RBZ Hands Out US$10 Million to 135 Companies Through Targeted Finance Facility

The Reserve Bank of Zimbabwe (RBZ) has pumped ZiG300 million (around US$10 million) into the economy through a special funding facility aimed at boosting key industries. Since January, 135 private sector companies have benefited from the initiative, which offers affordable loans to support economic growth.

Agriculture and Manufacturing Get the Lion’s Share

According to RBZ data, the agriculture sector was the biggest winner, with 60 companies accessing funds from the Targeted Finance Facility (TFF). The manufacturing sector wasn’t far behind, with 53 companies benefiting. Meanwhile, 18 firms in the wholesale and retail space also got a slice of the funding, and the construction and energy sectors saw four companies each receive support.

RBZ Governor Dr John Mushayavanhu explained that agriculture and manufacturing were prioritised because of their crucial role in driving Zimbabwe’s economic growth.

“In line with the facility objectives, the manufacturing and agriculture sectors received the biggest share of the funding, given their significant contribution to domestic production. An analysis of historical growth trends of the Zimbabwe economy shows that strong recovery in agriculture and manufacturing production has had significant positive impacts on the economy,” Dr Mushayavanhu said.

Also read: ‘We no longer need the black market’: Why Zimbabwean Manufacturers Are Now Turning Away From Parallel Forex Dealers

What the Targeted Finance Facility (TFF) Is All About

The TFF, launched by the RBZ at the start of 2025, is designed to boost the economy without causing inflation. It does this by offering low-interest loans to productive industries, while keeping the country’s tight monetary policy intact.

Under the TFF, banks borrow money from the central bank at 20% interest and are allowed to on-lend to businesses at a maximum rate of 30%. Loans are short-term, with a maximum repayment period of 270 days. Borrowers can take out and repay loans in ZiG or foreign currency at the current exchange rate.

Dr Mushayavanhu expressed satisfaction with how the facility is working.

“Overall, the TFF has enabled the Reserve Bank to make available targeted liquidity to the productive sectors of the economy, while maintaining its current tight monetary policy stance, aimed at durably reducing inflation to low and sustainable levels,” he added.

Speaking virtually at the ZITF 2025 International Business Conference last week, Finance Minister Professor Mthuli Ncube assured businesses that government will continue to tighten the screws to make sure the TFF stays effective and truly benefits the economy.

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