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Home » POSB, Afreximbank tie-up credit line for exporters

POSB, Afreximbank tie-up credit line for exporters

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POSB says it is working on a line of credit for exporters with the African Export–Import Bank (Afreximbank) that could be worth up to US$15 million.
The bank’s divisional director for corporate and investment banking, Farai Chirikure, said POSB was already working with potential beneficiaries of the facility.
“We are working with Afreximbank. They have given us a list of documents and we are working with customers… those that are already exporting and those that have potential to export.

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“We have a template that has been provided by Afreximbank, which our customers are currently populating and once we are satisfied with the order book we will go to Afreximbank.
“We are not sure how much it will go up to. Perhaps US$5 million or US$10 million or even US$15 million,” Chirikure told The Financial Gazette this week.
He said POSB was already extending its own funds to exporters.
“We also have our own funds that we extend to our customers, reasonably priced. We negotiate, we understand their business and we give them funds. We do have rates that I can describe as subsidised compared to rates for other sectors.
“So, we are quite alive to the requirements in the export sector, especially in terms of funding because we are going into a very competitive market, the global market where some are accessing cheaper funds and there is competition from many producers. So we want to make sure our customers access funs at very reasonable prices,” Chirikure said.
Zimbabwe has found lines of credit hard to come by in recent years due to sanctions on the country and an already existing debt burden.
POSB believes increased economic activity from different sectors can provide a catalyst for increased lending.
“We do have challenges. Lines of credit are no longer easily available but we have got some international banks that have come through.
“We hope that those that are sitting on the fence, based on the traction in the country…we are doing a lot of projects in lithium, steel horticulture, which I am sure is going to loosen up those that are sitting on the fence to come and support the country,” Chirikure said.
Chirikure was speaking after POSB hosted an exports seminar with trade development and promotion body ZimTrade.
“As POSB, we have decided to put all stakeholders together to share experiences and also get to understand the challenges and the opportunities that are in the export sector.
“We need to grow our exports. We have been doing so in the past few years and we want to ride on the momentum that has been gained so far. As a bank, we have been playing our part but we feel we will achieve more if come together with all stakeholders,” Chirikure said.
“Banks including POSB are trying to support; accessing lines of credit that are longer dated to support capital expenditure projects and also reasonably priced working capital finance to make sure we support the growth in exports.
“The reserve bank has also come up with a collateral registry which can assist SMEs to access funds and ECGC (Export Credit Guarantee Corporation), a brainchild of the Central Bank has also supported SMEs to access funding through security that is offered in the form of insurance.”
newsdesk@fingaz.co.zw

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