HDC applauds NMB Bank’s $10m British International Investment facility

The Horticultural Development Council (HDC) has welcomed the announcement by NMB Bank Zimbabwe Limited of a US$10 million loan secured from British International Investment (BII), the UK’s development finance institution and impact investor.

Through its active participation in the Zimbabwe Economic Stability and Transformation (ZEST) Programme, supported by the UK Government, the HDC has identified the funding gap as a key hurdle in Zimbabwe’s path to growth.

This facility, targeted at agriculture exporters, therefore underscores the importance of tailored lending in driving sustainable growth under Zimbabwe’s Horticulture Recovery and Growth Plan.

According to HDC, the dedication of 30 percent of the loan to sustainable farming is particularly commendable.

This will enable HDC members to adopt climate-smart technologies and strategies, such as renewable energy and improved irrigation systems.

This do not only fosters environmental responsibility, but also strengthens the agricultural sector’s resilience in the face of climate change.

Linda Nielsen, chief executive officer (CEO) of HDC, called on other funders to take the leaf from this initiative in supporting the sector.

She said: “Access to finance is crucial for the growth and sustainability of the industry. The HDC urges other financial institutions and stakeholders to take inspiration from this impactful model and continue collaborating to provide similar funding opportunities for our farmers.”

According to NMB, 70 percent of the loan will be used to support on-lending to exporting agribusinesses, and those investing in climate-smart practices.

This will enable them to invest in capital expenditure such as machinery, operation infrastructure like irrigation systems and material imports including fertilisers to enhance their production capabilities.

The remaining 30 percent will be channeled to customers practising sustainable agriculture with projects that promote climate risk mitigation and adaptation. For example, it could help customers to install on-farm renewable energy and energy efficient measures, as well as get access to climate information and weather services to build climate resilience.

The bank also recognises that addressing the financing gap is key in supporting the growth of the agricultural sector which employs approximately 65 percent of Zimbabwe’s population.

Commenting on the facility, NMB Bank CEO Gerald Gore said: “NMB Bank’s collaboration with BII is a significant development for Zimbabwe’s agricultural sector. We are excited to be the first bank in the recent past to benefit from such support from BII and this speaks to vision alignment between the two institutions and our desire to boost agriculture exports for the country.

“The $10 million commitment comes with a great focus on sustainability. This partnership has the potential to unlock significant growth opportunities within the agricultural sector, contributing to the nation’s economic prosperity.”-ebysnessweekly