DBZ III

closed

Closed

The objectives of the Third Development Bank of Zambia Project will be to finance the rehabilitation, modernization, balancing of equipment, and creation of new or additional production capacity in manufacturing enterprises that meet the criteria for priority allocation of imports and will be export oriented. The line of credit will also finance: (i) projects in commercial agriculture, as these contribute to expanding the food supply of the country and use mainly domestic inputs; (ii) tourism development projects that are likely to be foreign exchange earners; and (iii) transport projects that will help solve the country's bottlenecks in that sector. Furthermore the project will provide resources to manufacturing enterprises that are clients to the Development Bank of Zambia so that they can obtain the imported raw materials and spare parts they need to operate at least at break-even capacity utilization. This financing will be reserved to companies which, on the basis of their capacity to earn or to save foreign exchange, are considered priority. Through this project, the Government aims to help productive ente to expand, modernize or rehabilitate their existing capacity or to est new productive facilities. It will furthermore help the Development Zambia (DBZ) to improve its performance and its ability to mobilize re through (i) a major capital increase; (ii) the upgrading of the qualit DBZ's portfolio, and (iii) increasing the efficiency of financial and management decision-making by establishing a management information sy (MIS) and training DBZ staff in its use. The proposed IDA credit of U million equivalent consists of a credit component which will provide resources to DBZ to finance the long-term foreign exchange requirement planned investment financing activities over a three-year period withi five-year program. A technical assistance component is included which provide DBZ with resources to train its staff, computerize its account financial management procedures and establish a MIS.

World Bank Group

Project

Rail, Manufacturing (Industrial), Hotel, Commercial, Raw Materials, Government