THE European Investment Bank (EIB Global) and Stanbic Bank Zimbabwe (Stanbic) have launched a €20 million (US$21,42 million) credit line to support female-owned small to medium enterprises (SMEs).
In a statement this week, the European Union (EU) said female SMEs employed a significant number of women nationally.
“The European Investment Bank (EIB Global) and Stanbic have launched a €20 million (ZiG525,9 million) credit line to provide longer-term loans at favourable conditions to small and medium-sized businesses (SMEs) in Zimbabwe,” the EU said.
“The facility will focus on SMEs and businesses owned or run by women, which employ a significant number of women, or which offer services specifically to women.”
More than half the SMEs in Zimbabwe are led by women, with over half of Zimbabwean companies blaming limited credit as a reason to why they do not grow.
“In line with the EU’s Global Gateway which contributes to narrowing the global investment gap worldwide, the EIB-Stanbic facility will address this financing gap with financial tools targeting the needs of women entrepreneurs and advance women's economic empowerment in Zimbabwe,” the EU said.
“It contributes to the 2X Challenge, an initiative to mobilise investment that increases women’s participation in the economy in emerging markets, by improving women’s access to finance, leadership opportunities and quality employment.”
ElB is the lending institution of the EU, owned by its member states.
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Stanbic chief executive officer Solomon Nyanhongo said by supporting SMEs and enterprises owned or run by women, the bank was fostering economic inclusion and national development.
“Through this partnership, we are committed to driving meaningful change and unlocking opportunities for women entrepreneurs and SMEs across Zimbabwe through provision of much-needed medium-term funding,” he said.
