African Export-Import Bank, Afreximbank, alongside the International Monetary Fund (IMF) has agreed to mobilise an impressive sum of $50 million in Zimbabwe for projects in energy infrastructure, logistics, agro-processing, among others.
This was contained in a statement made by the Zimbabwean government on Thursday, as per a report Energy Capital.
The deal was signed with Zimbabwe’s Mutapa Investment Fund, as both parties agreed to mobilize funds for projects across the eastern African country.
The CEO of the Mutapa Investment Fund, John Mangudya, and Afreximbank Vice President, Kanayo Awani, signed the agreement on Thursday, with the Afreximbank President and the Director of Project Preparation serving as witnesses, the report said.
According to the report, the initiative is closely aligned with Zimbabwe’s Vision 2030 strategy, which targets establishing the country as an upper-middle-income economy by the end of the decade.
By channeling funds into high-impact sectors, the facility aims to advance economic transformation and long-term growth in the country.
“Under the terms of the agreement, Afreximbank will extend project preparatory funding to support MIF’s portfolio of investee companies. This funding is designed to identify and develop a pipeline of bankable projects.
“The ultimate goal is to unlock capital for ventures across energy, agro-processing, industrial development, mineral extraction, and logistics—sectors deemed vital for national progress,” the report says.
Other deals Afreximbank
Moreover, this is not Zimbabwe’s first deal with Afreximbank, which serves as a strategic financier for the economically struggling nation.
Energy in Africa earlier reported that the bank recently financed a $250 million project for the well-known Kariba Dam solar initiative.
The project aims to address land use concerns while boosting energy output in a nation struggling with record power shortages caused by prolonged drought.
In November last year also, the bank mobilised $2 billion to enhance food security in the country.
Zimbabwe faces food inflation of nearly 400%. The country’s challenges stem from poor economic policies, drought, and energy shortages, all of which have hampered production.
Afreximbank’s projects have also extended to countries such as Chad, Malawi, and Egypt.
The initiative aims to address food insecurity in Africa, where nearly 20% of the population faces hunger, by reducing reliance on other regions for critical food commodities.
