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The Citizens Economic Empowerment Commission and ABSA Bank have partnered to offer Small Medium Enterprises (SMEs) access to a loan facility of about K1 billion.
The Partnership between CEEC and ABSA aims at broadening access to finance by Zambian SMEs who currently lack the facility.
President Hakainde Hichilema launched the Public-Private collaboration for broadening access to finance at Mulungushi International Conference Centre in Lusaka on Thursday.
He acknowledged the role of all entrepreneurs including micro, small, medium, large and big business in growing the country’s economy.
Hichilema called for support to small businesses and irrigation farming, aiming to create jobs and enhance financial accessibility, with a target of growing the empowerment fund to K5 billion.
“Government introduced the Public-Private Partnership (PPP) policy to enhance infrastructure development and broaden access to finance in Zambia,” President Hichilema stated.
The President explained that the initiative aims to alleviate pressure on the national treasury by leveraging private sector investment for public projects, particularly in infrastructure and social services.
He stressed that the government seeks to create affordable financing options for citizens, targeting small businesses and encouraging job creation.
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“The goal is to grow the fund from K1 billion to K5 billion, facilitating access to contracts and promoting irrigation farming among communities,” President Hichilema emphasized.
He reaffirmed government’s commitment to economic recovery through collaboration, highlighting the New Dawn Government’s achievements such as debt restructuring, noting that Zambia is the fourth country to have managed to restructure its debt.
Hichilema stated that since the introduction of free education, over two million Zambian children had gone back to school.
CEEC Director-General Muwe Mungule said the key objectives of the collaboration were to provide affordable financial solutions to all districts and to achieve enterprise consolidation by merging homogenous enterprises.
ABSA Managing Director Mizinga Melu said that the Bank would provide financing of one billion Kwacha to support SMES.
“This will provide each cooperative with financing of up to K200,000,” Melu stated.
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