ZCGS and FAB Officially Sign Strategic Partnership to Boost SME Financing
The Zambia Credit Guarantee Scheme (ZCGS) and First Alliance Bank (FAB) have officially signed a partnership agreement to enhance access to finance for Micro, Small, and Medium Enterprises (MSMEs) across the country.
The signing ceremony, held at FAB’s Head Office in Lusaka, brought together key stakeholders from the government, financial institutions, MSME support agencies, and members of the media. The agreement is a significant step toward improving financial inclusion for underserved businesses, particularly those lacking traditional collateral.
ZCGS Chief Executive Officer Ms. Mary Mumba said the partnership aligns with the Scheme’s mandate to de-risk lending to SMEs and promote economic empowerment.
“This occasion is more than a formal agreement; it is a demonstration of our shared vision to strengthen Zambia’s SME sector and broaden access to financial solutions that drive inclusive economic growth,” said Ms. Mumba.
Dr. Kuldip Paliwal, Managing Director and CEO of First Alliance Bank, emphasized the economic importance of SMEs, noting that they contribute approximately 70% to Zambia’s GDP and account for 80% of employment.
“This partnership tears down the financial barriers entrepreneurs face. Together, we will empower SMEs, especially women and youth, by enabling access to the capital they need to thrive,” said Dr. Paliwal.
Through this partnership, ZCGS will provide credit guarantees that reduce risk for First Alliance Bank, allowing it to offer financing to a broader base of SMEs, including startups and informal businesses with limited assets.
The collaboration is built on shared values—FAB’s commitment to innovative and inclusive banking, and ZCGS’s goal of expanding the reach of credit through risk-sharing mechanisms. FAB’s digital-first approach has already gained recognition, earning it the “Most Innovative Bank for Small Businesses Payment Solutions of the Year” award at the Africa Bank 4.0 Awards in 2023. Notably, its FAB mPOS device has enabled seamless, portable transactions for entrepreneurs across Zambia.
The partnership is expected to drive job creation, innovation, and increased competitiveness in the SME sector, ultimately contributing to Zambia’s broader development agenda. Both institutions have reiterated their commitment to building a resilient and inclusive financial ecosystem.
The event concluded with a call to action for other financial players to explore similar partnerships aimed at unlocking the full potential of Zambia’s SME sector.
