Signature(s)
Summary sheet
- Credit lines - Credit lines
The project consists in a credit line with Zambia Industrial Commercial Bank (ZICB) to provide loans for eligible small and medium-sized enterprises (SMEs) and mid-caps active in the agriculture value chains.
The aim is to enhance access to finance for the eligible target beneficiaries.
Access to finance is one of the main market constrains in Zambia. The Agriculture Value Chain credit line provided by the European Investment Bank (EIB) to Zambia Industrial Commercial Bank (ZICB) bears a longer maturity than typically available in the market. The EIB financing and the planned complementary risk sharing facility will contribute to the financing of the projects and enterprises still being underserved and crowd in other investments. This RSF will allow the financial intermediary to reduce the commonly very high collateral requirements when lending, mainly to Small and Medium sized Enterprises (SMEs) active in the sector.
The EIB aims through this operation to generate opportunities to: (i) promote inclusive value chain development, (ii) foster green and sustainable agriculture and (iii) embrace digitization in the targeted sector.
ZICB and final beneficiaries may further benefit from Technical Assistance focussed on a broad range of capacity building activities.
The project is under the auspices of the EU's external action plan Neighbourhood, Development and International Cooperation Instrument (NDICI) and its Investment Framework as well as the African Union's Agenda 2063 and the EU Sub-Saharan Africa Multi-Annual Indicative programme 2021-2027, which supports a stronger regional and continental economic integration.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Under EFSD+ Guarantee