USD 60 million credit facility signed for agriculture, SMEs and corporates
Wednesday 2nd December, 2015 - Zambia National Commercial Bank Plc (Zanaco) signed a USD 60 million credit facility with a consortium of European development finance institutions led by the Dutch Development Bank (FMO). Next to FMO financing is provided by the private sector financing arm of Agence Française de Développement (PROPARCO), and the German Investment and Development Company (DEG). The purpose of the facility is to finance activities in agriculture, Small and Medium Enterprises (SMEs) and other Corporates in Zambia.
The credit facility has been secured to boost the Bank’s foreign currency funding and is also a response to the demand from customers who have dollar borrowing requirements. It is also envisaged that the facility will help increase the customers’ productivity in the various sectors of the economy in which they are participating. Speaking during the signing ceremony, Zanaco Managing Director Bruce Dick said the facility was significant and large in the corporate history of Zanaco, which he assured the development finance institutions would be put to good use. Mr Dick said Zanaco‘s support to the Zambian economy was unwavering and this could be seen through the financing of the entire value chain of the agriculture sector i.e. from input suppliers to smallholder farmers to the agro processor. “The support also goes to SMEs which are at the heart of the economy and that is why we view ourselves as a development bank for Zambia because we put a lot of effort to long term initiatives. When times get tough, reputations can be made and we think when the economy is not performing as we would like it to, it is time to stand by our customers to make sure that we continue to support them. And customers value your relationship more when they remember that you stood by them in the good and also the tough times,” he said.
FMO Regional Manager for Southern Africa, Ewout van der Molen, said the three finance development institutions are committed and have a strong belief in the potential of Zanaco, specifically in its supportive role towards SME strengthening in Zambia. Mr Van Der Molen noted that the support to Zanaco was based on the Bank’s strategy for financial inclusion to all customer segments and support to all sectors of the economy. “We need to invest in diversification of the economy and we are happy that Zanaco is already putting that in practice,” he said. FMO, DEG and PROPARCO are development finance institutions that provide solutions for the private sector in emerging countries.
About FMO
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Its mission is to empower entrepreneurs to build a better world. It invests in sectors where it believes its contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, it invests in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl
