ZANACO boosts financial inclusion for mining SMEs with $50 million facility

ZANACO has approved US$50 million in financing for mining contractors, as part of its drive to enhance financial inclusion and build capacity among Small and Medium Enterprises (SMEs) in Zambia’s mining value chain.

Chali Mwefyeni, Chief Commercial Officer at ZANACO, speaking at the Zambia Mining and Investment Insaka held at the Mulungushi International Conference Centre in Lusaka said the funding was aimed at empowering local suppliers and contractors who were critical to the mining sector’s growth.

“We want to ensure that the entire mining ecosystem benefits — from large operators to SMEs that are often excluded from mainstream finance,” Mwefyeni said.

He explained that ZANACO’s financial inclusion strategy was not just about lending, but about strengthening businesses to manage risks, improve governance, and align with environmental and social standards.

“When we finance mining operations or suppliers, we assess how they manage environmental and social impact, their ability to deliver, and how they are partnering within the value chain,” Mwefyeni added.

The bank is also focusing on building the capacity of SMEs to manage contracts effectively, noting that contract performance remained a key determinant of business sustainability.

“As we put money into these businesses, we train them on how to manage contracts well, ensuring they can deliver and maintain their credibility with large mining firms,” he said.

He described the process of financially including mining SMEs as “like changing the wheel of a moving car” — a continuous effort requiring patience, coordination, and collaboration across the sector.

Mwefyeni added that ZANACO was prioritizing partnerships with established mining houses to identify and support top-performing local suppliers.

“If a mining company can vouch for a supplier they’ve worked with for years, we’ll be more confident to finance them. Collaboration is key to accelerating inclusion,” he said.

“It’s about ensuring that our customers are not only financially included but are also contributing meaningfully to the economy,” Mwefyeni added.

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