IFC Invests in Stanbic Bank to Support SME Growth in Zambia

IFC, a member of the World Bank Group, today announced a 200 million Zambian Kwacha (approximately $15 million) loan to Stanbic Bank Zambia, a wholly owned subsidiary of Standard Bank Group. The investment will help Stanbic Bank expand its lending to small and medium enterprises, with at least 25 percent of the loan earmarked for women-owned businesses in Zambia. 

Zambia’s entrepreneurs have difficulty in accessing the finance they need to grow due to informality in the market, high collateral requirements, and poor bank lending tools, according to a recent study by the World Bank Group. In particular, women-owned enterprises face a financing gap of about $474 million, equivalent to 16 percent of the total SME finance gap funding shortfall (The Global Findex Database, 2017). 

“The funding from IFC is timely and fits with our SME strategy, which is aimed at leveraging our corporate banking ecosystem to identify new SMEs for funding,” said Leina Gabaraane Chief Executive Officer, Stanbic Bank Zambia. “By 2022, we plan to quadruple the number of women-owned SME borrowers from 50 to about 200, representing an outstanding portfolio of 80 million Zambian kwacha, up from 16 million Zambian kwacha.” 

Along with the financing, IFC will help Stanbic Bank enhance its environmental and social risk management system. This includes formulating detailed procedures for identifying, assessing, and managing risks and their impacts during the credit approval and monitoring process. 

“IFC’s partnership with Stanbic Bank Zambia will expand access to finance for the country’s SMEs, enabling them to grow and create jobs,” said IFC Regional Director for Southern Africa, Kevin Njiraini. “The project also marks a new frontier in IFC’s relationship with the Standard Bank Group, and we look forward to future engagement with the group’s other subsidiaries.” 

IFC estimates that SMEs that receive financing through Stanbic Bank’s new line could create close to 3000 local jobs over the next five years. 

Stanbic Bank Zambia is a leader in the Zambian banking sector and has a market share of about 15 percent by total assets and 21 percent by loans. It will leverage its recently launched banking proposition for women, called Anakazi Banking, to attract women-owned enterprises. 

This will be IFC’s second investment with Stanbic Bank Zambia after a $11 million subordinated loan in 2006. 

About Stanbic Bank Zambia 
Stanbic Bank Zambia is a wholly owned subsidiary of Standard Bank Group. The group is listed on the Johannesburg Stock Exchange. The bank operates a network of 13 branches in Zambia and has implemented an expansion program that will see the opening of another two branches in the next 12 months. 

The Standard Bank Group (trading as Stanbic Bank) currently operates in 20 African countries. For more information, visit https://www.stanbicbank.co.zm/ 

About IFC 
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org