First Capital Bank Limited to Develop Small and Medium-Sized Enterprises in the Agriculture Sectors in Zambia

By Richard Adorsu-

Photo Credit: Wallpaperup

NEW AFRICA BUSINESS NEWS (NABN) Accra GHANA- First Capital Bank Limited in partnership with the EIB and the European Union have secured a developmental line of credit of US$10 Million. This credit line is part of the Partnership Agreement between the European Union and its Member States, of the one part, and Members of the Organisation of African, Caribbean and Pacific States, to make Credit available that is extended by the EIB to a group of financial institutions located in Zambia.

This funding opportunity aims to accelerate economic growth in the agriculture sector in Zambia through the provisioning of finance for projects promoted by Small and Medium Enterprises in Zambia through First Capital Bank. The key objective of this strategic alliance is to address the existing financing gaps within the agricultural segment and raise the production profile directly benefiting food security of the country.

Speaking on the official signing ceremony of this new line of credit, FMBcapital Holdings’ (Holding company of First Capital Bank) Group Chief Executive Officer, Mr. Jaco Viljoen said: “We are excited to be launching this credit line in Zambia. It is the third country where we
leverage the relationship between First Capital Bank and the EIB to contribute to the development of SMEs in the agricultural segment. He added that “this initiative is in line with the Bank’s value of Citizenship, where we are mindful of the community we serve and how we
can play a role to improve it”.

First Capital Bank Limited believes in mutually beneficial partnerships to support its customers and speaking on the credit facility, the acting Managing Director Shashank Mehta said; “Our goal is to attain incremental growth across our business where the impact has far-reaching
positive effects within the broader economy and communities that we serve”.

He added that: “To demonstrate our commitment to the success of this project, Mr. Andre Potgieter, the Group Head of Agriculture and Corporate Banking will now be based in Zambia and lend his expertise to this partnership”.

The EIB provides finance and expertise for sound and sustainable investment projects in Zambia and is committed to ensuring that Zambian agricultural entrepreneurs can invest through new cooperation with local financial partners.

“As part of Team Europe, the EIB is pleased to provide US$10 million of targeted financing to First Capital Bank Limited to accelerate private sector investment in agriculture, create jobs and aid the post-pandemic recovery and food security of Zambia” said Mr. Thomas Östros, EIB Vice President.

Karolina Stasiak, Ambassador Designate of the European Union to Zambia and COMESA, said “Today we mark another milestone in our long-term partnership with Zambia, through which the EU increasingly supports green partnerships and investment for sustainable recovery, growth and decent job creation in the country. This investment aligns with our Global Gateway commitment and EU’s support to fostering sustainable development. This is about impact investments in environmental, social and economic terms and contribute to improving the livelihoods of smallholder farmers in Zambia, leaving no one behind.”

Through the Zambia Agriculture Value Chain Facility, a joint initiative launched by the EIB and the European Commission, we improve access to suitable finance in the country, mainly to small and medium-sized enterprises (SMEs) active along the agriculture and aquaculture value chains.

These projects illustrate the close cooperation and longstanding relationship fostered with the government of Zambia, local stakeholders, and the European Union.

The bank is appreciative of strategic alliances such as this as they enable them to realise their overall organisational purpose which is to enable people to achieve their extraordinary in their areas of expertise. Funding is an essential element for all business growth and as such the bank shall continue to cultivate relationships provide relevant opportunities.

EIB Global is the EIB Group’s new specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies, and institutions through our offices across the world.

First Capital Bank Zambia is a part of FMBcapital Holdings PLC, which has banking operations in Botswana, Malawi, Mozambique, Zambia, and Zimbabwe. First Capital Bank offers a comprehensive range of corporate, commercial, and retail banking services.

First Capital Bank Zambia is third to receive this funding from EIB following First Capital Bank Malawi and First Capital Bank Zimbabwe.

FMBcapital Holdings Plc provides banking and finance solutions through its operating subsidiaries in five Southern African Development Community (SADC) markets – Botswana, Malawi, Mozambique, Zambia, and Zimbabwe, with an Information Technology and Operations
Shared Service Centre in Mauritius. The Group has a total asset base of over US$1.5 billion, employs over 1,900 staff and services the financial needs of customers across Africa.

For New Africa Business News Richard Adorsu Reports,  Africa Correspondent