European Investment Bank and First Capital Bank Partner to Support SMEs in Zambia's Agriculture Sector

Strategic Insights -

In a strategic move to enhance the agriculture sector in Zambia, the European Investment Bank (EIB) and First Capital Bank Limited have partnered to establish a US$10 million developmental line of credit. The partnership aims to address financing gaps within the agricultural segment and accelerate economic growth by providing finance to Small and Medium Enterprises (SMEs) in Zambia. This initiative is part of the EU's effort to support green partnerships and investment for sustainable recovery, growth, and decent job creation in the country.

Key Takeaways:

  • The partnership between the EIB and First Capital Bank Limited aims to address the existing financing gaps within the agricultural segment in Zambia and accelerate economic growth through the provisioning of finance for projects promoted by SMEs.
  • The US$10 million developmental line of credit is part of the Partnership Agreement between the European Union and its Member States and the Organisation of African, Caribbean and Pacific States.
  • The key objective of this strategic alliance is to enhance food security in Zambia by directly benefiting the country's agricultural sector.
  • The partnership will see First Capital Bank on-lend to SME customers in the agriculture sector, enhancing the production profile and addressing the existing financing gaps.
  • The EIB, in partnership with the European Commission, launched the Zambia Agriculture Value Chain Facility, which aims to improve access to suitable finance in the country, mainly to SMEs active along the agriculture and aquaculture value chains.

Statistics:

  • The partnership will provide US$10 million in funding to support SMEs in Zambia's agriculture sector.
  • The facility will target SMEs active along the agriculture and aquaculture value chains.
  • The EIB has a total asset base of over US$1.5 billion and employs over 1,900 staff.
  • First Capital Bank Limited has banking operations in five Southern African Development Community (SADC) markets - Botswana, Malawi, Mozambique, Zambia, and Zimbabwe.

Sources:

  • European Investment Bank. (2023). First Capital Bank Limited partners with the European Investment Bank to develop SMEs in the agriculture sector through a USD10million developmental line of credit.
  • FMBcapital Holdings Plc. (N/A). About FMBcapital Holdings Plc.
  • First Capital Bank. (N/A). About First Capital Bank.