Zambia: DBZ to lend more than $50m to the private sector in 2016
It will receive two lines of credit from foreign lenders.The Development Bank of Zambia (DBZ) has announced it will receive in 2016 two lines of credit worth $50 million (€46 million) for lending to the private sector.
China Development Bank will provide a $30 million line of credit while the Industrial Development Corporation of South Africa will provide $20 million.
DBZ will also receive a short-term lending facility of K50 million (€4.2 million) from the National Pensions Fund Authority (NAPSA) to provide loans to the various sectors of the economy.
Managing director Jacob Lushinga told the Times of Zambia that he expects that approvals and disbursements would improve "drastically" in 2016.
The DBZ was established in 1972 as a joint venture between the government, financial Institutions and the private sector.
Its objective is to tackle poor and costly access to capital for investment by providing short, medium and long term financing and technical assistance to the private sector in Zambia.
It contributed to increase Zambia's
access to finance, which has significantly improved in the past few years. Figures from the World Bank show that the proportion of adults with financial access, both formal and informal, increased from 37.3 per cent in 2009 to 59.3 per cent in 2015.