Zimbabwe firms receive $400 million boost for African expansion

The African Export-Import Bank (Afreximbank) has allocated US$400 million to support Zimbabwean-based pan-African companies aiming to invest across the continent. This initiative is anticipated to bolster the region’s integrated industrialization efforts.

Denys Denya, Afreximbank’s executive vice president, announced during the SADC Industrialization Week (SIW) investment conference in the Zimbabwean capital, Harare, that the bank had already helped several major corporations expand into new markets across Africa. Notable examples include Aliko Dangote’s cement projects in Ghana and Tanzania, Econet Group’s continental expansion, and Arab Contractors’ ventures in Tanzania and East Africa.

“I am pleased to announce that we have earmarked US$400 million for Zimbabwean-based pan-African firms looking to invest in the continent,” Denya stated. “We acknowledge the fragmented production systems in the region, which is why we have launched our initiative to support the emergence, expansion, and export trading of companies to consolidate products for export markets.”

Denya emphasized that this support is essential for addressing significant gaps in trade and market information, particularly in key sectors like agriculture, by providing financing for critical value chain mechanisms.

“In this effort, we have disbursed US$3.5 billion to export trading companies operating in countries such as Tanzania, Malawi, Zambia, and Zimbabwe. This integration of agriculture into regional and global value chains is vital,” he said.

With the African Continental Free Trade Area (AfCFTA) opening up larger markets, the region will face increased competition from products across the continent. Zimbabwe, a signatory to AfCFTA, aims to eliminate tariffs on 90 percent of goods traded between member states over ten years. This initiative seeks to foster regional economic integration and boost intra-African trade by 53 percent by next year, with the potential to create up to 30 million jobs and lift 30 million people out of poverty.

Zimbabwe’s Minister of Industry and Commerce, Mangaliso Ndlovu, urged investment promotion agencies in SADC to leverage the SADC Industrialization Week (SIW) and Investment Conference to address the significant challenge of attracting high-quality investments into the region.