The partnership, part of Proparco’s Choose Africa and ARIZ initiatives, consists of two portfolio loan guarantees totalling 2 million Euros. The guarantees will further boost AB Bank’s financing offering to MSMEs. At the same occasion, the two institutions signed a Confirmation of Eligibility for an ARIZ single-loan guarantee mechanism. This instrument will enable AB Bank to finance Micro Finance Institutions (MFIs), thereby contributing to the growth of rural small-scale farmers in Zambia.
The signing ceremony took place at Neelkanth Sarovar Premiere hotel in Lusaka on 1st February 2022. His Excellency, Mr. François Goldblatt, French Ambassador to Zambia and Special Representative of the French government to COMESA graced the occasion.
AB Bank Zambia Limited (ABZ), a subsidiary of Access Holding, is the only Zambian bank specialized in microfinance, offering a wide-range of financial solutions to MSMEs: loans, overdrafts, savings solutions, accounts, national and international transfers, insurances, digital channels and its flagship e-wallet, eTumba. Proparco has partnered with ABZ since 2018, and is also a minority shareholder of the bank, via its specialized investment vehicle FISEA (Investment and Support Fund for Businesses in Africa).
The Resilience component of the French Choose Africa initiative is supported by the French government. This EUR 1billion component, launched in November 2020 in response to the Covid-19 pandemic economic crisis, provides assistance to start-ups and MSMEs in Africa (total disbursement of EUR 3.5billion). Since 2018, over EUR 2 billion of this amount has been committed by the AFD Group under the French Choose Africa initiative.
This intervention supports the Bank’s ability to lend to SME and micro businesses in various sectors, contributing to strengthening Zambia’s financial sector, in line with the Sustainable Development Goals one and eight (“No Poverty” and “Decent Work and Economic Growth”).
Speaking at the signing ceremony, AB Bank’s Deputy CEO and Chief Financial Officer, Mr. Maximo Mulenga said that this landmark partnership will further enhance AB Bank’s provision of simple and affordable financial services to women and rural entrepreneurs.