Tuesday 26 September 2023
- First Capital Bank and the European Investment Bank in a partnership for a Euro 10million facility
- Developmental line of credit is set up to enhance the agriculture sector in Zambia via SMEs
- Partnership will see First Capital Bank on-lend to SME customers in the agriculture sector.
First Capital Bank Limited in partnership with the European Investment Bank and the European Union have today secured a developmental line of credit of Euro10 Million. This credit line is part of the Partnership Agreement between the European Union and its Member States, of the one part, and Members of the Organisation of African, Caribbean and Pacific States, to make Credit available that is extended by the European Investment Bank to a group of financial institutions located in Zambia.
This funding opportunity aims to accelerate economic growth in the agriculture sector in Zambia through the provisioning of finance for projects promoted by Small and Medium Enterprises in Zambia through First Capital Bank. The key objective of this strategic alliance is to address the existing financing gaps within the agricultural segment and raise the production profile directly benefiting food security of the country.
Speaking on the official signing ceremony of this new line of credit, FMBcapital Holdings’ (Holding company of First Capital Bank) Group Chief Executive Officer, Mr. Jaco Viljoen said: “We are excited to be launching this credit line in Zambia. It is the third country where we leverage the relationship between First Capital Bank and the European Investment Bank to contribute to the development of SMEs in the agricultural segment. He added that “this initiative is in line with the Bank’s value of Citizenship, where we are mindful of the community we serve and how we can play a role to improve it”.
First Capital Bank Limited believes in mutually beneficial partnerships to support its customers and speaking on the credit facility, the acting Managing Director Shashank Mehta said; “Our goal is to attain incremental growth across our business where the impact has far-reaching positive effects within the broader economy and communities that we serve”. He added that: “To demonstrate our commitment to the success of this project, Mr. Andre Potgieter, the Group Head of Agriculture and Corporate Banking will now be based in Zambia and lend his expertise to this partnership”.
The European Investment Bank provides finance and expertise for sound and sustainable investment projects in Zambia and is committed to ensuring that Zambian agricultural entrepreneurs can invest through new cooperation with local financial partners. “As part of Team Europe, the European Investment Bank is pleased to provide Euro10 million of targeted financing to First Capital Bank Limited to accelerate private sector investment in agriculture, create jobs and aid the post-pandemic recovery and food security of Zambia” said Mr. Thomas Oestros, the Vice President of the European Investment Bank.
Through the Zambia Agriculture Value Chain Facility, a joint initiative launched by the EIB and the European Commission, we improve access to suitable finance in the country, mainly to small and medium-sized enterprises (SMEs) active along the agriculture and aquaculture value chains. These projects illustrate the close cooperation and longstanding relationship fostered with the government of Zambia, local stakeholders, and the European Union.
The bank is appreciative of strategic alliances such as this as they enable them to realise their overall organisational purpose which is to enable people to achieve their extraordinary in their areas of expertise. Funding is an essential element for all business growth and as such the bank shall continue to cultivate relationships provide relevant opportunities.
About the European Investment Bank
- The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment to contribute towards EU policy goals.
- EIB Global is the EIB Group’s new specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies, and institutions through our offices across the world.
For more information on the EIB visit: htpps://eib.org
About First Capital Bank
- First Capital Bank Zambia is a part of FMBcapital Holdings PLC, which has banking operations in Botswana, Malawi, Mozambique, Zambia, and Zimbabwe. First Capital Bank offers a comprehensive range of corporate, commercial, and retail banking services.
- First Capital Bank Zambia is third to receive this funding from EIB following First Capital Bank Malawi and First Capital Bank Zimbabwe.
For more information on First Capital Bank Zambia visit: https://firstcapitalbank.co.zm
About FMBcapital Holdings
FMBcapital Holdings Plc provides banking and finance solutions through its operating subsidiaries in five Southern African Development Community (SADC) markets – Botswana, Malawi, Mozambique, Zambia, and Zimbabwe, with an Information Technology and Operations Shared Service Centre in Mauritius. The Group has a total asset base of over US$1.5 billion, employs over 1,900 staff and services the financial needs of customers across Africa.
For more information on FMBcapital Holdings Plc visit: https://fmbcapitalgroup.com/
First Capital Bank Zambia FMBcapital Holdings Plc
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