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DBZ in $30m China bank loan

COLAS Zambia general manager Kobus Bertram (left) and Road Development Agency chief executive officer Kanyuka Mumba (right) during a seminar on ‘Bituminous range of products’ in collaboration with the Engineering Institute of Zambia held at Radisson Blu Hotel in Lusaka over the weekend. Looking on is Colas sales and marketing manager Miliko Limaata. PICTURE: BRIAN MALAMA.

DEVELOPMENT Bank of Zambia (DBZ) has acquired a line of credit worth US$30 million from China Development Bank Corporation to provide onward lending to small- and medium-scale enterprises (SMEs) in the country.
Recently, African Development Bank (AfDB) also announced that it would give DBZ a loan facility of about US$50 million for onward lending to various sectors of the economy.
DBZ senior stakeholder relations officer Kaputo Liyani said in a statement yesterday that the funds under the facility are part of China Development Bank Corporation and DBZ’s commitment to provide funding to enhance the development of SMEs.
Mr Liyani said the development will create stable employment, empower citizens, develop infrastructure, and consequently, contribute to economic growth.
He said DBZ will provide a minimum loan of K1 million to any eligible SME.
“Any limited liability company is eligible to apply for a facility under this line of credit, provided they meet all the requirements, among them the company’s ability to provide cash cover collateral of 20 percent of the total loan amount requested. The loan amount should be a minimum of K1 million,” he said.
Mr Liyani also said the bank will only finance projects that are technically feasible, economically viable and capable of yielding an acceptable rate of return on investment.
Meanwhile, Mr Liyani says AfDB is expected to provide a loan facility of about US$50 million in view of DBZ’s commitment to tackling poor and costly access to capital, and removing micro-level structural rigidities that hinder public and private investment growth.

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