By Derrick Silimina
The Zambia Export Development Fund has raised $25 million in third party funding support from development finance funders and investors through its appointed fund-raising agent.
In a statement, ZEDF Board Chairperson Biemba Maliti said this funding support which raises the fund base from $4 million to $29 million will enable ZEDF expand its financing base, increasing the loan size and tenure, launch new financing capabilities and provide its customers with a broadened range of financing products.
“This is intended to provide affordable finance for SMEs, firms, women and youth which is a challenge for most, consequently hampers business growth and expansion,” Professor Maliti said.
He noted that prior to this credit line, the fund primarily depended on seed capital from the European Union (EU) while its operating costs were partly met by the Zambian government and through the Zambia Development Agency (ZDA).
Prof Maliti added that the leading non-traditional export finance entity for Zambian SMEs and firms ensure that the Funding line will support the mission to provide non-traditional exporters affordable and appropriate finance and make meaningful contribution to the growth of non-traditional exports, and job creation adding that the fund will be able to offer both working capital and expenditure finance.
“In the view of the above, clients are reminded that this is a revolving fund and as such, clients are urged and expected to spend the money wisely for the intended purpose and ensure to repay the loans to enable other borrowers access the facility.”
