BADEA and CBZ sign trade finance agreement

The Arab Bank for Economic Development in Africa (BADEA) and the Zimbabwean bank CBZ have signed a statement of intent to create a trade finance facility worth 50 million dollars. The agreement aims to help eligible businesses in Zimbabwe access credit and support commercial and productive activities.

Agreement signed during World Bank meetings

The signing occurred during the annual meetings of the World Bank Group and the International Monetary Fund (IMF) in Bangkok, Thailand. A statement released on October 17 said the financing is conditional on completing required procedures and formalities.

Support for Zimbabwe’s economic diversification

For BADEA, the initiative is expected to help diversify Zimbabwe’s economy, boost exports, and develop key productive sectors. Trade has become increasingly important in Zimbabwe, as shown by a 240.2 million dollar trade surplus recorded in December 2025, up from 91.1 million dollars the prior month.

Zimbabwe’s economic sectors and growth

According to the Zimbabwe National Statistics Institute (ZIMSTAT), manufacturing contributed 16.8% of the country’s GDP in 2025, more than mining and quarrying (15.9%) or agriculture (11.1%). This highlights the growing role of industry in Zimbabwe’s economy.

CBZ seeks to support local businesses

For CBZ, the partnership could provide additional resources to fund its clients’ commercial operations. The bank aims to help businesses conduct transactions and meet financing needs, especially given Zimbabwe’s limited access to external funding.

Zimbabwe’s financial challenges

The IMF noted in its October 2025 report that Zimbabwe continues to face limited access to official external financing, low foreign exchange reserves, and a financial system heavily reliant on the U.S. dollar.

BADEA’s existing investments in Zimbabwe

BADEA is already involved in various sectors in Zimbabwe, including infrastructure, agriculture, energy, water, and trade. The bank also supports social sectors like education, housing, and health. Its current project portfolio in the country totals 116.8 million dollars.