CABS secures US$25M

By Ndafadza Madanha

FINANCIAL institution CABS has secured a US$25m trade facility loan from the African Development Bank (AFDB) for onwards lending to the private and SMEs sector.

Speaking at the signing ceremony CABS managing director Simon Hammond said the loan will target industries that are keen to retool and bolster their export capacity.

The credit line has a tenor of three and a half years with an interest of libor plus seven.

“This facility will no doubt go a long way in supporting our local industry include.ing, manufacturing and exporting companies as a whole. These exporting companies will in turn generate foreign currency and this will obviously contribute to the economic revival of Zimbabwe,” said Hammond.

Afdb country manager Damoni Kitabire said the trade finance agreement was a reflection of the institution strong commitment to Zimbabwe as it pursues it economic reform agenda.

“It marks the beginning of a new relationship not only between Afdb and CABS, but also one that that we believe will potentially extend to the broader commercial banking sector.

It is our hope that this intervention will complement the Government of Zimbabwe’s current efforts which seek to revitalize the economy by among other interventions, improving access to affordable credit for Small to Medium Enterprises whilst supporting the country’s economic transformation”.

He said the facility will be used to provide medium term foreign currency liquidity specifically for trade finance purposes.

Zimbabwean financial instituitions are struggling to secure trade finance lines from the international market with tenors in excess of 270 days.

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