MICROCAPITAL BRIEF: IFC Invests $25m in Debt in First National Bank Zambia, Primarily For Agricultural SMEs

International Finance Corporation (IFC), a member of the World Bank Group, recently loaned USD 25 million to First National Bank Zambia (FNB Zambia), a subsidiary of FirstRand Group South Africa. The funds will be used by FNB Zambia to increase access to finance by small and medium-sized businesses, particularly in the agricultural sector. In Zambia approximately half the population lives in rural areas. As of December 2015, IFC has 184 member countries that drive its policies and approve disbursements. As of the same month, IFC reported total assets of USD 87.5 billion, net income of USD 445 million and return on average assets of 0.5 percent. FirstRand Group South Africa, of which FNB Zambia is a subsidiary, reported normalised earnings of ZAR 21 billion (approximately USD 1 billion), normalised net assets of ZAR 90 billion (approximately USD 6 billion) and return on equity of 24.7 percent for the year ending June 30, 2015.

By Imke Herholdt, Research Associate

About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a US-based member of the World Bank Group, offers loans, equity investments, technical assistance, and advisory and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of year-end 2015, IFC has 184 member countries that drive its policies and approve disbursements. As of the same year, IFC reported total assets of USD 87.5 billion, net income of USD 445 million and return on average assets of 0.5 percent.

About First National Bank Zambia (FNB Zambia)
FNB Zambia, a subsidiary of FirstRand Group South Africa headquartered in Lusaka, Zambia, commenced operations in 2009. It offers banking services to individual and business customers in Botswana, Namibia, Swaziland and Zambia. FirstRand Group South Africa reported normalised earnings of ZAR 21 billion (approximately USD 1 billion), normalised net assets of ZAR 90 billion (approximately USD 6 billion) and return on equity of 24.7 percent for the year ending June 30, 2015.

Sources and Additional Resources
[1] IFC: IFC Supports FNB Zambia to Increase Lending to Small-Scale Businesses and Agriculture
[2] Farmers Review Africa: IFC Supports FNB Zambia to Increase Lending to Small-Scale Businesses and Agriculture
[3] StarAFrica: IFC Supports FNB Zambia to Increase Lending to Small-Scale Businesses and Agriculture
[4] MicroCapital Universe Profile: International Finance Corporation (IFC)
[5] FNB Zambia
[6] FirstRand

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