Local farmers struggling to access long-term finance have received a significant boost with the launch of a EUR 5 million EURIZ facility provided by Proparco a subsidiary of Agence Française de Development Group to Stanbic Bank Zimbabwe.
This facility, announced at a signing ceremony in Harare recently, aims to support local farmers by increasing the availability of sustainable financing options within the country’s agricultural sector.
Attending the event were representatives from Proparco, Stanbic Bank Zimbabwe, the French Embassy, and the European Union Delegation to Zimbabwe.
The new EURIZ facility, backed by European Union financial support, is part of the Team Europe Initiative on Greener and Climate-Smart Agriculture.
It aims to mitigate the risk associated with financing small and medium-sized enterprises (SMEs) in agriculture, thus expanding Stanbic Bank’s capacity to finance Zimbabwe’s economy.
“This operation demonstrates the priority accorded by Proparco to supporting the private sector in developing countries, particularly in high-impact sectors like agriculture. Proparco is pleased to be able to count on a key partner like Stanbic Bank Zimbabwe for the implementation of such important initiatives” said Steven Gardon, Regional Director of Proparco for Southern Africa.
The collaboration with Proparco is seen as a breakthrough for Stanbic Bank Zimbabwe, which is committed to supporting local farmers in overcoming financial barriers.
The bank’s Chief Executive Officer, Solomon Nyanhongo, highlighted the facility’s role in promoting growth across the country.
“Zimbabwe is our home, and we are committed to driving its growth by creating sustainable opportunities for our people. This facility represents a significant milestone for our institution and the farmers we serve. By empowering these farmers, we are not only investing in their individual futures but also contributing to the broader economic growth of our country.” Nyanhongo said.
He also noted that the partnership would help transform lives and build economic resilience in communities.
“Partnerships like these enable us to deepen our impact, transforming lives and communities while fostering economic resilience. We are grateful to Proparco for this facility, and we look forward to further collaboration as we work together to build a more prosperous Zimbabwe,” he added
The EURIZ facility aligns with several initiatives designed to boost food security and economic resilience. This project contributes to the Food & Agriculture Resilience Mission (FARM) initiative, launched in 2022 by French President Emmanuel Macron in collaboration with the European Union, the G7, and the African Union. The FARM initiative aims to bolster food security in vulnerable nations.
Additionally, the facility is part of the Choose Africa program led by the Agence Française de Development (AFD) Group, of which Proparco is a member. Choose Africa seeks to support African start-ups, micro-businesses, and MSMEs by financing and mentoring them through various growth phases. Through initiatives like these, the AFD Group and its partners are committed to strengthening the private sector and driving development in Africa.
With this new funding mechanism, Proparco and Stanbic Bank Zimbabwe are expected to contribute towards achieving three key Sustainable Development Goals: No Poverty (Goal 1), Zero Hunger (Goal 2), and Decent Work and Economic Growth (Goal 8).
