FMO and AMZ ink long-term financing agreement
FMO, the Dutch development bank, and Agora Microfinance Zambia Limited (AMZ), part of the Agora Microfinance Group, recently signed a financing facility to expand and consolidate AMZ's work with small holder farmers and rural enterprises in Zambia. The new facility will finance much of AMZ's growth during 2019-2020.
Speaking about the partnership, Jeroen Harteveld, MASSIF Fund Manager of FMO, said that this loan facility in local currency to Agora will contribute further to rural development in the country since AMZ has the deepest rural outreach in Zambia, and it fits the fund’s mandate to promote financial inclusion in underserved regions. Providing local currency is essential to primarily local-currency earning end-clients who may otherwise be subject to currency mismatches. AMZ's strong operational and financial performance in the past two years indicates that the institution is ready for further scaling up.
Tanmay Chetan, Chairman of AMZ said - We are extremely pleased with the partnership, because it carries great potential for our growth and development into a deposit taking institution in the years to come. FMO's confidence in us proves that appropriate financing is available for strong financial institutions in the Zambian market, and we will do our best to leverage FMO's participation to the fullest. The Agora Group views AMZ as its flagship institution in Sub-Saharan Africa and this partnership will be crucial for our future developments.
About FMO: FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Its mission is to empower entrepreneurs to build a better world. FMO invest in sectors where it believes its contribution has the highest long-term impact: financial institutions, energy, and agribusiness. With an investment portfolio of EUR 9.2 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally.
About AMZ: AMZ is a non-deposit taking Zambian microfinance institution that works with 25,000 clients through 10 branches across 3 provinces of the country. AMZ is regulated by the Bank of Zambia under its microfinance regulations. Its primary shareholder is Agora Microfinance N.V.