Zambia has launched a fund with the aim of unlocking the potential of the country’s non-traditional exports, its investment agency said on Thursday.
The Zambia Export Development Fund (ZE-DEF), to run from 2017 to 2021, will be financed by the European Union (EU) at a cost of about $760,000, Zambia Development Agency (ZDA) said in a statement.
According to the ZDA, the fund will provide low cost trade finance to exporters of non-traditional exports.
The country hopes to see stronger performance in such exports as cotton, sugar and coffee.
ZDA also said that the fund will as well increase the volume and value of non-traditional exports to the regional and international markets and boost earnings to 10 percent from the current 0.05 percent.
The fund will target to grow the loan portfolio to 3.8 million U.S. dollars from the current 2.4 million dollars by the end of 2018.
The investment agency intends to put in place stringent credit policy and procedures as well as develop an efficient and effective information management system on the operations of the fund.