Zambia: FNB to Increase Agro Lending
First National Bank (FNB) Zambia plans to extend its agricultural lending to emerging and small-holder farmers in the country.
To this end, it has signed a memorandum of understanding (MoU) with Conservation Farming Unit (CFU) and Musika Development Initiatives (MDI) Zambia Limited. This should allow FNB to provide financing to farmers who are not bankable on a standalone basis.
Its strategy is to provide lease financing to farmers:
"The finance leasing scheme will allow us to finance tractors, matching implements such as rippers, trailers and planters, among others. The farmers will use the equipment for tillage and haulage services in the communities where they live which shall in turn, result in early planting results and optimal yields,"
FNB chief executive officer Sarel Van Zyl.
This initiative forms part of the suite of products the bank uses to finance the agricultural sector.
FNB already holds a significant market share of the sector financing thanks to its asset leasing products and electronic solutions such as the E-wallet.
MDI will support FNB through the provision of
partial credit guarantees during the initial pilot project, while the CFU will be in charge of the technological side.