The Zambia Development Agency – ZDA says it has set aside a US$2.2 million loan under the Zambia Export Development Fund – ZEDEF meant for Small and Medium Enterprises – SMEs ready for non-traditional exports to access from US$10,000 upto US$100,000.
ZEDEF is an initiative between the Zambian government and the European Union – EU aimed at helping Zambia to diversify its economy in the export sector through the support of export ready local businesses
In an exclusive interview with the Zambian Business Times -ZBT, ZEDEF fund Manager Dr. David Chewe said the agency provides a low cost financial loan at 8 percent interest to exporters of non-traditional exports as transport coverage.
He says one is eligible for the loan if he or she is export ready in non-traditional export and has a registered Business with the Zambia Revenue Authority – ZRA, PACRA and NAPSA and meet the required terms and conditions for export readiness set by the agency.
“As an agency, we do provide export loan to entrepreneurs who are export ready in non-traditional export at 8 percent interest and one of the objective of this fund is to increase the contributions of non-traditional export to Zambia’s export earnings. This year we have set aside a budget of $2.2 million for a minimum of 22 beneficiaries,” he said.
Dr. Chewe said one can qualify for a loan of up to a minimum of US$10,000 and a maximum of US$100,000. He says the loan is paid back once the beneficiary sells his products to the intended export market so as to enable more people benefit from these loans.
“We do not just give out the loans to any SME but to the ones which are export ready. Meaning one has to have a business plan with an export strategy and a consistent supplier of quality products certified by the authority. We are also interested in understanding how the company projects to increase its exports out of Zambia,” he said.
