CBZ secures US$20 million from TDB

CBZ Bank has received a US$20 million revolving line of credit from the Eastern and Southern African Trade and Development Bank Group (TDB Group) to support export-oriented firms.

TDB is an investment-grade African regional development finance group with the mandate to finance and foster trade, regional economic integration and sustainable development.

With an asset base of US$10 billion, TDB Group has 25 African member states, which, along with non-regional member countries and institutional investors from Africa, Europe and Asia, form TDB’s community of shareholders.
According to TDB, the facility will be used by CBZ Bank to provide loans to eligible customers in key export and hard currency sectors for capital expenditures and working capital needs.

Mr Michael Awori, the TDB Group chief executive, said at the signing ceremony in Harare on Monday that TDB’s goal, as a wholesale bank, was to support member states and ultimately their financial sectors to accomplish their strategic objectives.

“With regional offices in Harare, the success of the group is going to depend on partners on the ground who have shared commitment around delivering impact into the communities that we live and operate in and that is why we have partnered with CBZ.

“Again, the decades of our relationship are a testament to that and we have over the years extended facilities worth over US$200 million to CBZ and look forward to more years of collaboration,” he said.

Mr Gift Moonga, TDB coverage executive, Southern Africa region, said the group had effectively positioned itself to support its member state banks by providing solutions such as lines of credit, to facilitate trade within the continent and the rest of the world.

“By actively collaborating with banks in our region, we play a vital role in strengthening our member states’ overall financial and banking ecosystems.

“Through our collective efforts, we not only foster growth but also promote advancement, ensuring that the region remains resilient and well-positioned to maximise future opportunities,” he said.

Since 2007, TDB Group and CBZ Bank have been working together and significantly supporting trade and private sector development.

The partnership began with TDB Group extending its support to ’s customers in need of working capital and import finance.

Over the years, it has evolved to cover broader financial and developmental support, notably, TDB Group and CBZ Bank have worked jointly to provide substantial assistance to the Government of Zimbabwe through the Ministry of Finance, Economic Development and Investment Promotion.

“TDB Group’s support has been pivotal in providing essential foreign currency funding for clients in the agribusiness and mining sectors, which has boosted production capacities and export volumes, increased revenue and contributed to job creation by expanding local employment.

“Additionally, the group’s role in deepening financial markets has helped to bridge the trade finance gap in Zimbabwe, allowing CBZ to provide critical funding to the missing middle-small and medium enterprises,” said Mr Moonga.

CBZ Holdings chief executive, Mr Lawrence Nyazema, said that outside support for CBZ and given that money is fungible, the US$20 million is certainly going to benefit the entire economy.

“We are aware that TDB is also looking at another indirect transaction that you want to support one of our customers that we have already supported at CBZ, but because they need more capital, TDB, along with other international lenders, is looking at supporting that company in the mining sector.

“We look forward to working with you both directly and indirectly. “Our promise to TDB is to ensure the money goes for its intended use and the economy grows to a higher level than where it is now,” he said.

Mr Nyazema said, with particular reference to the US$20 million line of credit, that it is primarily targeted at exporters.

“The reason the bank is targeting exporters is to create a repayment capacity so that when the tenure of the facility has reached its maturity, it will want to have foreign currency to repay TDB.

“Being able to fully repay facilities and lines of credit is important, not only to CBZ but to the rest of the financial institutions in the land.

“Should information go out there that for whatever reason CBZ has failed to service the facility, it affects other financial institutions?

“Therefore, it is important that we fully meet the terms and conditions of the line of credit,” he said. Mr Nyazema again said, with specific reference to the US$20 million, that the bank has a short-term working capital facility for up to one year and a medium-term capital facility for up to three years.

“It is fairly flexible with regards to how we have structured it and we are grateful to TDB for availing the line of credit and we will ensure that the Zimbabwe economy in general benefits and the multiplier effect that we want when we bring in these lines of credit is realised,” he said.

Established in 2004, CBZ is the largest bank in Zimbabwe, holding the top spot in terms of capital and reserves, total deposits and advances.-chroncile