Association of Microfinance Institutions in Zambia – AMIZ has disclosed that only one micro finance institution has so far been approved by the Bank of Zambia – BOZ to access the K10 billion covid 19 stimulus package.
AMOZ confirmed that micro finance institutions have not been left out from the effects of the global pandemic as supply chains have been disrupted hence affecting businesses who’s sourcing has been difficult.
He said, given that some businesses completely closed amidst Covid – 19 people have been finding it difficult to trade and has created a situation where some businesses cannot service their loans with their respective banks due to low cash flows.
AMIZ Executive Director Webby Mate has told the Zambian Business Times – ZBT in an exclusive interview that it is for this reason that the association has commended the introduction of the K10 billion Medium-term facility by the Central Bank – BOZ which will raise some capital for businesses that have badly been hit by the pandemic.
He has since confirmed that one of its members has had their application for the K10 billion funds approved and that four others have made their submissions hence awaiting response. AMIZ did not however name the micro finance institution.
Mate said this development will see many local businesses improve adding that the association will also continue to play its role of ensuring financial institutions have access to the K10 billion funds while help others have their loans approved.
“Applying for money is a process which may take a bit long, however we are ready for the outcome be it positive or negative because that way will know what to do on our end to help financial institutions access financial assistance,” He said
He has confirmed that the association is satisfied with collateral terms applied in the K10 billion facility as it covers for both banks and non-banks financial institutions.
Mate has since called on micro, small and medium businesses to take keen interests in this facility adding that those that need assistance with applications of the funds can reach out to the association for help.
Local businesses have expressed concern that the K10 billion covid 19 stimulus package may end up being utilized by large corporates and multinationals at her expenses of local SMEs. The argument is that there is currently limited to no SME financing which has rendered Business growth by locals a daunting task.
