Commerce, Trade and Industry Minister Chipoka Mulenga has officially launched the Line of Credit for the Zambia Agribusiness and Trade Project II (ZATP II).

The Line of Credit will be managed by the Zambia National Commercial Bank (ZANACO) as the Apex Financial Institution (AFI) mandated to recruit Participating Financial Institutions (PFIs) to facilitate   implementation of the facility.

Speaking during the official launch of the  Line of Credit on 17^th March, 2026, at Intercontinental Hotel in  Lusaka, Minister Mulenga thanked the World Bank Group for providing financing for the pilot  and scale-up phase of ZATP II.

In a speech read on his behalf by MCTI Permanent Secretary for Investment and Industrialization Mr. Crusivia Hichikumba, Minister Mulenga said the World Bank Group provided financing for the first phase of ZATP worth US$40 Million which has been increased to US$170 Million for the second phase.

He said out of the US$170 Million financing for the second phase which covers all the ten provinces of Zambia, a total of US$30 million has been ring fenced for the Line of Credit out of which  US$3 Million has been set aside for Technical Support and Capacity Building.

Minister Mulenga said the financing is available to unlock the potential of Producer Organizations (POs), agribusiness firms and agro-processors that hopes to acquire investment equipment for value addition, agro-processing to increase productivity. 

“The Line of Credit will provide affordable financing with reduced interest rates which will be capped below the prevailing interest rates on the capital market”, he said.

At the same occasion, World Bank Group Zambia Country Manager Achim Fock said the bank’s engagement with the Government of Zambia through ZATP II reflects a shared commitment to inclusive growth, economic diversification and private sector-led development.

Mr. Fock said the launch of the Line of Credit marks an important milestone in strengthening agribusiness financing and supporting Zambia’s economic transformation adding that the facility targets to benefit approximately 350 Small and Medium Enterprises (SMEs).

“Through MarketConnect, Business Development Services targets 3,150 beneficiaries, 1,750 growth-oriented agribusinesses and 1,400 Producer Organizations. ZATP II is expected to benefit approximately 133,500 and create 12,550 full-time equivalent jobs”, he said.

Mr. Fock congratulated the Zambia Industrial Commercial Bank (ZICB) for taking the lead in signing up with ZANACO as a Participating Financial Institution (PFI)  while appealing to other Financial Institutions to come on board.

ZANACO Acting Managing Director Vincent Chuunga expressed gratitude to Financial Institutions that responded to the call to participate in the implementation of the ZATP II Line of Credit.

Mr. Chuunga said Zanaco has committed a total of US$8.1 Million of its own resources to the Line of Credit bringing the total credit line to US$35.1 Million adding that Participating Financial Institutions will be essential to the successful implementation of the Line of Credit.

“Together we will extend credit to places where traditional financing often does not reach and we will ensure that rural communities and agribusinesses whether small, emerging or established have access to the finance they need to grow”, he said.

And ZICB Chief Executive Officer Ngenda Nyambe said access to affordable and appropriate finance remains one of the barriers for unlocking agricultural productivity.

In a speech read on his behalf by the of Head Agribusiness Banking Edwin Mulenga, Mr, Ngenda said without capital for inputs, equipment, irrigation systems and expansion, farmers  and agribusinesses cannot realise their potential.

He said his bank looks forward to a successful partnership based on shared success for Zambia’s agribusiness sector.

Speaking earlier during a Presentation, ZATP II Project Manager Engineer Golden Makayi said the Line of Credit and the Matching Grant Facility are the two major financing instruments under ZATP II’s  Component 1 which supports access to Markets and Finance.

Giving an update on implementation progress, Engineer Makayi said applicants under the first Call for Matching Grant Proposals were at Business Proposal development stage while the second Call for Proposals is running up 31^st March 2026.