Lusaka, Zambia July 15, 2019— IFC,
a member of the World Bank Group, today announced a 200 million Zambian
Kwacha (approximately $15 million) loan to Stanbic Bank Zambia, a wholly
owned subsidiary of Standard Bank Group. The investment will help Stanbic
Bank expand its lending to small and medium enterprises, with at least
25 percent of the loan earmarked for women-owned businesses in Zambia.
Zambia’s entrepreneurs have difficulty in
accessing the finance they need to grow due to informality in the market,
high collateral requirements, and poor bank lending tools, according to
recent study by the World Bank
Group. In particular, women-owned enterprises face a financing gap of about
$474 million, equivalent to 16 percent of the total SME finance gap funding
shortfall (The Global Findex Database, 2017).
“The funding from IFC is timely and fits
with our SME strategy, which is aimed at leveraging our corporate banking
ecosystem to identify new SMEs for funding,” said Leina Gabaraane Chief
Executive Officer, Stanbic Bank Zambia. “By 2022, we plan to quadruple
the number of women-owned SME borrowers from 50 to about 200, representing
an outstanding portfolio of 80 million Zambian kwacha, up from 16 million
Along with the financing, IFC will help Stanbic
Bank enhance its environmental and social risk management system. This
includes formulating detailed procedures for identifying, assessing, and
managing risks and their impacts during the credit approval and monitoring
“IFC’s partnership with Stanbic Bank Zambia
will expand access to finance for the country’s SMEs, enabling them to
grow and create jobs,” said IFC Regional Director for Southern Africa,
Kevin Njiraini. “The project also marks a new frontier in IFC’s relationship
with the Standard Bank Group, and we look forward to future engagement
with the group’s other subsidiaries.”
IFC estimates that SMEs that receive financing
through Stanbic Bank’s new line could create close to 3000 local jobs
over the next five years.
Stanbic Bank Zambia is a leader in the Zambian
banking sector and has a market share of about 15 percent by total assets
and 21 percent by loans. It will leverage its recently launched banking
proposition for women, called Anakazi Banking, to attract women-owned
This will be IFC’s second investment with
Stanbic Bank Zambia after a $11 million subordinated loan in 2006.
About Stanbic Bank Zambia
Stanbic Bank Zambia is a wholly owned subsidiary
of Standard Bank Group. The group is listed on the Johannesburg Stock Exchange.
The bank operates a network of 13 branches in Zambia and has implemented
an expansion program that will see the opening of another two branches
in the next 12 months.
The Standard Bank Group (trading as Stanbic
Bank) currently operates in 20 African countries. For more information,
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In fiscal year 2018, we delivered more than $23 billion in long-term financing
for developing countries, leveraging the power of the private sector to
end extreme poverty and boost shared prosperity. For more information,