daglous masveta
Business Reporter
Proparco is providing Stanbic Bank Zimbabwe with a EUR 5 million EURIZ facility to support its ability to offer long-term financing to local farmers operating in the Zimbabwean agricultural sector.
The signing ceremony was held in Harare on 29 October in the presence of representatives from Proparco, Stanbic Bank Zimbabwe, the French Embassy and the EU Delegation to Zimbabwe.
In Zimbabwe, access to finance and in particular term finance, is a major constraint for local farmers.
The EUR 5 million EURIZ facility from Proparco to Stanbic Zimbabwe benefits from European Union financial support and is contributing to the Team Europe Initiative on Greener and Climate Smart Agriculture.
It will share the risk associated with financing small and medium-sized enterprises (SMEs) operating in the agriculture sector, thus increasing the bank’s ability to finance the economy.
“This operation demonstrates the priority accorded by Proparco to supporting the private sector in developing countries, particularly in high-impact sectors like agriculture.
Proparco is pleased to be able to count on a key partner like Stanbic Bank Zimbabwe for the implementation of such important initiatives” said Steven Gardon, regional director of Proparco for Southern Africa.
“Zimbabwe is our home, and we are committed to driving its growth by creating sustainable opportunities for our people. This facility represents a significant milestone for our institution and the farmers we serve.
“By empowering these farmers, we are not only investing in their future but also contributing to the broader economic growth of our country.
Partnerships like these enable us to deepen our impact, transforming lives and communities while fostering economic resilience.
“We are grateful to Proparco for this facility, and we look forward to further collaboration as we work together to build a more prosperous Zimbabwe”, said Solomon Nyanhongo, chief executive officer of Stanbic Bank Zimbabwe.
This operation is part of the Food and Agriculture Resilience Mission (FARM) initiative, launched in 2022 by Emmanuel Macron, President of the French Republic, alongside the European Union, the G7 and the African Union.
It aims to strengthen food security.
This initiative is also part of the Choose Africa programme led by the AFD Group (Agence française de dévelopement, Proparco and Expertise France), which supports African start-ups, micro-businesses and MSMEs by financing and supporting them at different stages of their growth, thanks to local partners supported by the group.
This project is foreseen to contribute towards three SDGs – no poverty, zero hunger, decent work and economic growth.
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