The African Development Bank (AfDB) sanctioned a $15 million fund for NMB Bank Zimbabwe to aid local businesses, specifically small and medium-sized enterprises (SMEs). This funding through the Trade Finance Transaction Guarantee facility marks AfDB’s inaugural collaboration with NMB, a registered commercial bank with a strong focus on supporting SMEs.

The facility provides a 100% guarantee to international banks against non-payment risk on NMB’s trade finance transactions for SMEs and local businesses involved in agri-business and trade distribution chains within Zimbabwe.

AfDB foresees this initiative facilitating trade volumes exceeding $100 million by 2026, which will help reduce Africa’s trade finance gap. Moreover, it aims to enhance finance accessibility and foster intra-African trade, particularly between Zimbabwe, SADC, and other African regions.

Lamin Drammeh, AfDB’s Head of Trade and Finance, praised this development, envisioning improved trade flows among the targeted groups. He emphasized its alignment with AfDB’s trade finance program objectives, particularly in supporting SMEs, women-owned businesses, farmers, and local enterprises by integrating them into crucial value chains regionally and globally.

In the third quarter, NMB Bank exhibited significant financial growth, recording an operating income of ZWL 397 billion for the nine months ending September 30, 2023—a remarkable 245% surge from the ZWL 115 billion in the same period of the prior year. This surge primarily stemmed from non-interest income generated through the bank’s digital channels. Notably, property revaluations and exchange rate gains also contributed substantially.

As of September 30, 2023, NMB Bank’s total assets reached ZWL 1.1 trillion, marking a 151% increase from December 31, 2022, primarily propelled by amplified customer deposits.

The Bank witnessed a staggering 99% surge in customer deposits, escalating from ZWL 174 billion as of December 31, 2022, to ZWL 346.3 billion by September 30, 2023.

Moralist Festus
Moralist Festus
Moralist Festus is a writer, journalist, and newswriter at Business World Africa, where he focuses on delivering Business News in Africa. Also, he has keen passion for artificial intelligence, and philosophy.

Latest articles

Related articles

Leave a reply

Please enter your comment!
Please enter your name here