Supporting the Development Bank of Zambia

Objective

The ICR Facility is providing tailor-made technical assistance to selected Development Finance Institutions. The Development Bank of Zambia chose the topics of the support based on its priorities.

Description

The Development Bank of Zambia is Zambia’s premier Development Finance Institution and aims to provide short long term financing in various sectors for development projects on the Zambian Market. The Bank, in its quest to achieve its mandate, intends to position itself to play a catalytic role in the development of the financial sector in Zambia and to cover markets that are underdeveloped or missing. The Bank intends to execute these through the development of appropriate, targeted market products. DBZ has thus chosen capacity building on a series of financial products and instruments in order to develop its offer for Zambian firms. 14 trainings are planned on a variety of topics, including blended finance, capital market instruments (e.g. social impact bonds) and public private partnerships.

Following the training series, an impact measurement tool was developed for DBZ to assess the impact of projects prior to the funding decision, calibrated to the sectors DBZ is active in.

Result

Building on the trainings, DBZ has taken the following steps:

DBZ is now assessing the expected impact of investments prior to the investment decision.
Set up of a credit risk guarantee scheme, working through commercial banks and microfinance institutions, a female enterprise financing facility as well as an Technical and Advisory Centre that enhances financial efficacy for various market players. These are to ensure that the underserved market are targeted.
The Bank has developed proposals for blended finance instruments targeted to benefit the SME and agriculture sector.
DBZ has set up the Local Authority Financing Facility (as the Bank can now lead discussions with local authorities DBZ investment officers also consider the opportunity to raise municipal bonds, inspired by the trainings on impact finance and derivatives.

Testimonial

It changed my entire outlook towards development impact finance. We are now approaching transactions
differently – more like a DFI.

Chitundu Malunda – Mwape, Investment Officer 'Team Lead Investment Advisory Services' at DBZ, about the Development Impact training

Participants of the Public-Private Partnership training with DBZ

Supporting the Development Bank of Zambia

Objective

Description

Result

Testimonial

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