We want to add value to the economy by providing funding to various business ventures – Development Bank of Zambia
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By ZamChro Correspondent
The Development Bank of Zambia (DBZ) managing director, Abraham Mwenda, has revealed that negotiations have reached an advanced stage and the deal would be finalised soon in which the bank is negotiating for a US$5 million credit line with the Industrial Development Corporation of South Africa that will enable the bank provide funding to Zambian firms.
Dr Mwenda stated that the US$ 5 million credit line would target mainly the Zambian firms which were in the business of exporting agriculture and manufactured products.
Speaking in Lusaka, he said lack of finance was undermining the bank’s effort of providing funding to various firms. But the bank was commited to ensure that firms wishing to access funding were funded.
Dr Mwenda said the bank had in the recent years signed various credit lines, which have enabled it to increase its loan providing funding in various sectors of the economy.
“DBZ wants to add value to the economy by providing funding to various business ventures,” he said.
He bemoaned the low capitalisation and institutional capacity of micro-finance institutions in Zambia saying this undermined the availability of finance.
Dr Mwenda noted that the available credit was not affordable. Most financial institutions were not willing to provide long term finance.
“The country is also characterised by unequal access to economic opportunities, for instance some SMEs are unable to access funding,” he said.
There was need for more players in the financial sector to come on board to transform the sector and further create competition.
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