IFC, a member of the World Bank Group, has invested $25m in First National Bank Zambia to increase access to finance for small and medium-sized businesses and the agriculture sector in support of inclusive economic growth.

FNB Zambia is a wholly owned subsidiary of First Rand Group South Africa and started operating in 2009.

It has 21 points-of-presence around the country, 770 staff and about 190,000 clients.

The IFC loan will enhance FNB Zambia’s capacity to significantly increase its lending to SMEs and export-oriented agribusinesses, in support of the bank’s strategy to become the country’s leading bank for SMEs and the agribusiness sector.

Johan Maree, CEO of FNB Zambia, said: “We are excited that this facility will further support our focus on the SME and agriculture sectors that are key in addressing the country’s challenges of poverty and unemployment.”

“As FNB Zambia, we are committed to supporting our customers achieve their aspirations and to playing a leading role in support of Zambia’s development agenda through provision of innovative products and services that support the growth of local businesses and help to create a better world,” he said.

Half of Zambia’s population of 15 million live in rural areas, where formal employment is scarce and poverty is high.

One of the main constraints on economic growth is the lack of finance for small-scale businesses, with 28% of Zambian firms citing a lack of credit as their top operational constraint, according to the 2013 Zambia Enterprise Survey.

Oumar Seydi, Director, Sub-Saharan Africa, said: “By supporting the small business sector and agricultural sector, our support to FNB Zambia will contribute to the country’s efforts to improve its resilience and diversify the economy, which is especially important in economically challenging times.”