Afreximbank expands Zimbabwe SME export finance push

Afreximbank has extended a US$15mn SME finance facility to Ecobank Zimbabwe to support small businesses operating in export value chains.

The facility is being provided under Afreximbank’s Export SME Development Programme and will support working capital and capital expenditure for SMEs across agribusiness, manufacturing, healthcare, logistics, technology and creative industries.

The deal is smaller than some of Afreximbank’s larger trade finance programmes, but it has a clear market purpose. Zimbabwean SMEs often face difficulty accessing affordable finance, particularly when they are trying to move into export markets or regional supply chains.

The facility is designed to help businesses finance production, fulfil orders and strengthen participation in intra-African trade.

For banks, the transaction shows how development finance institutions are using local lenders to reach smaller companies that may not be served directly by large multilateral programmes.

The working capital element is important. Exporters can have viable orders but still lack the cash needed to buy inputs, manage inventory or wait for payment after shipment.

The facility also fits the wider African Continental Free Trade Area (AfCFTA) agenda, which depends on smaller businesses having enough liquidity to trade across borders rather than remaining locked into local markets.

For Zimbabwe’s export sector, the support should help reduce one of the practical barriers to growth: access to finance before goods are shipped and paid for.