Stanbic and First National Bank (FNB) have started providing financing against warehouse receipts for grains deposited with the Zambia Agriculture Commodity Exchange (ZAMACE). According to the banks, receipts against deposited grains will also act as collateral to be redeemed for cash. ZAMACE operates an agricultural commodity exchange, supported by a…
The Bankers Association of Zambia (BAZ) says commercial Zambian banks have started piloting the use of livestock as collateral. Many Zambians welcomed the move, saying it is hard to meet collateral demands set by banks. According to BAZ, the pilot programme is conducted in collaboration with the Dairy Association of…
The drop in policy lending rates as well as the lowering of the statutory reserve ratio will open borrowing opportunities for small and medium enterprises (SME’s), including agricultural operations. According to the Private Sector Development Association (PSDA), the downward adjustment will move SME’s from short-term borrowing to medium-term borrowing as…
The opportunities were there for farmers to diversify and grow their businesses through funding, said Stanbic’s Head of Agribusiness in Zambia, Mr. Leon Kotze. However, farmers needed to be able to show they had the ability “to measure and monitor the life cycles of their various commodities and the various…
Zambia’s Finance Minister – Felix Mutati – has again called on banks to expand customised financial services to rural smallholder farmers. The minister said better access to finance was critical to the government’s vision to drive diverse economic growth through agriculture. “Banks must ensure that smallholder farmers and women in…
