Stanbic Bank Zimbabwe parent company, Standard Bank Group has provided a US$21.6 million loan facility for the upgrading of Southern Africa’s busiest inland port of entry.
The loan facility was availed to a concession holding company Zimborders Mauritius (Zimborders) towards the rehabilitation and modernisation of Zimbabwe’s side of the Beitbridge Border Post as well as the development of associated infrastructure in and around the town of Beitbridge.
Work on the rehabilitation of the Border Post started in earnest early this year and is progressing steadily.
Standard Bank Group Regional Head South and Central Africa: Investment Banking, Chungu Kaunda, said the facility demonstrated the financial services institution’s quest to provide impactful financing solutions across the key sectors driving Zimbabwe’s economic recovery, including infrastructure sector.
This infrastructure investment is also in sync with the government’s National Development Strategy objective of efficient infrastructure delivery which will be key in the realisation of national priorities and overall socio-economic development.
“While raising finance remains a challenge in sub-Saharan Africa, this transaction speaks to Standard Bank’s ongoing commitment to use its on-the-ground presence and expert capabilities across Africa to finance the development of infrastructure projects throughout the continent,” said Kaunda.
“Standard Bank’s local presence and its strong relationships with key stakeholders in the region were crucial to ensuring the positive outcome.”
As part of the transaction, Stanbic Bank Zimbabwe is also local Account Bank for Zimborders, utilising its local capabilities to assist the client with its transactional requirements and also acting as liaison with government and regulatory agencies whose oversight and approvals were crucial for the bankability of the project.
Stanbic Bank Zimbabwe Executive Director: Wholesale Clients Betty Murambadoro said: “The Bank is not only providing debt funding to Zimborders. We are also utilising our channel and capabilities as local Account Bank for Zimborders in a way that provides comfort to both the borrower and syndicated lenders.”
Access to infrastructure remains critical to the future growth potential of sub-Saharan Africa, yet it remains extremely limited across large parts of the region. The Bank have played a cruicila role in helping to close this infrastructure deficit.
“Achieving this milestone is testament to Standard Bank’s strong capabilities and expertise in the Energy and Infrastructure space. We remain ready to support local and regional entities across various sectors to see their projects through to fruition, by offering a robust suite of Investment Banking products,” said Terence Mapfumo, Head of Investment Banking Zimbabwe – Harare