The fight over the climate change crisis afflicting the world has heightened with various interest groups and investors extending finance to many affected countries to plug the crisis and promote enterprenuers , Zambia included.
As the Southern African country seeks resources to counter the effects of the climate crisis, the British International Investment, a UK’s development finance institution and impact investor, has extended US$50 million credit line to mitigate as part of the action to reduce the effects on the economy, environment and small-scale businesses caught in the vicious circle.
The gesture, extended through the Zambia National Commercial bank is a boost for small businesses and climate-related projects in Zambia as an impetus to boost climate finance and entrepreneurship in the country.
According to the financial institution-the Zambia National Commercial Bank-Zanaco, the funds is earmarked to be a directed lending line to provide finance for micro-SMEs and climate-related projects in Zambia.
A statement availed to FRA indicates that Zanaco, founded in 1969, and a leading indigenous bank in Zambia, ranked one of the largest and oldest banks in the country will act as link to provide a technical assistance package to building climate and gender investment capacity within the bank.
The investment qualifies under the 2X Challenge – an initiative launched by the development finance institutions (DFIs) of the G7 to mobilise capital to support increased economic empowerment for women in emerging economies.
Zanaco, is interested in climate lending and is developing the necessary processes, capabilities, and sustainability strategies to grow its climate book, mainly in the renewable energy space.
British High Commissioner to Zambia, Nicholas Woolley is happy with the partnership to assist counter the climate change effects buffeting Zambia, one of the fastest growing economies in the world which has been dwarfed by the crisis and states his country’s resolve to find a durable solution.
“The UK remains committed to acting on the ambitions set out in our Green Growth Compact partnership with Zambia. British International Investment’s funding to Zanaco plays a key role in delivering on this agreement by helping boost SME growth and drive sustainable green transformation for the Zambian economy.” he is cited as saying
Nick O’Donohoe, Chief Executive of BII adds his voice: “Zambia’s climate finance capacity is very limited. We expect this deal to demonstrate the potential within the sector in Zambia and provide proof of concept for other investors to follow our lead.””
BII remains committed to providing the capital that African economies need to face the acute economic challenges of the climate emergency.
Zanaco remains committed to supporting women entrepreneurs. The financial institution recently launched a product called Zee Women’s Banking, tailored to the financial needs of women-led SMEs.
“It is a privilege for Zanaco to be the first institution to sign such a facility with BII and we believe this will set the right conditions for the growth of the Zambian economy, ” says its Chief Executive Officer Mukwandi Chibesakunda.
We are proud to be the institution that will deliver this facility to women led MSMEs and MSMEs with a climate agenda because that is where the future lies”
She further argues: “We remain focused on advancing gender smart investments and driving inclusivity in our business, leadership and are excited about our qualification to the 2X Challenge”
The British International Investment is a trusted investment partner to businesses in Africa,
Asia and the Caribbean. It will invest over the next five years in support of the UK Government’s Clean Green Initiative and to create productive, sustainable and inclusive economies in eligible countries in Africa, Asia and the Caribbean.
Over the next five years, at least 30 per cent of BII’s total new commitments by value will be in climate finance.
This makes it one of the world’s largest climate investors in Africa. British International Investment plays a key role in the UK Government’s wider plans to mobilise up to £8 billion a year of public and private sector investment in international projects by 2025.
BII remains a founding member of the 2X Challenge which has raised US $10 billion to empower women’s economic development.
The company has investments in over 1,300 businesses in emerging economies and total assets of £7.7 billion.
British International Investment held its first global launch event in Lusaka in April 2022 and is a key stakeholder to the UK-Zambia Green Growth Compact, the economic partnership to boost trade, investment and SMEs signed by UK and Zambian Ministers in London in November 2021, according to data.
