NKOLE MULAMBIA, Ndola
THE Development Bank of Zambia (DBZ) has recorded a steady increase in its lending portfolio to over K820 million in the last two years.
DBZ managing director Jacob Lushinga said the bank’s direct lending portfolio grew to K821 million as at May 31, 2017 from K521.62 million in 2015.
Mr Lushinga attributed the growth in the bank’s loan book to capital injection funded by the bank’s internal resources and other stakeholders, including Government.
“As a bank, we have continued to grow the loan book and we focus on impacting all the sectors, especially the manufacturing and agriculture,” he said at the just-ended Zambia International Trade Fair.
He said the growth reflects the bank’s ability to play a key role in times of economic down-turn by providing customers with access to finance and delivering value to our shareholders.
In terms of lending, the bank’s investment in the manufacturing sector received the highest chunk of 19 percent, followed by tourism and hospitality at 18 percent while financial service got 13 percent.
Other sectors are agriculture and agro-processing at 12 percent each, construction at 11 percent and energy at five percent. Education got one percent and nine percent went to other services.
He said the bank will continue sourcing for cheap lines of credit, to provide funds to small-and medium-scale enterprises at a lower interest rate compared to other players in the financial sector.
Interpreting this year’s ZITF theme, Innovation for industrialisation, Mr Lushinga said industrialisation requires innovation for the growth of the economy.
He urged firms to be innovative to stand out from the rest, and survive the global turbulent economic times being experienced from time to time.
The bank is also committed to removing micro-level structural rigidities that hinder public and private investment growth, productivity, wealth and employment creation.
In line with the bank’s mission of providing competitively priced, tailor-made financial and advisory solutions to viable local enterprises, Mr Lushinga said DBZ will continue to contribute to the growth of SMEs.