FNB Zambia, a leading financial institution in Zambia, has launched an initiative aimed at providing comprehensive support to small and medium-sized enterprises (SMEs) in the country. The move is in line with the bank’s commitment to becoming a key partner in business growth, as well as to complement the government’s efforts in promoting economic diversification through SME support.
According to Bydon Longwe, CEO of FNB Zambia, the bank has a strong understanding of the challenges faced by the SME sector, having worked with over 13,000 SMEs in the country. As such, FNB has developed intuitive solutions to help fuel business growth, including adjusting financing interest rates and borrowing conditions to enable businesses, especially SMEs, to capitalize on opportunities created by the government’s positive policy pronouncements.
The bank has also set aside K5 billion for lending to the private sector, with K2 billion of that earmarked for SMEs. FNB Zambia is looking to partner with the government to actualize the Credit Guarantee Scheme announced in the budget so that they can fully support the growth of an innovative and diversified economy.
In addition to financial support, FNB Zambia is committed to creating a better world through sustainable financial solutions that add to economic growth. According to Kabanda Lilanda, Head of Business and Commercial at FNB Zambia, the bank has developed SME lending products with low-interest rates and flexible tenors to meet the unique needs of this key sector. Customers who have banked with FNB for at least six months and have a good track record can also access collateral-free loans for up to 36 months.
FNB Zambia offers Green Loans for as low as 15 percent to allow access to alternative energy solutions aimed at sustaining businesses, a critical initiative considering the recent electricity challenges faced in the country and the region. The bank also offers competitively priced commercial property finance, short to long-term loans, trade financing solutions, and other initiatives that align FNB as a growth partner on the market.
FNB Zambia‘s commitment to SMEs has not gone unnoticed, as the bank was named the 2022 SME Bank of The Year Zambia by International Business Magazine. To help businesses operate sustainably and responsibly, the award-winning entity also provides non-financial support through financial literacy and maintaining strong relationships with local chambers of commerce and business support entities essential to supporting SMEs. The bank’s products and services also cater heavily to marginalized women and aspiring entrepreneurs.
In conclusion, FNB Zambia‘s initiative to support SME business growth is a testament to the bank’s commitment to becoming a key partner in business growth, as well as to complement the government’s efforts in promoting economic diversification through SME support. With a range of financial and non-financial products and services, FNB Zambia is well-positioned to support the growth and development of SMEs in the country.
