Fri, 02 Dec 2016 09:24:30 +0000
STANBIC Bank Zambia has launched a business banking service to assist local contractors access long-term funding of up to K500, 000 without tangible collateral, says chief executive officer Charles Mudiwa.
Mr Mudiwa said modern infrastructure was an essential component of economic and social growth which called for substantial capital investment.
He said the new product was therefore designed to address some of the financing challenges faced by contractors and others in obtaining long-term funding.
“The backing of financial institutions in the sector will help create confidence by players in the sector through the provision of competitive and insured financial facilities and services such as guaranteed in the form of bid bonds,” he said.
He said construction of roads and other infrastructure was essential to the progressive development of the country.
And Minister of Infrastructure and Housing, Ronald Chitotela, said there could not be meaningful development without proper infrastructure as trade would be constrained.
Mr Chitotela said Government would concentrate on projects such as roads that were of economic benefit to the country.
He explained that roads would reap economic benefits that would be ploughed back into the maintenance of the same roads to ease pressure on the Treasury.
“Access to long-term financing has always been a challenge for many of our contractors and this has hampered their growth and in most cases stall project works.
“With financial institutions such as Stanbic Bank taking a more active role in the infrastructure sector, it will serve to increase the capacity for most contactors to carry out major projects, thereby creating more investment,” he said.
Meanwhile, National Council for Construction (NCC) director for registration and regulation, Golden Makayi, urged local contractors to take advantage of the Stanbic product.
Engineer Makayi said the new product was an answer to the NCC request for financial institutions to assist local contactors with easy access to finance.
