The Industrial Development Corporation (IDC) of South Africa has signed a USD20m line of credit with the Development Bank of Zambia (DBZ) to support Small and Medium Enterprises (SMEs).
Ashley Petersen, Senior Business Development Manager at IDC, made the announcement during the Invest in Zambia Business Forum held in Johannesburg on November 4th, 2016.
The line of credit is expected to trigger economic activity and consequently help create employment in Zambia.
In October 2016, the African Development Bank (AfDB) approved a USD50m line of credit to DBZ for lending to local SMEs.
Earlier in 2016, DBZ allocated USD30m for lending to SMEs in the country. These loans mean to create stable employment, empower citizens, develop infrastructure, and contribute to Zambia’s economic growth.
In March 2015, AfDB approved a USD3m line of credit to Madison Finance Company, a financial institution targeting local SMEs in Zambia by offering various financial products and services.
The line of credit aimed to support at least 1,000 SMEs involved in trade, agriculture, construction, manufacturing, hospitality, and services.
SMEs account for 70% of Zambia’s GDP and 88% of the employment, according to a research from the Bank of Zambia (BoZ) and the International Labor Organization (ILO).