First Alliance Bank, ZCGS partner to boost SME financing

FIRST Alliance Bank Zambia (FAB) and the Zambia Credit Guarantee Scheme (ZCGS) have signed a Memorandum of Understanding (MoU) aimed at improving access to finance for Small and Medium Enterprises (SMEs), a sector considered vital to the country’s economic growth.
Speaking during the signing ceremony in Lusaka yesterday, FAB Chief Executive Officer Dr. Kuldip Paliwal said the partnership marked a significant step towards bridging the credit gap that has long constrained SMEs.
“Since inception, ZCGS has built a strong ecosystem of trust and collaboration among banks, Government and the private sector. Together, we will support entrepreneurs to thrive,” Dr. Paliwal said.
He noted that SMEs contribute over 70 percent to the country’s GDP and account for about 80 percent of employment, underlining their critical role in job creation, innovation and community development.
Dr. Paliwal highlighted FAB’s transformation into a technology-driven, customer-centric bank focused on financial inclusion. He said the partnership aligned with the bank’s five-year strategy, which prioritises SME growth and support for women-led businesses and youth entrepreneurs.
“This collaboration allows us to plant seeds of opportunity and nurture a harvest of dignity, growth, and shared prosperity,” he said.
ZCGS Chief Executive Officer Mary Mumba welcomed the MoU, describing it as a reflection of a shared vision to enhance MSME financing in the country.
“This agreement is not just symbolic; it is a real commitment to removing barriers to affordable credit. ZCGS was established to bridge financing gaps by reducing credit risk, allowing banks to lend more confidently to small businesses,” Ms Mumba said.
She said the partnership would enable SMEs especially those lacking collateral or credit history to invest, grow and create jobs.
She also noted the broader economic benefits of the collaboration, including poverty reduction, increased innovation, and improved competitiveness.
“This is a long-term partnership focused on sustainability. We will continue monitoring and supporting its implementation to ensure lasting impact,” Ms Mumba added.
Both parties expressed confidence that the partnership would deliver tangible results and support the country’s goal of building a resilient and inclusive economy