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AB Bank Zambia Limited
Summary of Proposed Investment

This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only.

Project number 28186
Zambia (IDA)
Sector1Commercial Banking - Microfinance and Small Business
Environmental categoryFI
Date SPI disclosedApril 14, 2010
Projected board dateMay 17, 2010
Previous EventsInvested: January 5, 2011
Signed: July 28, 2010
Approved: June 7, 2010
  Overview     Sponsor/Cost/Location     Development Impact     Contacts     Attachments  

Project description
The project consists of an equity investment and technical assistance funding for the establishment and expansion of AB Bank Zambia (AB Zambia or ABZ). ABZ will be a greenfield microfinance bank sponsored by Access Microfinance Holding AG (AccessHolding), an investment company, and LFS Financial Systems, an associated German consulting firm with recognized expertise in microfinance. The Bank will specialize in providing a broad range of financial services to urban and semi-urban micro, small and medium enterprises as well as low income individuals in Zambia. It is expected that after five years the Bank will have eight branches, a loan portfolio of $50 million, comprising over 25,000 customers. The purpose of the project is to expand crucial financial services to a sector that rarely has access to services offered by formal financial institutions.