First Capital Bank Limited in partnership with the European Investment Bank have secured a developmental line of credit to the tune of EUR 12,5 Million. The funding is set to develop eligible investment projects undertaken by Small to Medium Enterprises (SMEs) and MidCap companies under First Capital Bank locally. This credit line is part of the Zimbabwe Private Sector Facility from the Impact Finance Envelope of the Investment Facility (IF), that is extended by the European Investment Bank to a group of financial institutions located in Zimbabwe.
This funding opportunity aims to accelerate economic growth in pertinent industries through employment creation, commerce upliftment and promotion of environmentally responsible businesses for organisations that meet the qualifying criteria. Key objective of the strategic alliance is to address the existing financing gaps within these segments and raise the production profile in key sectors that will directly impact the overall productivity of the country. A few exclusions under this facility are Tobacco farming, Mining and Ammunition to align with the overall goals of the funding agreement. Much growth and positive output is expected to emanate from this transaction as a robust framework is in place to assure responsible behaviour across the board.
Speaking on the official signing ceremony of this new line of credit at Meikles Hotel, First Capital Bank Chairman, Patrick Devenish said; ‘We are excited to be launching this credit line as it unlocks diverse opportunities for our clients who have steadily grown their businesses and positioned themselves for prospects such as this. Sterling collaborative efforts have been apparent at every step of this journey, echoing our value system that challenges us to create value within existing relationships.
First Capital Bank Limited has set firm foundations within it chosen markets and continues to seek growth through mutually beneficial partnerships and leveraging its competencies. Speaking on the credit facility, Acting Managing Director, Fanuel Kapanje said; ‘Our goal is to attain incremental growth across our business where the impact has far-reaching positive effects within the broader economy and communities that we serve. To achieve this, we are always looking for opportunities to strategically position ourselves and navigate towards sustainable development’.
“The European Investment Bank is committed to ensuring that Zimbabwean entrepreneurs and businesses can invest through new cooperation with local financial partners. As part of Team Europe, the European Investment Bank is pleased to provide EUR 12.5 million of new targeted financing to First Capital Bank to accelerate private sector investment, create jobs and accelerate the post-pandemic recovery of Zimbabwe. This week’s business financing agreements totalling EUR 25 million shows how Team Europe and African partners are joining forces to back business growth.” said Jim Hodges, European Investment Bank Regional Representative in Southern Africa.
“The EIB private sector facility with FCB follows a similar package agreed earlier with CABS. This facility addresses one of the key bottlenecks to doing business in Zimbabwe which is access to finance. It also transforms the Team Europe’s- that is the European Union institutions and EU Member States’- joint COVID-19 response package into concrete support. As we continue to work towards a more resilient post-pandemic Zimbabwe, we look forward to see how this facility supports the private sector in the challenging economic environment.” said Ambassador Timo Olkkonen, Head of the European Union Delegation to Zimbabwe.
The bank is appreciative of strategic alliances such as this as they enable them to realise their overall organisational purpose which is to enable people to achieve their extraordinary in their areas of expertise. Funding is an essential element for all business growth and as such the bank shall continue to cultivate relationships provide relevant opportunities.
Source: European Investment Bank