Despite positive economic indicators, such as an 18% appreciation of the kwacha, international gross reserves exceeding $6 billion, and single-digit inflation within the 6-8% target band, Zambia’s private sector continues to face challenges accessing affordable credit due to persistently high lending rates. Financial sector experts argue that, given the country’s macroeconomic stability, lending rates should now be more favorable for borrowers,particularly for small and medium enterprises (SMEs) that drive much of Zambia’s economic growth. Economic expert Trevor Hambayi told the Zambian Business Times (ZBT) that improving access to capital is crucial for accelerating GDP growth, especially as approximately 97% of...
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