Development Bank of Zambia invests €47 million to boost SME lending

Apr 11, 2014

The Development Bank of Zambia (DBZ) is to allocate K400 million (€47.3 million) to boost lending to small and medium-sized enterprises (SMEs).

The Development Bank of Zambia (DBZ) is to allocate K400 million (€47.3 million) to boost lending to small and medium-sized enterprises (SMEs).

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

Speaking during the Zambia Association of Chambers of Commerce and Industry (ZACCI), he added that the bank received a total of K104.6million in 2013 through a Eurobond, and allocated K58 million to SMEs.

In Zambia, SMEs represent around 70 per cent of the economy, according to figures from the central Bank of Zambia (BoZ), and are considered the lifeblood of the country's economic development.

Last August, the BoZ approved the creation of a dedicated SME bank, which is expected to be operational in 2014.ADNFCR-2976-ID-801711763-ADNFCR