Bridging the trade finance gap in Zimbabwe

NMB Bank was originally a merchant bank, founded in 1992 by a group of Zimbabwean entrepreneurs who had previously held senior management positions at the World Bank and IFC. The group’s growth enabled it to go public in 1997, simultaneously in Harare (ZSE) and London (LSE), and the bank subsequently obtained a commercial banking license in 2000.

NMB has historically focused on the corporate market and high-end clients, but started to turn towards SMEs in 2014. In 2019, the bank engaged in an extensive digital transformation to increase its effectiveness and develop a comparative advantage. At year-end 2022, it ranked 11th among Zimbabwe’s commercial banks for the size of its balance sheet ($198 million and 3.37% of assets), with a niche position in selected markets: digital banking, private banking and corporate banking.

With the complete transformation of its activities and its economic profitability, it was recognized as the best bank in Zimbabwe in the Zimbabwe Independent Banks & Banking Survey 2022 (see Annex 2). It has also been selected by Zimpost (national postal operator with an extensive nationwide network) as a technical platform for the provision of banking services in its local branches. These achievements demonstrate NMB’s ability to play a leading role in the activities selected, despite its modest size in the market.

Proparco provides guarantees for documentary credit operations for which NMB Zimbabwe is the final beneficiary. Trade finance is a major strategic focus for the development of NMB Zimbabwe. Indeed, it is an entry point for proposing other banking services to importer and exporter clients and foreign currency holders.

The trade finance gap in Zimbabwe is exacerbated by the limited access to credit from international confirming banks and the scarcity of foreign exchange, which results in a shortage of traditional trade finance products and a preference for cash transactions. NMB Zimbabwe is also faced with this situation, the main barrier to its trade finance activity being the confirmation limits (and not the lack of market demand).

Over the next 5 years, this financing is expected to support more than 760 jobs in the companies financed by the bank. 

This project is supporting economic growth and strengthening the country’s financial infrastructure.

The project will thereby contribute to the achievement of Sustainable Development Goal (SDG) #8 (Decent work and economic growth).