The International Finance Corporation (IFC), a member of the World Bank Group, has announced that it will loan USD 25 million to Zambia National Commercial Bank PLC (Zanaco) to help increase access to finance for small and medium-sized enterprises (SMEs), particularly in the agricultural sector. A press release from IFC reports that Zanaco plans to use the loan to help expand its lending to less developed and rural regions of Zambia.

Rachel Kyte, IFC Vice President for Business Advisory Services, said, “IFC is committed to helping build a more inclusive financial sector in Zambia by increasing access to finance for smaller businesses, including in the agribusiness sector. IFC hopes to build on our strong relationship with Zanaco to also increase financing to other important sectors of Zambia’s economy, such as infrastructure and mining.”

The terms of the loan were not specified. Financial data on Zanaco are not available.

About International Finance Corporation (IFC):

A member of the World Bank Group, the International Finance Corporation (IFC) uses loan and debt securities, equity investments and guarantees with the intent of alleviating poverty. It invests in financial institutions and other companies in emerging markets as well as providing technical assistance. The IFC has 182 member countries that ‘collectively determine its policies, and approve investments.’ In fiscal year 2009, its new investments totaled USD 14.5 billion.

About Zambia National Commercial Bank PLC (Zanaco):

Zambia National Commercial Bank PLC (Zanaco) was created in 1969 by the government of the Republic of Zambia. Zanaco provides full banking services and conducts infrastructure development projects in un-banked, rural and urban areas of Zambia. Financial data on Zanaco are not available.

By Matthew Fox, Research Assistant

Sources and Addition Resources:

International Finance Corporation (IFC): Press Release, 15 July 2010: http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/DF344752118A7AF185257761005399A1?OpenDocument

MicroCapital Universe: International Finance Corporation (IFC): http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+(IFC)

Zambia National Commercial Bank PLC (Zanaco): http://www.zanaco.co.zm/index.htm

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