CBZ secures US$10m facility to fund SMEs

Published: 3 hours ago

CBZ Bank has signed a US$10 million factoring and supply chain finance line of credit with the African Export-Import Bank (Afreximbank), a move the bank says will revolutionise financing for Zimbabwean small and medium-sized enterprises (SMEs).

The deal, inked during the ongoing Intra-African Trade Fair (IATF 2025), marks the second agreement CBZ has secured at the continental showcase, where deals worth an estimated US$44 billion are expected to be concluded.

CBZ Bank's newly appointed managing director, Mrs Valeta Mthimkhulu, described the partnership as a historic milestone, making CBZ the first commercial bank in Zimbabwe to offer factoring as a form of financing.

Factoring allows businesses to sell their unpaid invoices, or accounts receivable, to a specialised third-party at a discount in exchange for immediate cash. This provides working capital without incurring debt, as the factor collects payments directly from customers while charging a fee for the service.

"It is an honour and a privilege today as we mark the transformative milestone of signing, on behalf of CBZ Bank Limited, the US$10 million factoring and supply chain finance line of credit," Mrs Mthimkhulu said.

She highlighted the facility's potential to improve access to finance for SMEs, noting that factoring plays a critical role in financial inclusion by facilitating open account financing.

"Factoring makes it easier for SMEs to access different forms of financing, helping them overcome financial barriers and grow their businesses," she explained.

In addition to the credit facility, CBZ has also been onboarded onto the Africa Trade Gateway, an initiative by Afreximbank in collaboration with the African Union. Mrs Mthimkhulu said both developments would significantly reduce financing costs for Zimbabwean SMEs and drive economic growth.

"We believe these milestones together will make financing more accessible to SMEs in Zimbabwe, drive financial growth, and remove some of the obstacles preventing SMEs from thriving," she said.

CBZ Holdings chief executive officer, Mr Lawrence Nyazema, emphasised the transformative potential of the factoring facility, noting that Zimbabwe has seen little activity in this space since the days of the erstwhile UDC.

Mrs Mthimkhulu signed on behalf of CBZ Bank, while Kanayo Awani, executive vice president of Afreximbank, signed on behalf of her organisation.

The facility is expected to strengthen Zimbabwe's SME sector, increase liquidity, and expand the use of innovative financial solutions in the country.
- the herald

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