IFC Invests in Zambian Discount House
WASHINGTON, D.C., May 28—The International Finance Corporation (IFC) today signed an agreement with Intermarket Discount House of Zambia Limited (IMDHZ) for an equity investment of US$500,000.
IMDHZ, Zambia's only discount house, acts as an inter-bank intermediary for short-term securities. IMDHZ manages liquidity within the financial sector and provides short-term finance to all local financial institutions. Its services also include the launching and management of money market funds and other asset management activities.
"IFC's investment in IMDHZ will support the growth of a specialized financial institution that is contributing to the development of Zambia's financial sector, an important component of sustainable, private sector-led economic growth," said Mr. Bahadurali Jetha, Manager, Capital Markets Division, IFC's Sub-Saharan Africa Department.
Commenting after the signing ceremony, Mr. Gibson Muringai, Managing Director of IMDHZ added, "IFC's financing will help us reach our medium- to long-term goal which is to develop securities such as bankers' acceptances and negotiable certificates of deposit."
Present at the signing ceremony in Lusaka were Mr. Jetha; Mr. Nicholas Vingirai, Chairman of IMDHZ; Mr. Gibson Muringai; Mr. Mengistu Alemayehu, Investment Officer in IFC's Sub-Saharan Africa Department; and other government and private sector representatives.
IFC to Finance Zambian Commercial Bank
WASHINGTON, D.C., May 28—IFC today signed an investment agreement with Finance Bank Zambia Limited for a loan of up to US$5 million. Finance Bank will use the IFC credit line to on-lend to export-oriented local entrepreneurs.
"Zambia's export-oriented enterprises are in need of foreign currency denominated financing with medium term maturities to undertake expansion and equipment replacement projects," said Mr. Bahadurali Jetha, Manager, Capital Markets Division, IFC's Sub-Saharan Africa Department. "Not only will IFC's financing help Finance Bank better serve Zambia's business community, but it will also strengthen the Bank's project finance capabilities."
Present at the signing ceremony in Lusaka were Mr. Jetha; Dr. Rajan Mahtani, Chairman of Finance Bank Zambia; Mr. Mohammed Wadood, Managing Director of Finance Bank Zambia; Mr. Mengistu Alemayehu, Investment Officer in IFC's Sub-Saharan Africa Department; and other government and private sector representatives.
Finance Bank Zambia, the largest locally owned private bank in Zambia, was established in 1986 and has 36 branches located throughout the country. It provides a range of banking services including trade and corporate finance services.
To date, IFC has invested over US$12 million for five projects in Zambia and has provided advisory assistance for the establishment of the Lusaka Stock Exchange. IFC intends to continue to assist the country in the development of its private sector through investments and advisory services in the areas of agribusiness, tourism, financial services, small business and mining.
IFC, a member of the World Bank Group, is the largest multilateral source of equity and loan financing for private sector projects in developing countries.
