Stanbic and PEP Zambia sign funding MoU

STANBIC Bank has signed an agreement with the Private Enterprise Programme-Zambia (PEPZ) that seeks to provide the funding required by small-scale entrepreneurs to expand their businesses and tap into the local supply chain.

The memorandum of understanding (MOU) between the two organisations aims to build and fortify the capacity of Zambian micro, small and medium-sized enterprises (MSMEs) in the private sector to create jobs and contribute to the diversification of the economy

Terms of the alliance indicate that PEPZ will introduce micro, small and medium-sized enterprises (MSMEs) to Stanbic Bank for the provision of finance and technical support where necessary.

The move is consistent with PEPZ’s Business Linkages Programme that seeks to bolster the worth and quality of goods and services secured from local suppliers by large corporates by refining training and cementing in-country capacity to facilitate access of broader markets by MSMEs. PEP-Z also provides advisory, finance and investment services to MSMEs in various sectors.

It is consistent with the Stanbic Bank strategic objectives to support government efforts and promote the growth of MSMEs, therefore remaining relevant in the markets where the bank operates. Stanbic Bank has developed a number of new initiatives and financial solutions that are tailored at the MSMEs. The bank remains committed to strong public-private partnerships that contribute positively to the economy of Zambia.

The MOU was signed by PEPZ Programme Manager, Bayo Akindeinde and Stanbic Bank Head of Personal & Business Banking, Mrs Mukwandi Chibesakunda.

“The growth and success of many start-up enterprises is highly dependent upon access to credit, and this is a reality that cannot be escaped. It is no secret that lack of finance is a major hindrance to the development of small businesses the world over. That is why funding from organisations such as Stanbic is critical. Therefore, PEPZ feels the need to assist small-scale businesspeople by linking them to finance organisations while also ensuring a level of confidence for investors in knowing that they are financing well-planned enterprises,” said Mr Akindeinde.

“Stanbic passionately believes that MSMEs are the engine of the Zambian economy. Because of this reality, they require a unique blend of finance and business support services if they are to flourish and spur growth in the national economy. We believe the partnership we have established with PEPZ will make a difference,” said Head of Personal and Business Banking, Mukwandi Chibesakunda.

Stanbic will consider financing MSMEs that are locally owned and managed that meet the Bank’s Enterprise credit criteria.

Under the PEPZ initiative, keen entrepreneurs will benefit from both technical advisory support and grants to establish excellent management systems that will help in building market linkages with their corporate clients. This is expected to steadily expand their enterprises.

PEPZ’s aim is to fortify those market linkages and support entrepreneurs to ensure that they have the capacity to supply the quality products and services. Specifically, PEPZ aims to contribute to the creation of 40,600 full time jobs, 40 percent for women; create K300 million in additional investment; help MSMEs be perceived as drivers of job creation and wealth; and change and improve attitudes towards entrepreneurship.