renewable energy and energy-efficient measures, and accessing climate information and weather services.

Pete Vowles, British Ambassador to Zimbabwe, stated, “We are very excited to see this new investment by BII, the latest in a long history of UK investment in Zimbabwe to grow businesses and economic opportunity. The focus on boosting agricultural exports and sustainable agriculture aligns well with Zimbabwe’s national development priorities, promoting food security, increasing incomes, and strengthening climate resilience. My team and I are working to bring more UK investment to Zimbabwe, and this is an important step on our journey together.”

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 via our partner NMB Zimbabwe, we are addressing the financing gap for agribusinesses for better and more sustainable economic output. This aligns with the country’s priority to modernize and grow the sector, providing better economic opportunities to the larger working population.”

Gerald Gore, CEO of NMB Bank, commented, “NMB Bank’s collaboration with BII is a significant development for Zimbabwe’s agricultural sector. We are excited to be the first bank in recent history to benefit from such support from BII, reflecting vision alignment between the two institutions and our desire to boost agricultural exports for the country. The $10 million commitment focuses on sustainability and has the potential to unlock significant growth opportunities within the agricultural sector, contributing to the nation’s economic prosperity.”

This investment supports the United Nations’ Sustainable Development Goals (SDGs) including SDG 2 on Zero Hunger, SDG 8 on Decent Work and Economic Growth, SDG 9 on Industry, Innovation, and Infrastructure, and SDG 13 on Climate Action.

Source: https://www.bii.co.uk/