Zimbabwe: AfDB grants $25m credit line to support trade finance
It will support the expansion of CABS as a provider of trade finance to local firms.The African Development Bank has approved a $25 million (€22.1 million) line of credit to the Central Africa Building Society of Zimbabwe (CABS).
This facility will support the expansion of CABS' operations as a provider of trade finance to local firms as well as small and medium-sized enterprises within Zimbabwe's tradable sector.
The AfDB said in a statement that the resultant credit support will provide for the importation of critical inputs such as agro chemicals, pesticides, farm machinery, spares and equipment, which Zimbabwe is in dire need of to revive its agricultural and manufacturing sectors.
It added that the line of credit
will also foster financial sector strengthening and generate more tax revenue through import duties and higher corporate profits.
It is expected that the facility will finance approximately $150 million of trade over a three and half year period.