AfDB grants $1.5 million to support small businesses in Zambia

Sep 18, 2014

The African Development Bank (AfDB) has approved a $1.5 million (€1.16 million) loan to support micro, small and medium-sized enterprises (MSMEs) in Zambia.

The African Development Bank (AfDB) has approved a $1.5 million (€1.16 million) loan to support micro, small and medium-sized
enterprises (MSMEs) in Zambia.


Freddie Kwesiga, National Representative of the AfDB, said the loan was granted under the SME program in Africa, the Zambia Daily Mail reports.

This initiative, which has received a total investment of $125 million, covers the whole continent. It provides financing to some 25 financial institutions so that they can increase the number of loans granted to SMEs.


The
investment comes just months after the Development Bank of Zambia (DBZ) announced plans to allocate K400 million (€47.3 million) to boost lending to
SMEs
.

Managing director Jacob Lushinga said the sum would target small businesses in key priority sectors such as manufacturing, construction, mining, tourism and agriculture.

In
Zambia, SMEs represent around 70 per cent of the economy, according to figures from the central Bank of Zambia.