December 1, 2023

Investment Banking

Let Your Investment Banking Do The Walking

Zimbabwe: European Investment Bank Credit Facility Indicates Confidence in Local Banks – Govt

Government has hailed the European Investment Bank’s (EIB) €12,5 million credit facility extended to Zimbabwe through First Capital Bank (FCB) saying the development indicates rising confidence in the country’s local banks.

First Capital Bank Limited in partnership with the EIB and the European Union Tuesday secured a developmental line which is set to develop eligible investment projects undertaken by Small to Medium Enterprises (SMEs) and MidCap companies under First Capital Bank Limited locally.

This credit line is part of the Zimbabwe Private Sector Facility from the Impact Finance Envelope of the Investment Facility (IF), that is extended by the European Investment Bank to a group of financial institutions located in Zimbabwe.

Addressing delegates on the occasion to mark the EIB Official Signing Ceremony, Finance Ministry’s permanent secretary, George Guvamatanga said the collaboration confirms surging confidence in local banks.

“With EIB increasing its footprint, it is evidence of their confidence and trust in the abilities of our local banks.

“We are encouraged by this and look forward to more opportunities that can be availed to local businesses. It is up to us to exhibit our expertise and set up robust frameworks to ensure that maximum impact is realised through these efforts,” he said.

He said the facility will provide a new channel for access to much needed long-term financing, cost effective lending and working capital relief that will allow our businesses to become more focused on growth and developing sustainable means to exploit ever available opportunities in our economy.