NATSAVE Joins Hands with ZCGS to Add Access to Finance for SMEs

NATSAVE Bank has signed a Memorandum of Understanding with the Zambia Credit Guarantee Scheme (ZCGS) to increase access to financing for viable SMEs.

NATSAVE CEO Malcolm Chabala stated the bank will provide credit facilities to eligible MSMEs and SMEs to stimulate economic growth in Zambia. According to Chabala, "the MOU will benefit Zambians as they will be accessing lower financing costs" through extended maturity periods and larger loan amounts.

The CEO indicated the partnership addresses SMEs' difficulty in meeting traditional collateral requirements imposed by financial institutions. He emphasized NATSAVE's commitment to supporting government initiatives promoting financial inclusion.

Finance Minister Situmbeko Musokotwane noted that SMEs comprise 90% of businesses nationally and represent the country's largest employment sector. The government has increased fund allocation to ZCGS accordingly.

ZCGS CEO Mary Mumba described the partnership as strengthening MSME credit development at affordable rates. She encouraged other institutions to collaborate with ZCGS to expand market access and business development services for micro and small enterprises.