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Access to capital for women entrepreneurs in Zambia

The Bank of Zambia (Boz) marked a major step in advancing women’s financial inclusion after unveiling the results of a landmark survey that found women in Zambia inherently face more challenges in accessing formal financial products and services. The main purpose of the survey was to determine the levels of access, usage and quality of financial services; identify barriers to women financial inclusion as well as assist with modifying the existing policies, strategies and regulatory measures. The bank used gender specific data to identify key barriers facing women in accessing financial services.

The findings helped the Central Bank to have a better understanding of the “magnitude of the financial inclusion gender gap” and be able to develop policies that specifically target women’s financial inclusion”. A number of financial products are available for use by women in business.

Details of these are provided in the links listed below.
angle-left Zambia Export Development Fund (ZEDEF)

Zambia Export Development Fund (ZEDEF)

Zambia Export Development Fund (ZEDEF)
The Zambia Export Development Fund (ZEDEF) was created in 2007. It is run by the Zambia Development Agency (ZDA) and its purpose is to provide short-term low-cost trade finance to exporters of non-traditional export products at concessional rates of LIBOR + 6 percent up to 12 months.


Products and services offered

•  Working Capital Finance
•  Pre and Post Shipment Financing
•  Export Mentoring
•  Market Information
•  Advisory Services
•  Export Processes and Procedures


Terms for borrowing
•  Loans range between US$10, 000.00 TO US$ 100.000.00
•  Interest rates are pegged at LIBOR + 6 percent
•  Short term loans of up to 12 months
•  3 percent Management/Appraisal Fee (there’s an upfront payment upon approval of the loan)
•  K250.00 application fee (non-refundable)


Who is eligible?
•  Exporters or export ready entrepreneurs in non-traditional exports; and
•  Zambian owned or partly owned entities but with Zambian majority shareholding evidenced by proof of residence of Directors or Owners.


Requirements for loan applications
•  Completed ZEDEF Application Form
•  Business Plan with export plan and delivery strategy
•  Evidence of existing capacity and potential for export capable market
      -    Minimum annual turnover K450,000
      -    Ability to fund 25 percent required co-financing contribution
•  Compliance with Zambia Revenue Authority (ZRA), National Pension Scheme Authority (NAPSA) and Patents and Companies Registration Agency (PACRA). This must be evidenced by current compliance, tax clearance and registration certificates.
•  Authority to borrow
•  Audited financial statements for the past two (2) years or management accounts where necessary
•  Latest bank statements for the past six (06) months


Other key documents required
•  Curriculum vitae of directors and key staff
•  Copies of National Registration Cards of directors or owners
•  Passport size photos of directors or owners
•  Copies of proposed collateral and proof of no encumbrances
•  ZEDEF official receipt
•  Disclosure of existing borrowings from other sources established through borrower disclosures and the Credit Reference Bureau (CRB)
•  Applicant’s adherence to existing government and regulatory policy


Past beneficiaries from ZEDEF

Over 40 members from various Producer Associations in sub-sectors listed below have benefited from this revolving fund:

•  Horticulture (including floriculture)
•  Gemstones
•  Handicrafts and Curios
•  Leather and Leather Products
•  Primary Agriculture
•  Processed and Refined Foods
•  Wood and Wood Products


CONTACT INFORMATION

Zambia Export Development Fund
Information Resource Centre
Kwacha House Annex
Cairo Road, Lusaka, Zambia

Zambia Development Agency
P.O. BOX 30819
Privatization House
Nasser Road 
Lusaka, Zambia

Tel: +260 211 220177 or 222858
Fax: +260 211225270
Website: http/www.zda.org.zm

Contact persons

1.    Mr. David Chewe – 0973 044365
2.    Ms. Roselyn.M. Chanda – 0979365854