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Stanbic Bank Zambia has signed a Memorandum of Understanding (MoU) with the Africa Leather and Leather Products Institute (ALLPI) aimed at accelerating growth across the country’s leather value chain and improving access to finance for Micro, Small and Medium Enterprises (MSMEs).
The MoU, signed by Head of Business and Commercial Banking (BCB) Chanda Mwila, marked a major step toward unlocking opportunities in one of Africa’s most underutilised industrial sectors.
The agreement seeks to strengthen inter-regional collaboration, expand financing options and support MSMEs with modern production infrastructure.
Speaking during a panel discussion at the 18th Africa Leather Value Chain Annual Forum 2025, Head of Trade and Africa China Banking, Lillian Simfukwe, said the bank was ready to support entrepreneurs with affordable capital to help narrow the massive supply gap in the footwear market.
In a statement issued in Lusaka on Sunday, she noted that Zambia required 33 million pairs of leather shoes annually, but local manufacturers currently supply only one million pairs, leaving a shortfall of 32 million pairs every year.
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“This is exactly what bank is trying to solve in partnership with ALLPI. Our goal is to structure working capital solutions that directly link MSMEs to off-taker markets while also addressing challenges such as outdated equipment and limited production capacity,” Simfukwe said.
Under the MoU, MSMEs would have access to financing options including Stanbic’s K500,000 collateral-free Tamanga Loan, designed to help small businesses expand operations and improve product quality.
The Bank would also facilitate ecosystem linkages that connect Zambian leather producers to regional and international buyers.
ALLPI Executive Director, Nicholas Mudungwe, welcomed the agreement, saying it would bridge the financing and capability gaps that have long hindered Africa’s ability to add value to its leather resources.
“As Africa, we are far behind in footwear production despite a strong livestock base. This MoU creates opportunities for deeper collaboration, investment and partnerships that our MSMEs urgently need,” he said.
Government also applauded the initiative.
Commerce, Trade and Industry Minister, Chipoka Mulenga, in a speech delivered on his behalf by Tourism Minister Rodney Sikumba, described the MoU as “ground-breaking” and said it would provide MSMEs with the financial support required to scale production and compete within the African Continental Free Trade Area.
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