CABS, formerly Central African Building Society, has received a historic €15 million credit facility from the European Investment Bank (EIB).
This is the first-ever European Investment Bank engagement with a Zimbabwean commercial bank and the first engagement in the country in EIB in 22 years.
CABS which has one of the largest banking networks in the country is a subsidiary of Old Mutual Zimbabwe Limited, Zimbabwe’s largest life assurance organization.
Credit facilities have been dwindling since the imposition of sanctions on Zimbabwe at the turn of the millennium.
The Zimbabwean government claims the sanctions took away their ability to service their local and foreign debts resulting in the country being blacklisted while some institutions stopped extending credit facilities in fear of sanctions from the Breton Woods institutions.
Zimbabwean financial institutions used to get most of the credit facilities from Breton Woods financial and other international institutions that have not been forthcoming since two decades ago.