Zambia export development fund secures $25 million to boost non-traditional exports

The Zambia Export Development Fund (ZEDF) has successfully secured US$25 million in third-party funding from development finance institutions, investors and other supporters to bolster local firms.

ZEDF claims to be a leading financier of Non-Traditional Exports (NTE) for Zambia’s Small and Medium Enterprises (SMEs) and other firms.

It reported that new funding would enable ZEDF to provide affordable and appropriate financing to non-traditional exporters, significantly contributing to the growth of NTEs and the creation of jobs.

In a statement issued on Friday, ZEDF Board Chairperson, Biemba Maliti, expressed optimism about the impact of the increased funding.

“This funding support, which raises the fund base from US$4 million to US$29 million, would enable ZEDF to expand its financing base, increase the loan size and tenor, launch new financing capabilities and provide its customers with a broadened range of financing products,” Maliti said.

He added that the primary goal was to provide affordable finance for SMEs, firms, women and youth, who often face significant challenges in accessing capital, which in turn hampers business growth and expansion.

“This is intended to provide affordable finance for SMEs, firms, women, and youth, which is a challenge for most, consequently hampering business growth and expansion,” Maliti added.

He recalled that before this credit line, the Fund depended on seed capital from the European Union, with its operating costs partly covered by the government through the Zambia Development Agency (ZDA).

Looking ahead, Maliti noted that ZEDF would continue to strive for the growth and development of NTEs in Zambia, while drawing lessons from past experiences.

“The Fund takes cognisance of challenges exporters face such as disruptions in supply chains, inflation, rising operational costs, the global Covid-19 pandemic amidst other unpredictable challenges,” he said.

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