Zambia: DBZ to receive $50m line of credit from AfDB
This funding will provide lending to the private sector.The African Development Bank (AfDB) will provide a $50 million (€43.7 million) loan to the Development Bank of Zambia (DBZ) for onward lending to the various sectors of the economy.
The line of credit will focus on supporting infrastructure development and the private sector.
AfDB resident representative Damoni Kitabire told the Times of Zambia that the bank would work with the government to identify the constraints faced by the private sector in the country.
In addition, the AfDB is planning to promote the value chain in the agricultural sector in a bid to diversify the Zambian economy.
In January, the China Development Bank said it would provide a $30 million line of credit for lending to the private sector, while the Industrial Development Corporation of South Africa would provide $20 million.
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 increasing 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.