Release date: 4 August 2023
Promoter – Financial Intermediary
STANBIC BANK ZIMBABWE LTDLocation
Description
The facility provides funding to Stanbic Zimbabwe to finance limited scale projects undertaken by private sector entities, notably small and medium sized enterprises (SMEs).
Additionality and Impact
The facility provides funding to Stanbic for on-lending to eligible small and medium enterprises (SMEs) and Midcaps, with a focus on women owned or managed businesses. As such, it will tackle the long-standing credit constraints for SMEs by improving access to credit and tailoring loan terms to the specificities of women led businesses. The facility will carry longer tenors than commonly available in Zimbabwe thereby supporting Stanbic to diversify and stabilise its funding structure while ensuring final beneficiaries access financing that matches the economic life of assets financed.
The project is aligned with national, EU and EIB priorities as it aims to enhance inclusive growth and sustainable economic development in Zimbabwe by increasing access to finance to SMEs with a specific focus on businesses run and/or managed by women. At the national level, the project responds to a number of national policies and planning frameworks including the National Development Strategy (2021-2025) which supports the integration of gender mainstreaming across all sectors and recognizes gender equality as a fundamental pillar to achieve equitable, sustainable and inclusive socio-economic development. At the EU level, the project in line with the Multiannual Indicative Programme 2021-2027 for Zimbabwe and the Team Europe Initiative Gender Equality and Women's Empowerment, in particular its fourth objective to "promote equality and equitable access to economic opportunities for woman and men". It also contributes to several Sustainable Development Goals.
Objectives
The aim is to enhance access to finance for SMEs, in particular those carrying out projects impacting positively on gender equality and women's economic empowerment, in line with the 2X Challenge Criteria
Sector(s)
- Credit lines - Credit lines
Proposed EIB finance (Approximate amount)
EUR 20 million
Total cost (Approximate amount)
not applicable
Environmental aspects
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Procurement
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Status
Signed - 10/12/2024
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).