Maravi

StanChart increases lending to agriculture sector

StanChart increases lending to agriculture sector
Written by Chiwoyu Sinyangwe
Saturday, April 11, 2009 5:41:00 AM

STANDARD Chartered Bank is repositioning its operations in Zambia by increasing lending to the agriculture sector and industries that enhance diversification of the local economy from too much reliance on copper.

And Standard Chartered Bank has said the recent decision by Bank of Zambia (BoZ) to ban non-residents from borrowing the kwacha for less than one year to help stem the currency’s losses will only be temporary.

Regional head of global markets for Africa Fred Lee told reporters yesterday that the bank's agribusiness experts from Standard Chartered Bank South Africa, together with officials from the Zambian branch, were working out modalities to make finance available to the local agriculture market as well as the manufacturing sector, especially companies to take part in the Multi Facility Economic Zones (MFEZ).

Lee said the funding portfolio for Zambia would be included in the recent $1.25 billion funding partnership Standard Chartered Bank struck with the International Finance Corporation (IFC), World Bank Group’s financing arm.

He, however, stressed that Standard Chartered Bank Zambia Plc was already an active financier to the local agriculture sector, adding that this move would only enhance that position.

“With the recent collapse in copper prices, there is need for Zambia to focus on diversification and develop sectors,” Lee said. “We as a bank through our agri-specialist in Johannesburg are focusing on agriculture finance and risk management solutions to support the Zambian economy move away from heavy reliance on copper. And with the opening of the free zones (MFEZ), we are also working with the companies there to provide finance and help them with challenges of managing risk.”

And Lee said Standard Chartered Bank supported the recent measures by the Central Bank to halt the continued free-falling kwacha by ridding the market of speculative practices.

He, however, said Standard Chartered Bank hoped the measures would only be permitted in the short-term.

“A number of African governments are putting in regulatory action in their markets and our view about this [BoZ’s decision to ban non-residents from borrowing the kwacha for less than one year] is that it is very good and a sensible decision to halt speculation in the market,” said Lee. “But we hope this will be a temporal measure so that the market can be allowed to operate on its own.”

Labels: AGRICULTURE, STANCHART

posted by MrK @ 4:42 AM