Business

Zanaco makes K300 million available for SMEs

Zanaco building.

KABANDA CHULU, Lusaka
ZANACO Plc has made available K300 million to small and medium entrepreneurs (SMEs) and other productive sectors of the economy, as a direct response to the reduction in the monetary policy rate and reserve ratios.

And Zanaco managing director Henk Mulder says the bank has reduced by 1.5 percentage points in the interest rates of loans linked to the policy rate.
Last month, Bank of Zambia lowered the monetary policy rate from 14 percent to 12.5 percent and reduced the percentage of deposits that banks are required to hold as reserves from 15.5 percent to 12.5 percent.
During a media briefing yesterday, Mr Mulder said the bank has welcomed the positive actions taken by the Central Bank to increase economic activities in the country.
“These actions will turn around the economy where credit to the private sector has contracted by an average of 14 percent year-on-year. After succeeding in bringing down inflation back to single digit using tight monetary policy, it is now time to turn to the important matter of driving strong economic growth.
“This is where the K300 million is going, to SMEs including smallholder farmers as the drivers of economic growth. We advise businesses that had put on hold investment decisions due to high interest rates to take advantage of these market opportunities,” he said.

 




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