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Indo Zambia Bank (IZB) has disbursed about K650,000 to 276 small businesses, as it signs a partnership with marketeers’ group.
The bank also disbursed about K230.65 million to 447 entrepreneurs in 2022 as part of its commitment to supporting the growth of the small businesses.
The funds were disbursed to Small and Medium Entrepreneurs (SMEs) in sectors such as manufacturing, agriculture, trading, hospitality and transportation.
Last year, IZB managing director Kowdichar Shashidhar, said the bank had provided loans to 447 entrepreneurs amounting to K230.65 million.
As part of the agreement signed between IZB and Zambia National Marketeers Association (ZANAMACA) in Lusaka on Wednesday, the bank had financed a total of 276 marketers across the country.
The Memorandum of Understanding (MoU) will provide an extension to the Micro,Small and Medium Entrepreneurs (MSMEs) loan facilities to
ZANAMACA.
IZB managing director Kowdichar Shashidhar (L) present cheque amounting to K650,000 to ZANAMACA president Mupila Kameya (R) in Lusaka on Wednesday
Shashidhar explained that K650,000 disbursed was under the first tranche of loan facilities the bank was making to the marketeers.
“Our the partnership with ZANAMACA which culminates into the signing an MoU today and the disbursement of the first tranche of loan facilities amounting to K650,000 to 276 beneficiaries is an initiative which enables the bank to reach the grassroot level of society,” he said.
Shashidhar said this was aimed at supplementing government efforts of improving the welfare and well-being of the people while unlocking
various economic opportunities to deliver inclusive growth.
He was optimistic that the partnership with ZANAMACA would yield vital economic employment interventions that positively impact job and wealth creation.
Shashidhar said it was important for the Association to fulfil all their obligations under the MoU and ensure that the members are
educated on the importance of being disciplined borrowers.
He indicated that their good repayment track record would facilitate them accessing higher quantum of funds, which would in turn result in
the expansion of their businesses.
“Supporting the country’s economic activities and government initiatives is the paramount focus of our business strategy and then outcome of the effort saw the bank inject K1.2 billion directly into the economy last year by way of extension of financing to vital sectors of the economy.
“The bank’s total credit portfolio has grown to the level of K4.3 billion as at December 31,2022,” he said.
Speaking at the same event, Minister of Small and Medium Enterprisesn(SME) Development Elias Mubanga said the MoU would promote the
sub-sector in Zambia and contribute to the economic stability of the nation.
Mubanga said MSMEs are the majority of businesses countrywide and would contribute to the country’s socio-economic development.
“I wish to commend the bank for creating products and services such as the Indo MSMEs loan that provides support and promotes business growth for startups and MSMEs,” he said.
Mubanga urged MSMEs to take advantage of the initiative to enhance then economic development of the country.
He said ZANAMACA should empower themselves through the facilities offered under the MoU and the beneficiaries must be disciplined and
pay back the loan to access more capital in future.
ZANAMACA president Mupila Kameya said the initiative was life changing for the marketeers.
Kameya said access to finance had been a challenge to the SMEs for over five decades which affected growth of the country’s economy as the majority workforce of 80 percent are coming from the informal sector.
“The informal economy can change if it receives financial muscle such as the one being given to us by Indo Zambia Bank. We therefore urge
other financial institutions to emulate Indo Zambia Bank and extend their hand to the informal economy,” he said.
Kameya called on the Government to look at market infrastructure development which was in a dilapidated state resulting in the increasing
number of street vendors .
This would be the best solution to address inadequate trading space in markets and means to mitigate street vending.
And ZANAMACA New Soweto Market branch Chairperson Norah Koyi commended Indo Zambia and government for empowering marketeers in the country.
Koyi said ZANAMACA would continue to support the government in ensuring that marketeers and those in the informal sector are supported financially.
She appealed to IZB to extend loans facilities countrywide.
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