Stanbic, NRFA, RDA sign funding MoU
By HELEN ZULU -
STANBIC Bank Zambia has signed a memorandum of understanding (MoU) with the National Road Fund Agency (NRFA) and Road Development Agency (RDA) to provide local small and medium enterprises (SMEs) with capacity to undertake infrastructure development projects.
Stanbic Bank Zambia Chief Executive, Dennis Kennedy said under the MoU, local contractors would be able to access funds, acquire equipment and benefit from technical assistance in order to fulfill their contracts.
Mr Kennedy said Stanbic Bank, in partnership with the RDA and NRFA, would work towards the successful implementation of Construction Finance Initiative (CFI) by providing funding and arranging for supply of equipment through Vehicle and Asset Finance (VAF), thereby building the capacity of local contractors.
He said accessing contracts in Zambia’s infrastructure development would remain out of reach for local SMEs until they built their capacity to deliver on projects.
Mr Kennedy said local contractors should strive to build capacity and benefit from infrastructure development projects.
He said local SMEs could access up to 20 per cent of infrastructure development projects under the Link Zambia 8000 initiative which had a capital outlay of US$5.3 billion over the next five years.
RDA chairperson Willie Nsanda urged commercial banks to put up lending rates that would make SMEs contractors compete fairly in the sector.