Members’ area
News 4 mins Read 21 Nov 2024 Brussels

EDFI Management Company Supports Proparco’s Partnership with NMB Bank to Boost Zimbabwean SMEs and Women-led Businesses 

EDFI Management Company (EDFI MC) proudly supports Proparco’s renewed partnership with NMB Bank in Zimbabwe. This collaboration, under the EFSD+ MSME Plus guarantee programme, aims to empower SMEs, exporters, and women-led businesses with enhanced financial access. 

Proparco has signed a USD 15 million senior credit facility with NMB, dedicated to SME exporters in the agri-food sector. This facility qualifies for the 2X Challenge, a global initiative championing women’s economic participation in developing countries. Backed by the EU’s EFSD+ guarantee, the MSME Plus programme provides risk-sharing mechanisms that enable banks like NMB to extend their reach. The credit facility is backed by the European Union’s EFSD+ MSME Platform Plus guarantee programme, which is managed by EDFI MC. The MSME Platform Plus includes two windows of investment: a general window with up to 50% guarantee coverage, and a targeted agri/rural MSME component offering up to 70% risk coverage. 

This comprehensive intervention addresses multiple challenges faced by Zimbabwean banks in supporting the real economy. By combining liquidity support and risk-sharing mechanisms, the partnership enables NMB to reach a wider range of customers and expand its business operations holistically. 

Steven Gardon, Proparco’s Regional Director for Southern Africa, stated: “We are grateful for the support provided by EDFI Management Company through the EU’s EFSD+ MSME Plus Platform guarantee programme. This guarantee has been instrumental in enabling us to deepen our partnership with NMB Bank. By leveraging this support, we can significantly enhance our ability to finance SMEs, particularly in the agricultural sector and women-led businesses in Zimbabwe. This collaboration exemplifies our – Proparco’s and EDFI MC’s, shared commitment to fostering sustainable economic growth and financial inclusion in the region.” 

EDFI MC’s Role in managing the EFSD+ MSME Plus Platform 

EDFI MC, through its management of the EFSD+ MSME Plus Platform guarantee programme, plays a crucial role in facilitating this impactful partnership. The guarantee provided by EDFI MC enables Proparco and NMB to extend their reach and support underserved segments of the Zimbabwean economy. 

Rodrigo Madrazo, CEO of EDFI MC, stated: “We are proud to support this partnership between Proparco and NMB Bank through our guarantee programme. This collaboration marks the first deal under the MSME Platform Plus. It also aligns perfectly with our mission to promote sustainable private sector development and create opportunities for SMEs and women-led businesses in emerging markets.” 

By facilitating access to finance for SMEs and women-led businesses, this partnership aims to drive inclusive economic growth and reduce inequalities in Zimbabwe. 

For more information about EDFI MC and its guarantee programmes, please visit www.edfimc.eu

About Proparco 

Proparco, the private sector financing arm of the Agence Française de Développement (AFD) Group, has been advancing sustainable economic, social, and environmental development for over 45 years. It provides tailored funding and support to businesses and financial institutions across Africa, Asia, Latin America, and the Middle East. Proparco’s efforts are concentrated in key development sectors, including infrastructure (with a strong emphasis on renewable energy), agribusiness, financial services, healthcare, and education. 

Since 2015, Proparco has partnered with the European Commission, gaining access to additional resources that allow it to expand its service offerings for the private sector. This partnership helps foster sustainable economic growth, reduce poverty, and contribute to the achievement of the Sustainable Development Goals (SDGs). The funds delegated to Proparco enhance its capacity for additionality, enabling it to explore high-impact but riskier sectors and markets, while also boosting its non-financial contributions to the private sector, thus amplifying the overall impact of its financing. 

About EDFI MC 

EDFI MSME Platform and its successor, EDFI MSME Platform Plus, are joint guarantee programmes developed by the members of the EDFI Association and EDFI Management Company under EFSD+, the financing arm of the EU Global Gateway. They are designed to address financial constraints faced by micro, small and medium-sized enterprises (MSMEs) in Sub-Saharan Africa and the EU Neighbourhood by enhancing the capacity of EDFIs and their co-investors to provide loans to local financial intermediaries. 

The aim of the guarantee is to de-risk the  investments of European DFIs, allowing them and their co-investors to invest in: 

  • high-risk countries, 
  • least-developed countries, 
  • low-income countries, and 
  • countries in a fragile or vulnerable situation. 

This will boost the capacity of local financial intermediaries in these countries to lend to underserved segments of people, in particular women, young people, migrants and rural populations.