Stanbic Bank Zimbabwe (Stanbic) on Monday unveiled a special facility under which it will provide financing to struggling companies involved in the export business to meet their capital needs.
Under the initiative, the financial assistance would provide over 60 percent of the capital needs of the businesses.
The facility would be availed to credit worthy firms with supporting export documentation.
Stanbic head of personal and business banking, Patson Mahachi said the facility was aimed at assisting the country boost exports and foreign currency earnings,
“Our efforts in supporting export businesses are meant to assist the Zimbabwean economy as well as to complement the efforts of the Reserve Bank of Zimbabwe”, he said.
The funding will be channelled towards requirements including wages, purchase of inputs and raw materials to prepare for the next shipments pending receipt of foreign proceeds.
Zimbabwean financial institutions have previously been accused of failing to support productive sectors of the economy as they made millions in profits from non-core activities.
The country has for years struggled to overturn its trade deficit as imports continue to outrun exports, which is fuelling foreign currency shortages.
Mr Mahachi said the funding initiative was aimed at assisting the economy bridge the gap between exports and imports.
“Unlocking working capital for exporters is one of our strategies to promote exports as long as there is a guarantee that the proceeds will be sent to Zimbabwe and we monitor these funds to ensure flow of foreign proceeds,” he said.
Horticulture, floriculture as well as producers of citrus, macadamia nuts and oils, hides and skins can also benefit from the facility.
“A few players in industries such as horticulture, hides and skin exporters closed shop as they struggled to acquire the required capital to fund their ventures, yet there is a great market out there,” said Mr Mahachi. — New Ziana.