By MAIMBOLWA MULIKELELA –
INTERNTIONAL Finance Corporation (IFC), a member of the World Bank Group, has provided US$25 million loan facility to First National Bank Zambia (FNB) for onward lending.
This is meant to increase access to finance for small and medium-sized businesses and the agriculture sector in support of inclusive economic growth.
Half of Zambia’s 15.1 million population lives in rural areas, where formal employment is scarce and poverty is high.
FNB Zambia chief executive officer Johan Maree said the funds would enable the bank to lend out in US dollars to farmers because of favourable interest rates.
He said this during the signing of the $25 million loan facility with IFC in Lusaka yesterday.
“We are excited that this facility will further support our focus on the SMEs and agriculture sectors that are key in addressing the country’s challenges of poverty and unemployment.
“As FNB Zambia, we are committed to supporting our customers to achieve their aspirations and to playing a leading role in support of Zambia’s development agenda through provision of innovative products and services that support the growth of local businesses and help to create a better world,” Mr Maree said.
According to the 2013 Zambia Enterprise Survey, one of the main constraints on economic growth is the lack of finance for small-scale businesses, with 28 per cent of Zambian firms citing a lack of credit as their top operational constraint.
He said the loan would enhance FNB Zambia’s capacity to significantly increase its lending to small and medium-sized enterprises and export-oriented agribusinesses.
This is in support of the bank’s strategy to become the country’s leading bank for small- and medium-sized firms and the agribusiness sector.
IFC director in charge of Sub-Saharan Africa, Oumah Seydi said his bank was committed to supporting the growth of the Zambian economy.
“By supporting the small business sector as well as the agricultural sector, the loan aims to contribute to Zambia’s efforts to improve its resilience and diversify the economy. That is especially important in economically challenging times,” he said.
FNB Zambia is a wholly owned subsidiary of First Rand Group South Africa which started operating in 2009. It has 21 points-of-presence around the country, 770 staff and about 190,000 clients.