Ebene/Lusaka, 25 April 2023 – The Trade and Development Fund (TDF), a member of the Eastern and Southern African Trade and Development Bank Group (TDB Group), is extending a USD 2 million facility to Pangaea ADD Capital Limited (PADDC) to finance small and medium-sized enterprises (SMEs) supplying the mining and agribusiness sectors in Zambia. The facility is blended with a USD 30,000 technical assistance grant to support the capacity-building requirements of PADDC.
PADDC is a financial institution specialized in supply chain finance providing invoice discounting, order financing and trade finance for SMEs that are critical in the mining and agribusiness value chains. Supporting the sustainable growth of Zambian SMEs – as top employers and key GDP contributors – contributes to boosting economic growth and job creation, while improving the business environment and competitiveness of targeted sectors.
This facility – TDF’s first in Zambia – aligns with its strategy to provide financing to groups traditionally excluded from mainstream economic activity, such as MSMEs, women and youth, as well as to promote local content in supply chains. It also complements TDB Group’s activities in the agribusiness and mining industries in the region, through which the Group is financing projects and transactions which contribute to enhancing food security and availability of critical inputs, supporting exporting businesses and availability of forex, and boosting the supply of metals essential to the energy transition, among others.
Gloria Mamba, Group Executive and Executive Director TDF Business said: “It has been TDF’s strategy to partner with local financial institutions which can effectively intermediate our capital and on-lend to productive and impactful SMEs in our region. As such, we are very pleased to extend this facility – our first of its kind in Zambia – to PADDC, a woman-led business with a strong track record enhancing local participation in critical national, regional and global value chains.”
Diana Kabaila- CEO PADDC said: “As you all know, small and medium enterprises (SMEs) are the backbone of any economy. They create jobs, drive innovation, and contribute to the overall growth of a nation. In Zambia, SMEs account for over 80% of all businesses and employ over 60% of our workforce. It is clear that a credit line like this one supporting SMEs is crucial to the nation’s economic success.”
Through this facility, PADDC will be able to serve between 50 to 100 more SMEs in the first year of the loan and broaden its service to SMEs, including more female-led businesses and those that employ youths, which are still often face challenges accessing traditional finance.
About TDF
TDF is a member of TDB Group. TDF’s mandate is to deliver intentional, sustainable, and measurable impact to its stakeholders and the wide range of beneficiaries it aims to reach in the region. To do this, TDF provides programme management services, blended finance, technical assistance grants and capacity building services to expand the reach of the TDB Group by allowing many more citizens to participate in the formal financial structures in the region.
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is a regional development finance institution, with investment grade ratings and assets of USD 8.4 bn. TDB serves 25 member states in its region, with the mandate to finance and foster trade, regional economic integration, and sustainable development, through trade finance, project and infrastructure finance and asset management.
TDB Group, comprises TDB, the Trade and Development Fund (TDF), Eastern and Southern African Trade Advisers Limited (ESATAL), TDB Captive Insurance Company (TCI), and the TDB Academy.
www.tdbgroup.org
About Pangaea ADD Capital Limited
Pangaea ADD Capital Limited (“PADDC” or the “Company”) is a Zambian financial institution that specializes in providing supply chain financing solutions to businesses, with a particular focus on the mining sector. By addressing the working capital challenges faced by businesses in Zambia, PADDC has managed to present itself as a trusted partner to numerous local and multinational corporations that wish to ease the cash flow cycle of their supply chain partners.
PADDC is dedicated to promoting economic growth and development in Zambia and sees its role as more than just a financial institution. The Company strives to create long-term partnerships with its clients, providing financing solutions, advisory services, and other resources to help businesses succeed. With a strong track record of success and a commitment to innovation and excellence, PADDC is well-positioned to continue its growth and impact in the years to come.
Media Contacts
Anne-Marie Iskandar, Senior Communications Officer
Corporate Affairs and Investor Relations
Trade and Development Bank
Anne-Marie.Iskandar@tdbgroup.org
Moses Musonda, Operations and Credit Manager
Pangaea ADD Capital
moses@pangaeaaddcapital.co.zm
