TDB Group extends US$20mln to CBZ Bank facility for ‘key export and hard currency sectors’

By Agencies

HARARE: The Eastern and Southern African Trade and Development Bank Group (TDB Group) has extended a USD 20 million revolving line of credit to Zimbabwe’s CBZ Bank Limited.

The facility will be used by CBZ Bank to provide loans to eligible customers operating in key export and hard currency sectors for capital expenditure and working capital needs.

Commenting on the development, TDB Coverage Executive, Southern Africa Region Gift Moonga said, “By actively collaborating with banks in our region, we play a vital role in strengthening our member states’ overall financial and banking ecosystems.

“Through our collective efforts, we not only foster growth but also promote advancement, ensuring that the region remains resilient and well-positioned to maximize future opportunities.”

TDB Group has effectively positioned itself to support its member states’ banks by providing a number of solutions such as lines of credit to facilitate trade within the continent and the rest of the world.

Gift Moonga TDB Coverage Executive, Southern Africa Region, “By actively collaborating with banks in our region, we play a vital role in strengthening our member states’ overall financial and banking ecosystems.

“Through our collective efforts, we not only foster growth but also promote advancement, ensuring that the region remains resilient and well-positioned to maximize future opportunities.”

Lawrence Nyazema Group Chief Executive CBZ Holdings added, “The USD 20 million revolving line of credit to CBZ Bank is a strategic investment that will bolster Zimbabwe’s key export and hard currency sectors.

“While the fungibility of money means that the benefits will extend beyond CBZ, this funding is poised to have a significant positive impact on the broader Zimbabwean economy.

“We are eager to collaborate with TDB on this initiative, both directly and indirectly. Our commitment to TDB ensures that these funds will be utilized effectively to drive economic growth and development.”

Since 2007, TDB Group and CBZ Bank have been working together and significantly supported trade and private sector development.

TDB Group’s support has “been pivotal in providing essential foreign currency funding for clients in the agribusiness and mining sectors, which has boosted production capacities and export volumes, increased revenue and contributing to job creation by expanding local employment.

“Additionally, the Group’s role in deepening financial markets has helped to bridge the trade finance gap in Zimbabwe, allowing CBZ to provide critical funding to the missing middle—small and medium enterprises.”

Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is an investment-grade African regional development finance group, with the mandate to finance and foster trade, regional economic integration and sustainable development.

With an asset base of USD 10 bn, TDB Group has 25 African member states, which alongside non-regional member countries and institutional investors from Africa, Europe and Asia, form TDB’s community of shareholders.