• New Credit Facility: EIB Global,  Stanbic Bank have launched a €20 million ($21 million) credit line aimed at empowering  SMEs
• Strategic Re-engagement: This initiative signifies EIB's renewed engagement after a 22-year hiatus
• Broader Impact: The facility not only provides financial support but also integrates tailored advisory services

Harare- The European Investment Bank (EIB Global), in partnership with Stanbic Bank Zimbabwe, has unveiled a €20 million ($21 million) credit facility aimed at bolstering Zimbabwean small and medium enterprises (SMEs), with a pronounced focus on women-led businesses.

This initiative marks a significant step in EIB’s renewed engagement with Zimbabwe after a 22-year hiatus, reflecting broader efforts to drive inclusive economic recovery in a nation grappling with currency instability and structural barriers to growth.

Thomas Ostros, the EIB vice-president responsible for diversity, inclusion, and Southern Africa operations said that,  “ With over half of the SMEs in Zimbabwe owned by women, EIB Global’s 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.”

Since resuming operations in Zimbabwe, EIB Global has deployed over $50 million through targeted credit lines aimed at strengthening economic resilience.

 The facility’s design prioritising longer-term financing for SMEs led by women or those employing women aligns with global trends in gender-lens investing.

The EIB suspended direct sovereign lending to the Zimbabwean government in 2, following prolonged political tensions and arrears on existing loans.

While the EIB avoided direct engagements with Zimbabwean entities during this period, it funded regional infrastructure projects with spillover benefits for Zimbabwe, such as upgrades to the Beitbridge Border Post (a key trade corridor) in the 2010.

However, these were multilateral initiatives rather than country-specific loans.

This freeze extended to most formal financial institutions operating in Zimbabwe, as the EIB typically channels funding through government-backed intermediaries or regulated entities.

For over two decades, this hiatus prevented new Zimbabwe-specific financial agreements, marking a period of estrangement between the EIB and Harare.

The last pre-hiatus EIB project in Zimbabwe was a rural electrification program finalised in 2000, reflecting the 21-year gap in direct engagement. 

The EIB’s return to Zimbabwe marked a strategic shift under its Global Gateway Initiative, a framework enabling indirect support to private-sector entities without direct government involvement.

This allowed the bank to resume lending to Zimbabwean private financial institutions, bypassing sovereign risk concerns.

First Capital Bank (FCB) and CABS became the first beneficiaries of this re-engagement strategy. In 2021, the bank partnered with CABS, a local financial institution, to disburse a $18.15 million facility targeting agri-SMEs.

This initiative focused on improving access to irrigation equipment and climate-smart technologies, addressing critical gaps in a sector vulnerable to erratic rainfall and climate change.

A subsequent $13 million facility with First Capital Bank in 2022 shifted focus to manufacturing and export-oriented SMEs, aiming to alleviate foreign exchange shortages by incentivizing value-added production.

These facilities targeted SMEs in agriculture and manufacturing, sectors critical to economic resilience.

The $21 million partnership with Stanbic Bank in 2025 builds on this renewed approach, focusing explicitly on women-led businesses. 

The new Stanbic Bank partnership seeks to address these gaps by integrating tailored advisory services, a recognition of the need for holistic support beyond mere capital injection. 

EIB’s Zimbabwean interventions mirror its regional strategy in SADC, which emphasizes private sector resilience and gender inclusivity.

In Zambia, the bank allocated $30 million to renewable energy projects, particularly solar microgrids for rural electrification, while in Mozambique, a $50 million post-Cyclone Idai recovery fund prioritized SMEs in construction and logistics.

Malawi’s model, where 40% of EIB loans are earmarked for women-led agri-processing cooperatives, directly informs Zimbabwe’s latest facility.

As part of Standard Bank Group, Africa’s largest lender by assets, Stanbic brings deep market insights and an established SME portfolio, including 35% of Zimbabwe’s agro-dealers.

Its “Business Incubator” program, which mentors startups on financial management, complements EIB’s requirement for borrowers to adopt ESG-compliant practices.

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