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ADB completes line of credit to Zanaco, Investrust

ADB completes line of credit to Zanaco, Investrust
By Mutale Kapekele
Sat 30 Oct. 2010, 04:00 CAT

THE African Development Bank has completed its US$ 13.5 million Line Of Credit (LOC) to Zanaco and Investrust banks which will be used to finance small and medium enterprises (SMEs) development.

Zanaco and Investrust banks have accessed US$ 10 million and US$ 3.5 million respectively for the five-year SME initiative that is expected to enhance the sector’s access to finance on more favorable terms.

During the launch of the SME initiative, ADB resident representative Dr Freddie Kwesiga said despite his bank investing US $1 billion since coming to

Zambia in 1971 and the current support of US $200 million, there was still a deficit in financing the private sector, especially SMEs.

He said the SME was an important sector to any economy as it employed many of the marginalised groups in society like women and youths.

Dr Kwesiga said his bank was committed to supporting Zambia’s development agenda by providing assistance in infrastructure development, regional integration and private sector development.

“The bank’s sectorial focus will include agriculture, energy, power and transport, hinged around national economic diversification programme,” Dr Kwesiga said. “Linked with the sectors I have mentioned, to the private sector we will focus on leveraging sector resources through supporting Private
Public Partnerships (PPPs), deepening financial intermediation in the financial sector to catalyse development of mortgage financing and support to SMEs through lines of credit as well as supporting reforms to provide reforms that provide wider competiveness and improved business environment.”

Dr Kwesiga said Zambia had a lot of opportunities to reduce poverty through PPP initiatives and partnerships with cooperating partners.

Labels: ADB, INVESTRUST BANK PLC, ZANACO

posted by MrK @ 4:12 PM