By Wilis Moyo

Harare – British International Investment (BII) has injected $10 million into NMB Bank Zimbabwe to support the country’s agricultural exports and sustainable farming practices.

NMB Bank, one of Zimbabwe’s leading banking institutions with over 25 years in the industry, will use the loan to address the financing gap in the agricultural sector, which employs approximately 65% of Zimbabwe’s population.

The investment, announced on 15th July 2024, comes as the Government has unveiled the 2024/2025 Crops, Horticulture, Fisheries and Livestock summer plan, which will be implemented to the tune of US$1,6 billion and financed by both the Government and the private sector. The plan focuses on various food and feed crops.

“Agriculture is the backbone of Zimbabwe’s economy,” said Chris Chijiutomi, Managing Director and Head of Africa at BII. “Through providing the much-needed capital through our partner NMB Zimbabwe, we are addressing the financing gap for agribusinesses for better and more sustainable economic output. This is aligned with the country’s priority to modernise and grow the sector, poised to provide better economic opportunities to the larger working population.”

The funding will be used to support on-lending to exporting agribusinesses and those investing in climate-smart practices. Seventy percent of the funding will be allocated to NMB’s agricultural exporter customers, while the remaining 30% will be channeled to customers practicing sustainable agriculture.

“This partnership marks a new chapter of growth, resilience, and prosperity,” said Gerald Gore, NMB Bank’s Chief Executive Officer. “We are excited to be the first bank in the recent past to benefit from such support from BII, and this speaks to vision alignment between the two institutions and our desire to boost agricultural exports for the country. The $10 million commitment comes with a great focus on sustainability. This partnership has the potential to unlock significant growth opportunities within the agricultural sector, contributing to the nation’s economic prosperity.”

British Ambassador to Zimbabwe, Pete Vowles, welcomed the investment, saying:

“We are very excited to see this new investment by BII, the latest in a long history of UK investment in Zimbabwe to grow businesses and economic opportunity. The focus on boosting agricultural exports and sustainable agriculture aligns well with Zimbabwe’s national development priorities, and will help promote food security, increase incomes, and strengthen resilience to climate change. My team and I are working to bring more UK investment to Zimbabwe, and this is an important step on our journey together.”

Dr. John Mushayavanhu, Governor of the Reserve Bank of Zimbabwe, remarked:

“The partnership is a demonstration of confidence in Zimbabwean financial institutions. The credit line supporting agriculture is a crucial step towards realizing the vision of restoring Zimbabwe as the breadbasket of Africa. We hope this initiative will pave the way for further credit lines to be extended to NMB and other Zimbabwean financial institutions.”

Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere, announced to the media that Cabinet had received and noted the 2024/2025 plan that was presented by Lands, Agriculture, Fisheries, Water and Rural Development Minister, Dr Anxious Masuka. Minister Masuka revealed that the budget for the plan was ZiG22 billion, equivalent to US$1,6 billion.

British International Investment is the UK’s development finance institution and impact investor, backed by the UK Government. The investment supports the United Nations’ Sustainable Development Goals, including Zero Hunger, Decent Work and Economic Growth, Industry, Innovation and Infrastructure, and Climate Action.