ACL secures $15m lines of credit

Tinashe Makichi Business Reporter
African Century Leasing has secured lines of credit worth $15 million aimed at supporting productive sectors of the economy.

The leasing company secured the lines of credit from two international financial institutions, Norsad Finance Limited and Belgium based Incofin Investment Management.

ACL managing director Mr Stanley Matiza last Thursday said the leasing firm’s ultimate goal for this year is to secure lines of credit worth $20 million.

“The Zimbabwean economy has a lot of potential but funding has been the biggest challenge. As ACL we have managed to do our best in terms of securing funding for the productive sectors of the economy especially agriculture.

“We have confirmed lines of credit worth $15 million from Norsad Finance and Incofin Investment Management and our aim is to reach the $20 million target set for the year,” said Mr Matiza.

Norsad Finance Limited is a development finance company established to contribute to the private sector development of Southern African economies by providing funding to enterprises that are financially, socially and environmentally sustainable.

Incofin Investment Management manages and advises funds that invest in micro-finance situations in developing countries.

As a specialist in rural micro-financing, Incofin’s main goal is to reach out to people who live in more secluded rural areas or who are active in the agricultural sector.

Mr Matiza said the company is also talking to Oikocredit, a worldwide co-operative and social investor, providing funding to the micro-finance sector, fair trade organisations, co-operatives and small to medium enterprises.

“We are still in negotiations with Oikocredit, and they are yet to come and conduct a due diligence but we are quite hopeful,” said Mr Matiza.

Last year ACL received a combined $9 million from Geneva-based investment company, Symbiotics Group and Dutch development bank, FMO.

Mr Matiza last year said ACL has keen interest in supporting the agricultural sector given the key role that this sector plays in the country’s economy. He said the leasing industry requires more long-term funding to meet the needs of the local industry.