P-ZM-B00-011

Project Details
ID: P-ZM-B00-011 Name: SMALL - MEDIUM-SCALE ENT. DEVELOPMENT Status: Closed Country: Zambia
Sector: Ind/Mini/Quar Approval date: 23-sep-1991 Task Manager: ASSEFAW Mecuria, PISD2
Total cost: 19210000
Currency: UAC
Source(s) of financing
ADF: 1
Implementing Agency: DEVELOPMENT BANK OF ZAMBIA

Objectives

The objective of the line of credit is to provide resources for financing the foreign exchange components of export-orientedenterprises in support of the Government's efforts at export expansion and private sector development. The loan proceeds are to be utilized in procuring capital goods and services needed to establish, expand or rehabilitate these enterprises.

Description

The project comprises ADB and ADF loans for financing small and medium-scale enterprises in the productive sectors of the Zambian economy. The loan is to provide resources for financing the foreign exchange components of export-oriented enterprises in support of the Government's efforts at export expansion and private sector development. The loan proceeds is to be utilized in procuring capital goods and services needed to establish, expand or rehabilitate these enterprises. 27% of the ADF loans was to be used by GRZ for boosting the capital base of DBZ

Benefits

Creating of employment and earning/saving foreign exchange.

Rational

The line of credit is to provide DBZ with foreign exchange resources to enable it provide term lending and other developmental services to private investors in the productive sectors of the economy. About 30-40 sub-projects are expected to be funded under the line of credit. Though the majority of the projects will involve rehabilitation, modernization or expansion of export-oriented enterprises, a number of new resource based and eport oriented projects will also be financed.