Under Component 1 on support to access to markets and finance, Subcomponent 1 (c) the Project provides a Line of Credit (LoC) with an allocation of US$30.0 Million. The LoC provides loans to agribusinesses and Producer Organizations (POs) ranging from $5,000 to $200,000 supported by MarketConnect and firms in the open market with the potential for “upgrading” to increase their bankability. The loans will cover financing in four areas:

1. Upgrading to meet standards requirements;
2. Financing for one-time fixed investment (e.g. equipment) to improve quality and/or productivity;
3. Alternative energy solutions; and
4. Key working capital needs.

The LoC is managed by the Zambia National Commercial Bank (Zanaco) as a fund manager. To ensure access across the ten provinces and 116 districts across the country, Zanaco has engaged Participating Financial Institutions (PFIs) to implement the Line of Credit. These includes ABSA, Stanbic, AgLeaseCo, FNB, Indo Zambia and ZICB. The financing is competitive, and will be made available to firms and POs that meet the eligibility criteria for and the Project. For Firms or POs to participate in MarketConnect, they must have a clear, expressed demand from an off-taker, and a clear action plan for upgrading, which will ultimately lead to growth.