SME bank on cards
By JUDITH NAMUTOWE -
Zambian National Small and Medium Entrepreneurship Fund (ZNMEF) is in the process of setting up an equity bank to cater for the needs of Small and Medium Entrepreneurs (SME)s in the country.
ZNSMEF director general Tresfold Chomba said in an interview in Lusaka that the commercial bank once established would offer unique services of credit distinct from the current banking trends of collateral required by financial lending institutions before issuing SMEs with loans.
Mr Chomba said SMEs would be able to get credit facilities without any headache of having collateral provided they have a viable project or business undertaking.
He said this would in return promote growth in the private informal sector and in turn create more jobs in the country.
“We have developed a deliberate policy of supplementing Government’s efforts of creating stable jobs for the Zambian Populace.
That is why we plan to establish a commercial bank which will offer unique services of credit distinct from the current banking trends of collateral for security purposes,” Mr Chomba said.
Mr Chomba said ZNSMEF was currently in the process of registering the bank with the Bank of Zambia (BoZ) for approval.
He said that once BoZ approved , the equity bank would then be made known to the public and would be established within sixth months, from the date of approval.
Mr Chomba explained that his organisation would ease the SMEs burdens by providing guarantee on their behalf as long as they have the potential to pay back the loans.
ZNSMEF was created to bridge the gap that existed between the entrepreneurs and the financial institutions in Zambia.