Staff Writer

Central Africa Building Society (CABS) has secured a US$30 million financing partnership with British International Investment (BII) to expand access to long-term funding and trade finance for Zimbabwe’s agriculture and food manufacturing sectors.

The facility, comprising a US$20 million term loan signed this week and a planned US$10 million trade finance facility, is expected to strengthen the capacity of local businesses to invest in productive equipment, increase output and access export markets.

The partnership marks BII’s first investment partnership with CABS and its return to Zimbabwe after more than 13 years, while providing CABS with its second offshore facility from Europe following a European Investment Bank facility concluded in 2021.

CABS managing director Mehluli Mpofu said the agreement represented an important milestone for the bank and the productive sectors it serves.

“We are gathered here to formalise a US$30 million partnership with British International Investment plc (BII),” Mr Mpofu said at the signing ceremony.

“This agreement is a validation of our institutional strength, financial stability and operational philosophy — one that always places emphasis on strategic partnerships.”

The financing comes as Zimbabwe seeks to increase agricultural production, strengthen food security and expand exports, while businesses continue to require access to longer-term United States dollar funding for capital expenditure and trade.

Mpofu said the facility would allow CABS to provide targeted financial support to businesses, particularly small and medium-sized enterprises (SMEs), while helping export-oriented companies replace ageing machinery and expand production capacity.

“A line of credit is more than just financial capital on our balance sheet, it is a catalyst for economic growth,” he said.

The bank intends to use the financing to provide affordable, longer-term trade finance and capital expenditure loans to SMEs seeking to improve productivity, efficiency and employment creation.

Export-focused businesses in agriculture and food manufacturing are also expected to benefit through funding for machinery and increased production capacity.

BII said the partnership was designed to address structural financing gaps in Zimbabwe’s agricultural sector, where businesses can face difficulties obtaining long-term United States dollar funding and trade finance.

The financing will support eligible businesses involved in areas including fertiliser, food and agricultural commodities, agricultural machinery and inputs, as well as other approved productive equipment.

BII chief investment officer and acting chief impact officer Maria Smith said agriculture required both long-term capital and trade finance if businesses were to expand and reach new markets.

“Agriculture is central to Zimbabwe’s economy, but businesses need access to both long-term capital and trade finance if they are to invest, grow and reach new markets,” Smith said.

“Our first partnership with CABS brings these forms of financing together to address barriers across the investment and trading cycle.”

She said the partnership would also support more sustainable and climate-resilient lending as BII sought to deepen access to finance in productive sectors.

For CABS, agriculture is already a significant component of its lending portfolio.

As at June 30, 2026, the bank had allocated 28 percent of its loan portfolio, equivalent to US$96 million, to agriculture.

The bank has financed activities across the agricultural value chain, including horticulture, sugar production, animal husbandry, crop production, sugarcane, macadamia nuts and grain.

Mpofu said the new facility would enable CABS to extend financing further along the value chain, including into food processing.

Through its corporate banking division, CABS has also worked with merchants and aggregators to increase agricultural output, while its business banking arm has provided funding to smallholder farmers and SMEs.

The bank’s retail and agency banking network is expected to complement the financing by providing decentralised financial services to businesses and communities involved in agriculture.

The trade finance component is particularly significant for export-oriented businesses, with BII’s trade guarantees expected to support transactions and facilitate access to regional markets.

CABS said opportunities presented by regional markets, including the Common Market for Eastern and Southern Africa (COMESA), could help agro-exporters expand their operations and generate foreign currency earnings.

Acting British Ambassador to Zimbabwe Jo Abbot said the partnership demonstrated the potential role of UK-backed investment in supporting Zimbabwe’s economic growth and financial sector.

“We are delighted to see British International Investment partnering with CABS for the first time,” Ms Abbot said.

“This new partnership highlights the growing role that UK-backed investment can play in supporting economic growth, strengthening Zimbabwe’s financial sector, and increasing access to finance for the businesses that underpin trade and agricultural development.”

The investment also reflects a broader effort by BII to use development finance to support private-sector growth and long-term economic development in frontier markets.

For Zimbabwean businesses, the immediate significance of the facility lies in the availability of longer-term foreign currency financing at a time when access to capital remains important for modernising productive capacity.

CABS said the facility would also direct resources towards clean energy and sustainable agriculture, adding an environmental dimension to the financing programme.

Mpofu said CABS would maintain high standards of transparency and governance in managing the funds.

“We commit to maintaining the highest levels of transparency and governance as we manage the funds,” he said.

The partnership therefore places CABS at the centre of efforts to channel offshore development finance into productive sectors, particularly agriculture and food manufacturing, with the ultimate objective of improving production capacity and strengthening Zimbabwe’s participation in regional and international markets.

For BII, the transaction provides an entry point into a new partnership with one of Zimbabwe’s established financial institutions, while for CABS, it expands the pool of offshore funding available to support businesses across the agricultural and export value chains.