One of the strongest banking franchises in Africa’s copper producer, Zambia on July 22 converged the Africanacity agenda with the nations entrepreneurial financing needs in a landmark memorandum. Absa Bank Zambia successfully inked a Memorandum of Understanding MoU with the Zambia Development Agenda – ZDA. This initiative targets to provide decently priced finance products to the Micro, Small and Medium Enterprise (MSME) client bracket of the Zambian economy.
The MSME sector remains in the labyrinth of pandemic induced hurdles and business disruption that has adversely impacted operational resilience. The memorandum will provide an opportunity for MSMEs to access tailor-made business development support services to enhance their performance and competiveness. ZDA will after undertaking a baseline assessment, identify and recommend to Absa Bank Zambia, MSMEs in need of financial services.
Absa Bank Zambia PLC – Managing Director Mizinga Melu
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“We are excited as a bank to sign the MOU with the ZDA as we share the same vision of supporting the MSME sector to growth their business and ultimately contribute to growth go the economy. We will leverage of this partnership and ensure that we train MSMEs on various business acumen, provide support in terms of access to export markets through trade expos and facilitation of market linkages.”
Absa Bank PLC Managing Director Mizinga Melu
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Access to capital has remained a key hurdle in African markets with most MSMEs grappling with the ability to present bankable initiatives whose gap the Zambia Development Agency has remained alive to and continued to play a key role in identify, mentoring and nurturing this niche under the leadership of Makasa. COVID19 has exacerbated the financing challenge which Absa Bank has in turn addressed plugged through relief packages. the MOU signed between the two address the capacity building section of the MSME as they build sustainability and provide comfort to the lender on the quality of counterparties to be financed. ZDA will not only provide membership but will also assist with access to markets for the MSMEs to sell their end products of services for which the financing will be for.
Zambia Development Agency – Director General Mukula Makasa
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“This collaboration will help address some of the challenges that MSMEs face such as access to business finance and working capital. I am confident that this partnership will yield more positive results in the foreseeable future.”
Zambia Development Agency – Director General – Mukula Makasa
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Both Absa Zambia and the Zambia Development Agency remain committed to growth of the copper producer through support the MSME and other key sectors.
The Kwacha Arbitrageur