The European Investment Bank (EIB Global) and Stanbic Bank have announced the launch of a substantial €20 million (approximately ZWG 525.9 million) credit line aimed at providing long-term loans under favorable conditions to small and medium-sized enterprises (SMEs) in Zimbabwe. This initiative specifically targets SMEs owned or operated by women, as well as those that employ a significant number of women or offer services tailored to women’s needs.
The African continent is notable for having one of the highest proportions of women entrepreneurs globally. In Zimbabwe, more than half of the SMEs are led by women. However, many of these businesses face significant challenges, particularly in accessing credit, which is often cited as a major barrier to growth. Research indicates that women-run businesses worldwide are less likely to secure the financing they require to thrive. In response to this pressing issue, the EIB-Stanbic credit facility aims to bridge the financing gap by providing financial tools specifically designed to meet the needs of women entrepreneurs, thereby promoting women’s economic empowerment in Zimbabwe.
This initiative aligns with the European Union’s Global Gateway strategy, which seeks to address the global investment gap and foster sustainable development. The EIB-Stanbic facility also contributes to the 2X Challenge, an initiative focused on mobilizing investments that enhance women’s participation in the economy of emerging markets. By improving access to finance, leadership opportunities, and quality employment for women, this partnership aims to create a more inclusive economic landscape.
Thomas Östros, Vice-President of the EIB responsible for diversity and inclusion, as well as operations in Southern Africa, emphasized the significance of this support, stating;
With over half of the SMEs in Zimbabwe owned by women, EIB Global support for these businesses will have a real impact on economic growth, jobs, and prosperity. Backing women in business contributes to more sustainable and inclusive growth, strengthening communities.
Solomon Nyanhongo, Chief Executive of Stanbic Bank, echoed this sentiment, highlighting the initiative’s alignment with the bank’s commitment to Zimbabwe’s growth;
This initiative aligns with our core belief that Zimbabwe is our home, and we drive her growth. By supporting SMEs and enterprises owned or run by women and employing significant numbers of women, we are fostering economic inclusion and national development. Empowering SMEs and women-run businesses translates to empowering families, communities, and ultimately, the nation. Through this partnership, we are committed to driving meaningful change and unlocking opportunities for women entrepreneurs and SMEs across Zimbabwe through the provision of much-needed medium-term funding.
Jobst von Kirchmann, the Ambassador of the European Union to Zimbabwe, added;
Investing in women is investing in Zimbabwe’s future. Through the Team Europe Initiative on Gender Equality and Women’s Empowerment, the EU and EU Member States are collaborating to create a transformative impact for Zimbabwean women. This dedicated credit line complements Team Europe’s efforts on the ground in implementing the Global Gateway Strategy – we are not only unlocking opportunities for women entrepreneurs but also driving inclusive economic growth. This partnership between the EU, EIB Global, and Stanbic demonstrates our commitment to women’s economic empowerment and financial inclusion, creating jobs, and strengthening Zimbabwe’s private sector.
The EIB loan is supported by the European Commission and European Union member states through the African, Caribbean and Pacific Trust Fund (ACP Trust Fund), further solidifying the commitment to fostering economic development and empowerment in Zimbabwe.
