Monday, December 30, 2013

Zanaco to continue lending to agriculture, SME entrepreneurs
By Chiwoyu Sinyangwe
Mon 04 Nov. 2013, 14:00 CAT

ZANACO says it will continue to focus on lending to agriculture and small and medium entrepreneurs. As at end of August, its agricultural loan book represented over 25 per cent of Zanaco's total loan portfolio.

"We are proud that our goal and objective to be the biggest agricultural financier by value and to have the largest number of clients in Zambia by 2015 will be kept alive with the boost the facility will make on our loan book," said Zanaco managing director Martyn Schouten.

Last week, Zanaco signed a long term senior debt agreement with the Deutsche Investitions und Entwicklungsgesellschaft DEG.

Zanaco is expected to receive US$15 million as first payment of US$25 million while the second part of the long term senior debt of US$10 million is scheduled to be disbursed by October next year.

"We are also glad that we will now be able to adequately provide working capital and capital expenditure requirements for our customers and corporate customers," Schouten said. "In this regard, we are grateful to DEG for making it possible for us to make long term lending which is very important for economic growth."

Schouten said Zanaco supports the largest Zambian food and agriculture corporations and commercial farmers whose financing needs were complex.

"We also support more than 10,500 smallholder farmers," said Schouten. "With the largest number of SMEs in the market, Zanaco remain steadfast to ensure the 13,000 SMEs we serve continue to be active players in the growth of our economy. A substantial portion of the DEG facility will be targeted at SMEs."

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