The development finance arm of the European Investment Bank (EIB), EIB Global, has partnered with Stanbic Bank to introduce a €20 million (approximately ZWG 525.9 million) credit facility.
This initiative aims to provide long-term financing on favorable terms to small and medium-sized enterprises (SMEs) in Zimbabwe, with a strong focus on businesses owned or led by women, as well as those that significantly employ or serve women.
Africa has one of the highest rates of female entrepreneurship globally, and in Zimbabwe, women lead more than half of all SMEs.
Despite their significant contributions, many women-led businesses face barriers to growth, particularly limited access to financing. Studies show that women entrepreneurs worldwide struggle to secure the funding they need.
To address this challenge, the EIB-Stanbic credit facility is designed to close the financing gap and provide women entrepreneurs with the necessary financial support to expand their businesses, ultimately promoting economic empowerment in Zimbabwe.
This initiative aligns with the European Union’s Global Gateway strategy, which aims to bridge investment gaps and drive sustainable development. Additionally, it contributes to the 2X Challenge, a global initiative that mobilizes investments to enhance women’s economic participation in emerging markets.
By improving access to funding, leadership opportunities, and quality employment for women, this collaboration seeks to foster a more inclusive economy.
Speaking on the initiative, Vice-President of the EIB, Thomas Östros, emphasized the significance of supporting women-led businesses in Zimbabwe:
“With over half of Zimbabwe’s SMEs run by women, EIB Global’s support will make a tangible impact on economic growth, employment, and prosperity. Investing in women-led businesses fosters sustainable and inclusive development, strengthening communities.”
Stanbic Bank Chief Executive, Solomon Nyanhongo, also reinforced the bank’s dedication to Zimbabwe’s economic growth:
“Zimbabwe is our home, and we are committed to driving her growth. Supporting women-led SMEs and businesses that employ a significant number of women promotes economic inclusion and national progress. Empowering women entrepreneurs not only benefits businesses but also uplifts families, communities, and the entire nation. Through this partnership, we aim to provide essential medium-term funding to unlock opportunities for SMEs and female entrepreneurs across Zimbabwe.”
Speaking also European Union Ambassador to Zimbabwe, Jobst von Kirchmann, highlighted the broader impact of the initiative:
“Investing in women means investing in Zimbabwe’s future. Through the Team Europe Initiative on Gender Equality and Women’s Empowerment, the EU and its member states are working to create meaningful change for Zimbabwean women. This credit facility complements our broader efforts under the Global Gateway Strategy, fostering inclusive economic growth and financial inclusion. The partnership between the EU, EIB Global, and Stanbic reflects our shared commitment to empowering women entrepreneurs and strengthening Zimbabwe’s private sector.” The EIB loan is backed by the European Commission and EU member states through the African, Caribbean, and Pacific Trust Fund (ACP Trust Fund), reinforcing the commitment to sustainable economic development and women’s empowerment in Zimbabwe.
