Published: 13 February 2014

NMB Bank has signed a $10 million loan agreement with Frenchbased development finance institution Proparco.

The facility has a five-year tenure and is expected to finance local businesses in need of long-term finance.

Speaking at the signing ceremony this morning, NMB group chief executive James Mushore said the facility would counter the problem of expensive funding in the country's banking sector.

"Currently we have short term funding, transitory deposits and high interest rates. Businesses in the country cannot afford such money. This facility will provide them with the long term finance they require. When we lend money we want to lend money responsibly. We want to be able to make a positive impact," he said.

Regional representative of Proparco for Southern Africa Christophe Blanchot said the loan agreement was a sign of the confidence that European institutions now have in the country's banking sector.

"This loan is a sign of trust in the country and in the bank itself. We are yet to overcome some reluctance internally but we have been convinced. Something we also expect is that this money, coming from a development bank will have a catalyst effect over investors particularly on French ones," he said.

Proparco is a development finance institution jointly held by Agence Française de Développement (AFD) and public and private shareholders from the North and South.

Its mission is to catalyze private investment in emerging and developing countries with the aim of supporting growth and sustainable development.
- Rumbidzayi Zinyuke I BH24

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