Zimbabwe - Line of Credit to Central Africa Building Society (CABS)

This is a USD 25 million Trade Finance Line of Credit (TFLoC) facility to support the trade finance activities of Central African Building Society (CABS) in Zimbabwe. It will provide liquidity support for SMEs, and women-owned businesses to facilitate their import and export trade finance requirements. This will complement the recently approved TG facility to ensure support along the value chains of SMEs and local corporate businesses in Zimbabwe. It will also foster financial sector development and generate more tax revenue through import duties and higher corporate profits. Including roll-overs, the facility would finance approximately USD 175 million of trade in the 3.5-year period. With regards to intra-African trade, 52% of their total outward trade payments are made to South Africa and 9.41% to the rest of Africa.