ZCGS, FNB seal K100 million partnership to boost MSME growth

The Zambia Credit Guarantee Scheme (ZCGS) and First National Bank (FNB) Zambia have reportedly signed a K100 million partnership aimed at unlocking growth opportunities for Micro, Small, and Medium Enterprises (MSMEs) across the country.

Under the agreement, ZCGS is expected to provide a K50 million partial guarantee on loans disbursed by FNB to qualifying MSMEs operating in key economic sectors.

The initiative is designed to ease access to finance for entrepreneurs, particularly those in rural areas who have traditionally depended on the informal sector with its high interest rates, according to its initiators.

Speaking at the signing ceremony in Lusaka on Monday at the FNB Training Centre, ZCGS Chief Executive Officer, Mary Mumba, said the partnership brought to 15 the number of financial institutions the scheme had engaged in its mission to broaden financing for small businesses.

“This partnership is going to unlock financing options for MSMEs. We anticipate that it will boost production, stimulate job creation, and give underserved businesses, especially in rural areas, a chance to thrive,” she said.

To qualify for the facility, applicants must have maintained an account with FNB Zambia for at least six months.

FNB Zambia Chief Executive Officer, Kapumpe Chola, described MSMEs as the backbone of the economy, noting that limited access to affordable finance remains their greatest challenge.

“With the right financial support, MSMEs can expand, create more jobs, and contribute more significantly to economic growth. We encourage our clients to seize this opportunity to grow their businesses,” Chola said, adding that the bank will soon roll out additional programmes to boost the sector.

Head of Business and Commercial Banking, Kabanda Lilanda, said the partnership better positions the bank to deliver tailored solutions that strengthen business expansion and sustainability.

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