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An agreement meant to boost the participation of local transporters in the economy has been signed between Indo Zambia Bank (IZB) and Massbreed Investments.
And IZB credit portfolio has increased to over K4.3 billion to support the country’s economic activities.
Under the Memorandum of Understanding (MoU), IZB would provide lending facilities to Massbreed’s clients, mostly the Micro, Small and Medium Enterprises (MSMEs) in the transport sector.
This is meant to increase the participation of local haulage businesses in the Zambian economy.
IZB Managing Director Kowdichar Shashidhar said this at the signing ceremony of the MoU for the extension of auto finance loans to customers of Massbreed in Lusaka on Wednesday.
Read more : 276 small businesses receive K650,000 loan facility from Indo Zambia Bank
He said the partnership with Massbreed was a purposeful one as it resonate and align with the bank’s strategic focus of supporting MSMEs to foster economic activity and growth.
Shashidhar said the partnership would also enable customers and indeed the general public to benefit from the tailor made finance solution provided through such MoU’s.
He said this would now enable businesses to purchase brand new mining, construction and commercial trucks along with buses on comfortable terms and conditions.
“We believe that our financing solutions will empower MSMEs to be equipped to harness the opportunities which are being made possible by government’s sound economic policies,” Shashidhar said.
He said the MoU signed with Massbreed Investments was therefore yet another testimony of the bank’s resolve and commitment to supporting economic activities at all levels of society.
Shashidhar indicated that the bank’s credit portfolio was now over K4.3 billion, which was financing spread across all economic sphere of Zambia.
He said the portfolio was posed for further cross sectorial growth on account of the positive macro economic environment created by the government.
Speaking at the same function, Massbreed Investment Zambia Country Manager Felix Raston said the financing agreement would boost the participation of local transporters.
Raston commended IZB for its strategic development partnership between the bank and Massbreed, which was aimed at financing the transport sector.
And VIMCO Managing Director Dickson Banda said there had been a boom in the transportation of goods into the neighboring Democratic Republic of Congo (DRC).
Despite having a wider market share, Banda said Zambia had not been able to satisfy market demand for transportation needs due few Zambians owning trucks.
He said the lack of access to finance had seen few Zambians invest in trucks to venture in transportation businesses.
Banda said about 50 percent of the transport business was run by foreign based companies in the country.
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