ZEDF Raises US$25m Funding to Support Non-Traditional Exports

The Zambia Export Development Fund (ZEDF), which is the leading non-traditional export finance entity for Zambian SMEs and firms, has raised US$25 million in third-party funding support from development finance funders, other funders and investors.

The funds raised have increased the fund base from US$4 million to US$29 million, which will enable ZEDF to expand its financing base, increase the loan size and tenor, launch new financing capabilities and provide customers with a broader range of financing products. This is intended to provide affordable finance for SMEs, firms, women and youth.

Prior to this credit line, the Fund primarily depended on seed capital from the European Union (EU), while its operating costs were partly met by the Zambian government and through the Zambian Development Agency (ZDA).

The funding line will support the mission to provide non-traditional exporters with affordable and appropriate finance and make meaningful contribution to the growth of non-traditional exports and job creation. In addition, the Fund will be able to offer both working capital and capital expenditure finance.

According to ZEDF it hopes to leverage the funding to enable more clients to access funding and thereby maximise contribution to national GDP, non-traditional exports and job creation.