By MAIMBOLWA MULIKELELA –
THE European Investment Bank (EIB) has provided K33.75 million to Madison Finance Company Limited (Mfinance) for the growth of the micro and small business enterprises across the country.
This is a credit line facility which will be disbursed over a period of up to eight years and made available from the Southern Africa Microfinance facility.
EIB head of regional representative in charge of the Southern Africa and Indian Ocean Carmelo Cocuzza said the facility specifically targeted financial intermediaries like Madison Finance that focused on
micro and small enterprises in both the rural and urban areas that encouraged job creation and economic growth.
During the signing of the loan agreement between Mfinance and EIB in Lusaka yesterday, Mr Cocuzza said under the agreement, the Bank would provide technical assistance which focused on enhancing the capacity of the institution and its beneficiaries.
“We will support M-Finance in improving its own financial performance including fulfilling its capital adequacy requirement, help market the line of credit amongst the business community across Zambia, run financial literacy classes and business plan competitions,” Mr Cocuzza said.
He said the funds would help lower the barriers to accessing funding and offer suitable financial products that could allow households and small medium businesses to maximize the leverage of their savings for increased productivity.
Mfinance chairman Alfred Lungu said the K33.75 million equivalent to 4.5million Euros would support the growth of the micro, small and medium entrepreneurs in the country.