By Nawa Mutumweno – The African Development Bank (AfDB) has finalized a $13.5 million line of credit to Zanaco and Investrust Bank which will be tailored to finance small and medium enterprises (SMEs).
Zanaco and Investrust Bank have accesses $10 million and $3.5 million respectively for the five-year SME initiative that will enhance the sector’s access to financing on more favourable terms.
Despite the bank investing $1 billion since coming on the Zambian market in 1971 and the current support of $200 million, a deficit in financing the private sector, especially SMEs, still exists, disclosed AfDB resident representative Dr Freddie Kwesiga.
AfDB was committed to supporting Zambia’s development agenda by providing assistance in infrastructure development, regional integration and private sector development, he pointed out.
“The bank’s sectorial focus will include agriculture, energy, power and transport, hinged around national economic diversification programme and leverage sector resources through supporting private public partnerships (PPPs), deepening financial intermediation in the financial sector to catalyse development of mortgage financing and support to SMEs through lines of credit as well as supporting reforms that provide wider competitiveness and improved business environment,” he added.