French Economic Diplomacy Strengthens Zimbabwean Agriculture and Food Security
In a significant boost to Zimbabwe’s agricultural sector and food security, France has successfully signed multiple deals with two Zimbabwean banks, showcasing its commitment to economic diplomacy in the region. Proparco, the private sector financing arm of AFD – Agence Française de Dévelopement, has recently signed a €5 million EURIZ facility with Stanbic Bank Zimbabwe.
This facility is designed to support long-term financing for local farmers, enhancing the sustainability and growth of Zimbabwe’s agricultural industry. This initiative is part of the broader Food & Agriculture Resilience Mission (FARM), launched in 2022 by France in collaboration with the European Union, the G7, and the African Union. The FARM initiative aims to strengthen food security in the world’s most vulnerable countries.
The French Ambassador to Zimbabwe Paul Bertrand Barets attended the signing ceremony. In addition to the deal with Stanbic Bank, Proparco has also sealed three key facilities with NMB Bank Zimbabwe, cementing their partnership under the auspices of Jobst von Kirschmann, ambassador for the EU, and other key stakeholders. The package includes:
- $15M credit facility
- $5M EURIZ portfolio guarantee
- $5M Trade Finance guarantee
These facilities are targeted at SMEs, the agriculture sector, women entrepreneurs, and local importing and exporting businesses, driving impactful growth in Zimbabwe.
The collaboration between Proparco and Zimbabwean banks marks another milestone in France’s ongoing efforts to support Zimbabwe’s economic development. By focusing on agriculture, a vital sector for the country’s economy, these investments not only promote food security but also contribute to the overall resilience and prosperity of local communities.
France’s strategic investments continue to play a pivotal role in fostering sustainable development and economic stability in Zimbabwe. The successful partnerships with Stanbic Bank and NMB Bank are a testament to the positive impact of international cooperation in addressing global challenges and supporting local solutions.
