Zambia’s largest indigenous bank by asset size and profitability, the Lusaka Securities Exchange (LuSE) listed Zambia National Commercial Bank (ZM:ISIN0000000250) has demonstrated relentless partnership in the copper producer, Zambia’s economic growth agenda through financing key pillar sectors. One area the big strong reliable bank can be given credit for is agribusiness which has been its historical focal point especially in helping small scale farmers realise their potential and in so doing simultaneously financing the food security agenda as Zambia navigates its strides to be the continents bread basket.
ZANACO Plc on March 30, sealed a landmark partnership with the German Development Cooperation (GIZ) under the Agriculture Finance Project (AFP) funded by the Germany Federal Ministry of Economic Cooperation and Development (BMZ), to provide tailor made financial services to more than 10,000 micro, small and medium scale farmers and 200 rural enterprises. The deal is new for the bank but for its new Chief Executive Officer – Mukwandi Chibesakunda who has remained a trusted partner to the GIZ as evidenced by similar deals signed in her previous roles, a vivid demonstration of her passion for agriculture.
ZANACO Plc Chief Executive Officer – Ms. Mukwandi Chibesakunda
Access to finance remains a systematic hurdle for African nations on account of elevated finance costs attributed to economic posture of the continent which finance executives as Ms. Chibesakunda seek solutions to ensure the small scale farmers are catered for with affordable funding through such partnerships. Speaking at the signing ceremony, ZANACO Chief Executive Officer, Mukwandi Chibesakunda said the Bank has been making positive strides in ensuring access to finance for various players in the agriculture value chain.
The partnership will see the two institutions offer tailor made financial solutions, financial literacy training and capacity building to the farmers.
Mr. Helmut Hauschild GIZ Country Director
“This partnership allows us to leverage on the expertise that ZANACO has in the agricultural space in order to achieve and deliver sustainable development, whichforms the framework that guides all our partnerships and cooperation. The objective of our collaboration is to support at least 10,000 farmers and agribusiness with tailor made financial services to enhance agricultural sector development and financial inclusion. GIZ is truly excited to be undertaking this partnership with ZANACO” said Mr. Helmut Hauschild GIZ Country Director
“With our already existing solution Agripay, we have been able to offer low-cost transaction solutions and valuable farming information to micro, small and medium scale farmers. This partnership further affirms our commitment to supporting sectors and businesses that grow individuals, businesses and ultimately Zambia,” Ms. Chibesakunda said.
For many years the agriculture potential of small to medium sized farmers has remained stunted due to financing challenges. The farmer input support program by the Zambian authorities has cushioned the input needs of small scale farmers but financing partnerships as the one signed between ZANACO Plc and GIZ will supplement government efforts to grow the agriculture sector.
The Kwacha Arbitrageur
