ZAMBIA AGRICULTURE - RSF ZANACO

Promoter – Financial Intermediary

ZAMBIA NATIONAL COMMERCIAL BANK PLC

Location

• Zambia

Description

Risk-sharing facility supported by a grant from the European Commission to provide guarantees to Zanaco Plc financing agri-food value chain investments in Zambia.

Additionality and Impact

The risk-sharing facility (RSF) complementing the loan facility offered to the financial intermediary Zanaco is intended to benefit private sector entities operating in the agri-food sector in Zambia. This RSF will increase Zanaco's ability to extend financing offering to more risky or smaller entities. Thereby, this facility will strengthen its outreach to agri-food enterprises and support integration of smallholder farmers into commercial value chains.The proposed investment is aligned with one of the main priorities set under the EU Agenda for change (the basis for EU's development policy), namely inclusive and sustainable growth for human development.Fostering private sector development, including SMEs, is specifically mentioned as an enabler. Zambia is considered a country with a significant gap in sustainable development necessary to improve employment outcomes and overall economic growth. The proposed investment is expected to contribute toward a number of Sustainable Development Goals(SDGs), most notably SDG8 "Decent work and economic growth".

Objectives

This project will increase financing of agriculture value chain projects carried out by private sector enterprises through providing a risk-sharing facility to Zambia National Commercial Bank Plc.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 4 million

Total cost (Approximate amount)

EUR 30 million

Environmental aspects

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Procurement

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Status

Signed - 30/07/2021