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GREEN AFRICAN AGRI VALUE CHAIN - FCB ZAMBIA

Signature(s)

Amount
€ 10,000,000
Countries
Sector(s)
Zambia : € 10,000,000
Credit lines : € 10,000,000
Signature date(s)
9/06/2023 : € 10,000,000

Summary sheet

Release date
16 May 2022
Status
Reference
Signed | 09/06/2023
20220385
Project name
Promoter - financial intermediary
GREEN AFRICAN AGRI VALUE CHAIN - FCB ZAMBIA
FIRST CAPITAL BANK ZAMBIA LTD
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 10 million
not applicable
Location
Sector(s)
Description
Objectives

Credit line for First Capital Bank Zambia for on-lending to eligible small and medium-sized enterprises (SMEs) and mid-caps active in agriculture value chains.

Financing of primarily agriculture value chain projects carried out by final beneficiaries including small and medium-sized enterprises.

Additionality and Impact

Access to finance is one of the main market constrains in Zambia, particularly for long term financing. The proposed RSF and the complementary Agriculture Value Chain lending financing bear a longer maturity than typically available in the market. This operation will reduce credit risk for financial intermediaries financing primary and secondary agriculture projects, one of the drivers of the country's economy. The RSF will allow the FI to reduce the commonly very high collateral requirements when lending, mainly to SMEs active in the sector. 

The EIB aims through this operation to generate opportunities to: (i) promote inclusive value chain development by integrating smallholders, increase income, more secure linkages and access to new markets and services (ii) foster green and sustainable agriculture and (iii) embrace digitization in the targeted sector.

The FI and potentially final beneficiaries will further benefit from Technical Assistance focussed on a broad range of capacity building activities. 

The project is under the auspices of the EU's external action plan NDICI and its Investment Framework as well as the African Union's Agenda 2063 and the EU Sub-Saharan Africa Multi-Annual Indicative programme 2021-2027, which supports a stronger regional and continental economic integration.  


Environmental aspects
Procurement

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Related projects
Link to source

Disclaimer

Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

Documents

Environmental and Social Data Sheet (ESDS) - GREEN AFRICAN AGRI VALUE CHAIN - FCB ZAMBIA
Publication Date
16 Jul 2022
Document language
Main Topic
Lending
Document Number
158031539
Document Focus
Environmental Information
Project Number
20220385
Sector(s)
Countries
Publicly available
Download now

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