Banc ABC to secure K50bn loan for SMEs | Times of Zambia

By Maimbolwa Mulikelela -
BANCABC will secure a long term loan of US$10 million (approximately K50 billion) from the World Business Capital Incorporation (WBC) to support small and medium enterprises (SMEs) in Zambia.
WBC is a commercial finance company that makes flexible long-term loans to businesses with operations and expansion projects in developing markets overseas and rural communities throughout America.
BancABC Zambia managing director Clergy Simatyaba said the bank was working on getting another line of credit from WBC, an American investment facility to support the SMEs in the country.
In an interview in Lusaka, Mr Simatyaba said the funds would offer unique opportunities for SMEs needing financial support in Zambia, as it would allow long term duration for repaying the loan.
?We got a line of credit from Norfund of $5 million last year which we are currently giving out on the market. We are currently working on getting another line of credit from WBC and we are looking at $10 million so in total, we should be channelling out about $15 million in the Zambian community meant for SMEs,? Mr Simatyaba said.
He said the SMEs throughout the country would benefit from the funds, saying the bank was working on ensuring that SMEs got the necessary financial support.
?We have come to realise as a bank that the SMEs may not even know how to write business ideas and what we need to do is to go and sit down with them and extract and develop the business plan and determine what type of financing they will need to execute their business proposals they may have,? Mr Simatyaba said.
He said in supporting the SMEs, BancABC was the only bank accepting household goods as collateral, adding that SMEs would be able to borrow using their household goods.
Collateral can be anything.It does not necessarily mean it has to be a property like most lenders ask for but for us we say, you can have your household goods and borrow against them to support your business activities,? Mr Simatyaba said.
BancABC which has operations in six African countries? Botswana, Mozambique, Tanzania, Zambia, Zimbabwe and South Africa, has been providing wholesale banking to corporate clients and are now moving to serve SMEs and retail segments because they are in need of financial support.

Source: http://www.times.co.zm/?p=15859

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