NMB Bank, a leading commercial bank in Zimbabwe with a strong focus on Small and Medium Enterprises (SMEs), is set to benefit from a significant boost in trade finance. The African Development Bank Group (AfDB) recently approved a USD 15 million Trade Finance Transaction Guarantee facility for NMB Bank, beginning a strategic partnership between the two entities.
This milestone initiative aims to support SMEs and local corporates engaged in agri-business and trade distribution value chains within Zimbabwe. The facility will offer a 100% guarantee to international confirming banks (CBs) for the non-payment risk associated with NMB's trade finance transactions.
This addresses immediate financial needs and contributes to reducing the continent's trade finance gap. The initiative aligns with AfDB's broader trade finance program objectives, with a particular focus on supporting SMEs.
SMEs and local firms often face challenges in accessing trade finance compared to their larger counterparts. The facility is poised to enhance correspondent banking relationships for NMB Bank and, in the process, play a role in reducing Zimbabwe's trade finance gap.
The approval of the USD 15 million Trade Finance Transaction Guarantee facility represents a pivotal moment for NMB Bank and underscores the commitment of AfDB to supporting economic growth and inclusivity in Zimbabwe. As this partnership unfolds, NMB Bank looks forward to leveraging the facility to further empower SMEs and local corporates.