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Nedbank offers $75m offshore finance facility

NEDBANK Zimbabwe has availed a $75 million line of credit facility through its mother company, Nedbank South Africa under which pre-and post-shipment offshore finance will be offered to exporters.

BY MTHANDAZO NYONI

Speaking during the ZimTrade-Banks exports awareness seminar recently, Nedbank Zimbabwe acting business manager Patience Kadivirire revealed that the facility would offer concessionary interest rates.

“The bank is offering pre-and post-shipment offshore finance facilities to all exporters under a $75 million line of credit through Nedbank South Africa. The facility, which at concessionary interest rates can be repaid over six to 12 months based on the export orders and/or outstanding CD 1s (export debtors),” she said.

The bank recently offered nostro advance for exporters (manufacturing included) where the bank advances nostro cash against future exports. The facility can be repaid over six to 12 months based on the projected forex receipts.

However, she did not reveal the quantum of the facility.

Kadivirire said the manufacturing sector remains the driver of the productive sector and the southern regions’ past glory being the country’s manufacturing hub is set to be reignited with increased economic activity.

The key focus, she said, was to drive import substitution products to improve the country’s balance of payments, job creation, and spur domestic demand.

This came as Zimbabwe is importing a significant amount of products that local companies used to manufacture.

“As a bank, we have come up with facilities to assist manufacturers to revamp their operations as well as incentives that will stimulate exports,” Kadivirire said.

“As manufacturers, you may have identified an export market and not have the capacity to process your initial orders .The bank can chip in by advancing a nostro loan which will be repaid from future export receipts.”

She added that “the facility doesn’t have to be secured, as we don’t require tangible security. However, to secure the facility all the exports business will be generated and handled through Nedbank. All CD 1s establishments and acquittals will have to be facilitated through us”.

Kadivirire said under the new dispensation, they have seen new emerging export markets for manufacturers and this facility was coming in handy.

source: newsday

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