First Capital Bank Limited in partnership with the European Investment Bank and the European Union have today secured a developmental line of credit to the tune of EUR 12,5 Million (USD13.7 million). The funding is set to develop eligible investment projects undertaken by Small to Medium Enterprises (SMEs) and MidCap companies under First Capital Bank Limited locally.
“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”.Patrick Devenish, First Capital Bank (Zimbabwe) Limited’s Chairman
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.
The key objective of this 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. Much growth and positive output is expected to emanate from this transaction as a robust framework ensures responsible behaviour across the board.
“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 targeted financing to First Capital Bank Limited 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.”Jim Hodges, Head of Regional Representation Southern Africa, and Indian Ocean of the European Investment Bank.
First Capital Bank Limited has set firm foundations within its chosen markets and continues to seek growth through mutually beneficial partnerships and leveraging its competencies. Speaking on the credit facility, Chief Finance Officer, 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 EIB private sector facility with First Capital Bank Limited 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 seeing how this facility supports the private sector in the challenging economic environment.”Ambassador Timo Olkkonen, Head of the European Union Delegation to Zimbabwe.