ZANACO has secured a five-year US$60 million loan that will enable the bank to meet demand from customers who have dollar borrowing requirements.
Recently, Zambia experienced inadequate inflow of United States dollars, pushing the Kwacha to depreciate rapidly.
The credit facility from three European development finance institutions is anticipated to boost the bank’s foreign currency funding, which is scarce at the moment due to the economic challenges facing the country.
During the signing ceremony of the credit facility with development banks from Netherlands (FMO), Germany (DEG) and France (PROPARCA), on Wednesday night, Zanaco managing director Bruce Dick said the money will also be used to lend to customers in the agriculture, small and medium enterprises sectors and other corporate.
“The facility is expected to help boost our customers’ productivity in the various sectors of the economy in which they are participating,” he said.
Mr Bruce said Zanaco is the only Zambian bank that supports the agriculture sector through the entire value chain from small-holder farmer to the agro- processor.
“This unique position could not have been possible without the support of our partners which reaffirms the importance we attach to working and partnering with organisations who share our passion of offering a service,” he said.
Speaking on behalf of the three development banks, FMO regional manager Ewout van der Molen said there is need to show commitment to Africa, which has enormous potential.
“We strongly believe that Zambia, and through Zanaco, can offer us opportunities to explore our full potential. Zambia is stable and has been conducting peaceful transition of power and people are friendly. We believe this is the right time to put money into Zanaco so that the bank can play a significant role in the economic diversification of the country,” Mr Molen said.