Stanbic Bank Zimbabwe and the European Investment Bank’s development arm, EIB Global, have partnered to launch a €20 million (ZWG 525.9 million) credit facility aimed at empowering small and medium-sized enterprises (SMEs), particularly those led by women, in a bid to spur economic growth and job creation.
Announced on Thursday, the initiative seeks to address systemic funding gaps that disproportionately hinder women entrepreneurs in Zimbabwe, where over 50% of SMEs are female-owned yet face persistent barriers to accessing capital.
The credit line, backed by the European Union’s African, Caribbean, and Pacific (ACP) Trust Fund, will provide longer-term loans with favorable terms to businesses owned by women, those employing significant female workforces, or enterprises offering services tailored to women. This aligns with the 2X Challenge, a global effort to channel investments toward gender-inclusive economic participation in emerging markets.
Bridging the Gender Finance Gap
Zimbabwe’s economy relies heavily on SMEs, which account for roughly 60% of employment. However, limited access to affordable credit stifles expansion, with women-led ventures often sidelined due to collateral requirements and biases in traditional lending. Globally, women-run businesses receive just 7% of private equity funding, a disparity this initiative aims to narrow.
“Supporting women entrepreneurs isn’t just about equality—it’s smart economics,” said EIB Vice-President Thomas Östros, overseeing diversity and Southern African operations. “When women thrive, communities prosper.” The facility dovetails with the EU’s Global Gateway strategy, which prioritizes sustainable development through infrastructure and private-sector investments.
Local Impact, Global Backing
Stanbic Bank CEO Solomon Nyanhongo emphasized the initiative’s alignment with the bank’s commitment to national growth. “Empowering SMEs and women-led businesses means uplifting families and communities,” he said. The loans will offer flexible repayment periods and lower interest rates, critical for sectors like agriculture and retail that dominate Zimbabwe’s SME landscape.
EU Ambassador to Zimbabwe, Jobst von Kirchmann, highlighted the partnership’s role in the bloc’s broader gender equality efforts under Team Europe. “This isn’t just finance—it’s a catalyst for inclusive growth,” he said, noting that the credit line complements existing programs supporting women’s education and healthcare access.
Challenges and Prospects
While the fund signals progress, observers caution that systemic issues like currency volatility and regulatory hurdles remain. Zimbabwe’s inflation rate, though down from 2023 peaks, still hovers around 30%, complicating financial planning for small businesses. Nonetheless, the initiative’s focus on longer-term loans could provide stability for firms aiming to scale operations or adopt new technologies.
The EIB’s backing through the ACP Trust Fund mitigates risk for Stanbic, enabling more aggressive lending. Similar programs in Kenya and Ghana have boosted female entrepreneurship rates by up to 15%, offering a blueprint for success.
As Zimbabwe grapples with unemployment exceeding 25%, the fund’s emphasis on job creation—particularly for women and youth—could prove pivotal. “Access to credit transforms potential into productivity,” said Tendai Moyo, founder of Harare-based agro-processing SME Uplift Women’s Collective. “This isn’t just money; it’s a lifeline.”
Background: The 2X Challenge, launched in 2018, has mobilized over $16 billion globally for gender-lens investments. In Southern Africa, EIB Global has committed €1.2 billion since 2020 to projects advancing renewable energy, digital access, and SME growth.
