AB Bank sets aside K300m for small businesses
By BUUMBA CHIMBULU MICRO, Small and Medium Enterprises (MSMEs) registered with the Zambia Development Agency (ZDA) are expected to benefit from the K300 million set aside for sector support by AB Bank Zambia.
This follows the recent signing of a Memorandum of Understanding (MoU) between ZDA and AB Bank aimed at providing SME financing.
AB Bank chief executive officer, Armando Sirolla, explained that under the MoU, the bank would provide business financing and working capital facilities to MSMEs registered at ZDA.
Mr. Sirolla said the bank would also recommend MSMEs that required business development support services to ZDA to improve their business acumen and enhance their capacity.
"At AB Bank, what we have done is that we are disbursing K25 million per month to SMEs, so if you multiply that by 12 months it will give you K300 million.
"The ZDA will recommend MSMEs that are registered at the agency to the bank to access business financing, work has already started in this regard," Mr Sirolla said.
He was speaking during the signing of an MoU between the two institutions in Lusaka on Monday afternoon.
Mr. Sirolla further said the bank had 15,000 clients of which at least 500 of them were potential key target for ZDA.
And ZDA acting director general, Cecilia Nyalugwe said they would also provide various business development support services, including incubation, acceleration and continuous mentorship to the MSMEs that were accessing business financing recommended by AB bank.
Ms. Nyalugwe said ZDAG was excited to enter into this partnership as it was in line with one of its major intervention under the National Business Linkages Programme which was identifying banking and financial institutions with products and services tailored to promote and grow MSMEs.
"Our mandate as ZDA is to promote and grow local business enterprises by fostering market access support and access to business financing, so we are excited to be entering into this partnership," Ms. Nyalugwe said.