ZDA Secures $29 Million to Help Zambian Exporters
The Zambian Development Agency has secured a total of US$29 million from development financiers for its Zambian Export Development Fund (ZEDF).
The Fund, created in 2007, is intended to support non-traditional Zambian companies, help small and medium enterprises (SMEs) export their products or services to other countries, and support women and youth empowerment.
The ZEDF provides working capital to Zambian companies for a 12-month tenure, with the possibility of two rollovers, subject to performance. The new funding line includes project-specific finance with a repayment period of three to five years.
ZEDF also offers advisory services related to exports and other activities, including supporting capacity building, market development, and market access. According to the ZDA, ZEDF “seeks to be the go-to trade finance solutions provider for current and future non-traditional exporters.”
Eligible businesses for the Export Development Fund should be export-ready in non-traditional exports. Businesses must be majority Zambian-owned, ensuring the fund is utilised by enterprises committed to contributing to the Zambian export industry.
To access the EDF, applicants must:
Be a registered business.
Have verifiable off-takers.
Support women and youth empowerment.
Show evidence of profitability, jobs and foreign exchange earnings.
Have a minimum annual turnover of K450,000.
An ability to fund a 25% required co-contribution.
Once successful, applicants will receive the loan funds, which can be used for various export-related activities, including product sales, product development, marketing, and expanding export capacity.