The Bank of Zambia Financial and Other Statistics report has revealed that a total of K87.8 billion was lent to various economic sectors by commercial banks, with the manufacturing sector getting the largest share.
According to a report seen by the Zambian Business Times (ZBT), commercial banks lent K87.6 billion to 11 economic sectors in the country and out of the total, K23.6 billion went to the manufacturing sector, emerging with the highest loan allocation from commercial banks in 2025.
However, some experts in the financial sector have questioned whether the majority of the funds are going to SMEs to help push the Grow Zambia agenda, considering that SMEs account for about 70% of the country’s private sector.
Economic expert Trevor Hambayi described the manufacturing sector dominating loan allocation from commercial banks as a positive move which will help increase value addition from goods produced locally.
Speaking in an interview with the Zambian Business Times (ZBT), Trevor Hambayi noted that the move is important not only for value addition but also because the manufacturing sector is involved in import substitution, helping to reduce the amount of goods the country imports.
Hambayi noted that despite the loan allocation seeming positive, there is a need to ensure that the majority of the funding is able to accommodate SMEs.
“Small and Medium Enterprises speak to ordinary Zambians and that’s why it is important to ensure that the majority of the loans commercial banks are giving to the manufacturing sector reach SMEs,” said Hambayi.
He added that allocating more financing to Small and Medium Enterprises is very essential and can help contribute to the country’s growth.
“The Grow Zambia agenda is only going to be meaningful if it benefits the Zambian people by making sure that SMEs are the ones getting a huge share, considering that they constitute about 70% of the country’s private sector,” said Hambayi.
He further noted that making financing accessible for SMEs and lowering interest rates can be helpful in achieving the desired economic growth.
Article by Justine Phiri
