The scheme aims to strengthen financial inclusion while encouraging entrepreneurship, with a particular focus on supporting youth- and women-led businesses.

FNB Zambia Chief Executive Officer, Kapumpe Chola, said the initiative targets businesses that are viable and demonstrate potential for sustainability and growth, even when lacking collateral.

“Some of the criteria of the scheme is really any viable business that an MSME has. They really must demonstrate that it is viable, it is sustainable, there is potential for growth and profitability. For those MSMEs that are also looking to grow but have inadequate collateral, the scheme specifically targets those that are credit worthy but lack sufficient collateral,” Chola explained.

Officials say the partnership between FNB Zambia and ZCGS is expected to ease financing barriers that have historically prevented many small businesses from accessing the credit needed to scale and compete.

–ChannelAfrica–