By MAIMBOLWA MULIKELELA –

MADISON Finance Company Limited has signed a Memorandum of Understanding (MoU) with the Zambia Development Agency (ZDA) aimed at providing affordable financial solutions to the Micro, Small and Medium Enterprises (MSMEs).

The agency will facilitate disbursement of the funds from Madison Finance Company to local MSMEs.

ZDA acting director general Glyne Michelo said the agreement would enable the MSMEs to access affordable and appropriate business finance solutions.

Speaking during the signing of the MoU in Lusaka yesterday, Mr Michelo said the local MSMEs faces a number of challenges such as inadequate business development services,managerial entrepreneurship and technical skills and lack of market.

“The objective of the MoU is contribute sustainable growth and development in the Zambia’s SME sector and it has, therefore, came at a better time,” he said.

Mr Michelo said the agreement addresses one of the constraints of lack of affordable and appropriate financing faced by the SMEs sector.

“We view ourselves as the agency of progressive change and facilitate economic development. We shall, therefore, identify, initiate and implement progressive change aimed at stimulating growth,” he said.

Speaking at the same function, Madison Finance managing director Ken Simwaba said the company was driven by innovative and responsiveness to specific needs as evidenced by products and financial solutions that the company continues to introduce on the market.

Mr Simwaba said the company realises that collateral was a major impediment to access to finance by MSMEs and that, the firm had adopted flexible collateral options such as tripartite agreement and solidarity groups.

“We will soon introduce savings products,affordable housing finance and money transfer services,” Mr Simwaba said.