Four Zimbabwean organisations will receive $188 million from African Export-Import Bank to import prepaid meters to improve the supply of electricity and revenue generation in the Zimbabwe power sector.

“African Export-Import Bank (Afreximbank) has signed financing agreements with four Zimbabwean entities for a total of $188,600,000,” Afreximbank in a statement said.

The bank entered into the agreement with the Zimbabwean entities at the second Intra-African Trade Fair (IATF2021), currently taking place in Durban.

Afreximbank announced that the fund would help the Zimbabwean organisations, including Electricity Transmission & Distribution Company (ZETDC), Central African Building Society, CBZ and ZB Bank, to improve electricity supply and revenue generated from electricity supply through the introduction of smart and prepaid meters.

Explaining how the fund will be distributed, Afreximbank disclosed that the ZETDC would get a $110.4 million syndicated term loan facility to improve the DisCo’s revenue collection through smart and prepaid metering projects.

The bank further revealed that it provided the Central African Building Society with a $40 million facility to support its participation in a syndicated facility aimed at improving the supply of electricity in Zimbabwe through the payment of legacy debt and the importation of prepaid meters.

The third transaction, which is a $28.2 million dual-tranche facility, will be given to CBZ Bank to provide much-needed offshore foreign currency in Zimbabwe.

The bank explained that the transaction would also help finance the import of raw materials for key industries, thereby creating jobs and, in some cases, facilitating export diversification.

Also, Afreximbank signed another $10 million term sheet with ZB Bank to enable its participation as one of the syndicated lenders in a facility for the energy sector in Zimbabwe by providing adequate financing for power generation and transmission infrastructure.