The Zambia Development Agency (ZDA) and Absa Bank Zambia have signed a Memorandum of Understanding – MOU to support Micro, Small and Medium Enterprises (MSMEs) access affordable financial services.
The MoU will also present an opportunity for MSMEs to access tailor-made business development support services to enhance their performance and competiveness.
Speaking during the virtual MoU signing ceremony monitored by the Zambian Business Times-ZBT, Absa Bank Zambia Managing Director, Mizinga Melu said, “We are excited as a Bank to formally sign this MoU with ZDA as we share the same vision of supporting the MSME segment grow their businesses and ultimately contribute to the growth of the economy.
Melu said the bank will leverage on this partnership with ZDA and ensure that it trains MSMEs on various business acumen, provide support in terms of access to export markets through trade expos and facilitate local market linkages.
“The Bank also remains committed to driving the Financial Inclusion agenda through our Citizenship initiatives.
“Case in point is the support to MSMEs through Business Banking portfolio, Youth Mentorship Programme and the support to the vulnerable groups during this Covid-19 period,” she added.
In this MoU, ZDA will after undertaking a baseline assessment, identify and recommend to Absa Bank Zambia, MSMEs in need of financial services while Absa in consultation with ZDA will identify financial products suitable for the recommended MSMEs.
MSMEs will receive financial support in terms of loans on an individual basis provided they demonstrate their capacity.
Absa has a mandate to provide a wide array of tailor-made financial solutions to business enterprises including MSMEs, while ZDA has a mandate to facilitate trade and investment, and promote growth and development of MSMEs to spur economic diversification and job creation.
The development agency will also continue to provide business development support services, coaching and mentorship services to the MSMEs recommended to Absa Bank Zambia, which will in turn provide business financing, financial extension and working capital facilities to the recommended MSMEs.
And speaking at the same event, ZDA Director General Mukula Makasa said: “This collaboration will help solve some of the challenges that MSMEs face such as access to business financing and working capital. I am confident that this partnership will yield more positive results in the foreseeable future.”
Makasa said the main objective of the signed MoU is to facilitate the provision of Business Financing and other business development services to MSMEs to enhance their business performance and improve competitiveness.
