SME bank soon to be set up in Zambia

Apr 12, 2013

The Zambian National Small and Medium Entrepreneurship Fund (ZNSMEF) has announced it is in the process of setting up an equity bank dedicated to Small and Medium-sized Enterprises (SMEs).

The Zambian National Small and Medium Entrepreneurship Fund (ZNSMEF) has announced it is in the process of setting up an equity bank dedicated to Small and Medium-sized Enterprises (SMEs).

ZNSMEF's director Tresfold Chomba told the Times of Zambia that the commercial bank would offer unique services and products, adding that SMEs would be able to get credit facilities "without the headache" of providing guarantees, given that the ZNSMEF would act as a guarantor.

He said this would in return promote growth in the private informal sector and in turn create more jobs in the country.

Mr Chomba added that the ZNSMEF is still awaiting the Bank of Zambia's approval and that the equity bank would be established within six months from the approval date.

A survey conducted by the World Bank on Enterprise Development in Zambia identified poor access to finance as a major impediment to investment and growth in Zambia. Only 16 per cent of firms surveyed reported having a loan or line of credit from a financial institution.ADNFCR-2976-ID-801570426-ADNFCR