Download Zanaco, Zambia

ZAMBIA, FINANCIAL INSTITUTIONS
Banking services
for all Zambians
SUPPORTING THE GROWTH OF ZAMBIA’S LEADING BANK
COMPANY
Zanaco - Zambia National
Commercial Bank PLC
SECTOR
Financial Institutions
FMO INVESTMENT
USD 52.5 mln debt
“FMO WAS THE FIRST
INTERNATIONAL
FINANCIER SUPPORTING
ZANACO IN ITS GROWTH
STRATEGY TO BANK THE
UNBANKED“
Martyn Schouten, CEO Zanaco
With the largest distribution network
in the country, Zanaco -the ‘People’s
Bank’- is Zambia’s leading bank bringing
financial services to over 800,000
customers in 90 of the 102 districts.
Through its financing, FMO supports
Zanaco’s growth strategy. The Zambian
bank focuses on increasing the access
to financial services for the unbanked,
growing its agricultural client base and
developing the Small and Medium-sized
Enterprise (SME) market.
UNDERDEVELOPED FINANCIAL SECTOR
With a population of 14 million and GDP per
capita of USD 1,400 Zambia is a relatively
stable African economy with a positive
economic outlook. Yet, development of the
financial sector remains low, and with credit
to GDP ratio of a mere 10-15%, it is even
lagging behind Sub-Saharan Africa standards.
At the time of financing, 80% of the population was unbanked, the availability of credit
was low, and interest rates high; hampering
private sector development. This created a
growth opportunity for a solid bank. In part
due to Zanaco’s contribution, by 2014 the
level of unbanked people was already reduced
to 66%.
COUNTRY: ZAMBIA
SEIZING OPPORTUNITIES
Zanaco was established in 1969 to service the financial needs
of the Zambian economy and has since evolved into a leading
bank nationwide. Founded as a state-owned bank, it was
privatized when Rabobank Financial Institutions Development
acquired 49% in 2007 of which 3.4% was onsold to a nominee
of Zambia National Farmers Union. Local investors obtained a
further 25% in a successful IPO in 2008. This provided Zanaco
with the opportunity to transform itself into a universal bank
by providing a wide variety of financial services, whilst leveraging its historically strong position as the People’s Bank.
Supported by successful innovations in the field of financial
inclusion, such as XAPIT mobile banking, instant account
opening and an agent banking model, Zanaco is able to cover
90 of Zambia’s 102 districts and reached 800 new customers
per day at the time of the financing. As many of their
customers are first-time users of the formal banking system,
Zanaco has a “Financial Fitness” training program in place
under which the financial literacy of 34,275 people has been
improved.
AGRICULTURE AND SMEs
Zanaco is a universal bank and its customers are fully
representative of Zambia as a whole, with a strategic focus
on agriculture and SMEs. As a leader in food and agriculture
finance, Zanaco serves the whole value chain. Their top clients
are large professional farms and producers, generating
employment and contributing to efficient and reliable food
security for Zambians. At the base of the pyramid they reach
small scale and emergent farmers, supported by their co30
operation with the Zambia National Farmers Union. In
25
addition, Zanaco is growing its SME segment by ensuring
20 access to finance.
entrepreneurs have correct training and
COMPANY
FMO INVESTMENT
NAME
Zanaco - Zambia National
Commercial Bank PLC
SECTOR
Financial Services
TOTAL ASSETS*
USD 1.040 bln
INVESTMENT AMOUNT
USD 52.5 mln
NUMBER OF LOANS
3
YEARS OF INVESTMENT
2008, 2009, 2011
PRODUCT
Senior Loans
*as per 2014
IMPACT AND PERFORMANCE
Reaching 800,000 customers
across Zambia
Universal banking strategy
with a specific focus on SMEs
and Food & Agriculture.
15
By providing finance to financially solid
10 and responsible local
banks, FMO supports the growth of the
5 local financial sector.
The banking sector is the engine of private sector develop0
ment. FMO provides senior loans to be used for on-lending to
Zambian enterprises.
Loan portfolio (USD mln)
30
600
500
25
400
20
300
15250
200
10
100
5
empower entrepreneurs to build a better world. We invest in sectors where we believe
and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and
www.fmo.nl
600
500
400
300
600
392
26%
22%
23% 24% 24% 24%
2009 2010 2011 2012 2013 2014
Exchange rate as at 31st December 2014 was ZMW 6.410
our contribution can have the highest long-term impact: financial institutions, energy
23% 24%
490
2009 2010 2011 2012 2013 2014
developing countries and emerging markets for more than 45 years. Our mission is to
22%
FMO is one of the larger bilateral private
20%sector development banks globally.
361
541
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FMO is the Dutch development bank. FMO has invested
in the private sector in
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services sectors. With an investment portfolio of EUR
8 billion spanning over 85 countries,
26%
510
Return on Equity
200
30