Ecobank Transnational Incorporated (ETI) has invested USD 15million in Ecobank Zambia.
The investment is a share of a USD 200 Mn loan facility packaged by Netherlands Development Finance Company (FMO), a Dutch Development Bank and other DFIs.
The investment will be utilized to boost the SME sector as the funds will be dispensed to enterprising SMEs across various sectors of the economy.
The SMEs are seen as very important to the economy most especially in the areas of job creation and economic growth.
The loan facility will be disbursed to help these businesses grow and in turn, drive economic growth.
Ecobank Zambia Managing Director Kola Adeleke said, “The USD15 Million investment by FMO into Ecobank demonstrates international investors’ approval and confidence in Ecobank’s strategy and prospects as a strong and sustainable pan-African financial services institution. It also demonstrates the ability of African corporates to access international capital markets.”
Adeleke also noted that SMEs continue to lack access to credits reiterating the bank’s support for the sector.
“We believe that supporting SMEs will help stimulate economic growth due to the sector’s contribution towards the Gross Domestic Product and employment creation,” Mr. Adeleke said.
According to reports, the SME sector accounts for 97 percent of all businesses in Zambia. And Almost half (49 percent) perceive access to credit as a major obstacle to their business operations.
Zambia’s SME sector continues to record growth. About 27,000 jobs were created by small-and-medium enterprises (SMEs) in 2018 alone, this is according to the government.
