NATSAVE Bank has signed a Memorandum of Understanding with the Zambia Credit Guarantee Scheme (ZCGS) aimed at increasing access to financing for viable SMEs.

NATSAVE CEO Malcolm Chabala reiterated that the Bank will provide the credit facility to eligible MSMEs and SMEs aimed at stimulating economic growth in Zambia.

The CEO said the MOU will benefit Zambians as they will be accessing lower financing costs for MSMEs resulting in cheaper sources of funding that will lengthen maturity and increase loan size.

Mr. Chabala said the MOU was prompted by the challenges faced by SMEs in accessing financing due to their inability to meet the collateral requirements set by banks.

Mr. Chabala further expressed the bank's delight in supporting the government's vision of empowering Zambians through the delivery of financial inclusion without discrimination.

Meanwhile, Minister of Finance and National Planning Situmbeko Musokotwane said SMEs play a key role in stimulating economic growth as they represent 90% of all business in the country and are the largest employer.

The Minister further said the government is aware of the challenges SMEs face and hence the increased fund allocation to the Zambia credit guarantee scheme.

Furthermore, ZCGS CEO Mary Mumba said the partnership is aimed at strengthening the development of MSME credit portfolio, which will culminate in increased financing by the MSMEs at affordable rates.

The CEO urged other institutions to partner with ZCGS to reach many MSMEs, which will in return create more opportunities for market linkages and access to business development services.