1 Application Guidelines

All applications for facilities should be in writing covering and carrying the following information and documents:

 1.1    Background information on the applicant to include:

  • Company name and ownership details supported by documentation viz; certified copies of Articles of Association, Certificate of Incorporation and Certificate of shares
  • Names of shareholders, Directors and their CVs
  • Share capital indicating nominal and paid-up capital
  • Full description of the business activities
  • History of the company highlighting major developments, product mix and other relevant information
  • Indicate associate or subsidiary companies with details of shareholding, type of business, number of employees and audited accounts for the last three years

 1.2    Know Your Customer (KYC):

Submission of Know Your Customer (KYC) formalities / documents with the Bank namely:

  • Duly certified copies of the promoters’ valid identity documents viz; Passport/NRC
  • Proof of residence to include any of the following; Duly certified copies of their respective latest utility bills, Tenancy agreements, Title deed (supported by an affidavit), etc
  • Four certified true likeness of passport size photos each Employment, residential or other such permits where applicable and personal bank statements for shareholders and directors for the last 6 months

Completion of Bank KYC forms to be done before preliminary appraisal committee meeting.

1.3      Requested facility to include:

  • Amount (state currency)
  • Type of facility
  • Purpose, grace period and tenor
  • Draw-down and repayment plan

1.4     Key Industry information to include:

  • Key industry players, their market share and assessment of own performance and standing compared to competitors.
  • Competitive advantage vis-à-vis other players highlighting details of critical success factors
  • Company’s market size and share
  • Business trade cycle

1.5     Key Project information to include:

  • Location of project and a description of infrastructure in place or required for the implementation of the project
  • Nature of product or service provided including the whole production process
  • Technical information may be required depending on the project
  • Type of raw materials required and sources for production enterprises
  • Detailed project implementation plan
  • List of major buyers and suppliers and the terms of trade. Indicate contact persons and their contact numbers or emails
  • Key risks and how they are mitigated
  • Marketing strategy
  • Regulatory and Compliance documentation

  1.6    Management and employees’ information:

  • Management structure
  • Key personnel, their qualifications and experience
  • Gender segregated data on direct and indirect employees
  • Additional number of employees after implementation
  • Compliance with Occupational Health and Safety Regulations

 1.7     Financial information to include:

  • Audited financial statements for the last 3 years; where applicable
  • Latest Management accounts; where applicable
  • Your latest Returns to Zambia Revenue Authority (ZRA) and Tax clearance for the current financial year
  • Returns from NAPSA and Workers Compensation Fund
  • Detailed Project cost break down and proposed means of financing. Attach quotations for all items to be purchased, Bill of Quantities for construction and details of contractors
  • Budgets (Income Statement, Cash Flow and Balance Sheet projections) and underlying assumptions for the duration of the loan
  • Latest breakdown of Debtors and Creditors, with age analysis where applicable

Explanations should be given for any material negative or positive variances in the trading and financial information.

1.8     Security being offered for the facility:

  • Indicate type inter alia; Cash, Guarantees, Movable or Immovable Property
  • If property, valuation reports from credible valuers will be required up front.
  • Security margin should be at least 1.25 times of the value of the loan amount after discounting Certified copies of Title Deeds
  • Latest Print outs from PACRA and Ministry of Lands
  • Proof of payments towards the property Ground Rent and Rates

1.9     Equity Contribution:

Promoters should provide proof of equity contribution of at least 30% for expansion projects and 60% for new (start-up) projects. The promoter’s equity contribution should be injected into the project before any disbursement can be effected by the Bank.

1.10   Present bankers:

Full details to be provided on the following:

  • Name of bankers, contact details and persons
  • Details and status reports of credit facilities obtained from other Financial

Institutions; if any

  • Security given where relevant
  • Copies of bank statements for last 12 months for expansion projects

1.11     Environmental Impact Assessment (EIA):

Projects are required by law under the Environmental Impact regulations of the Zambia Environmental Management Agency (ZEMA) to comply with the national law. Every company must check with ZEMA if it is required to submit an Environmental Impact Assessment Brief (EIAB) or a full-fledged EIA study. The EIA and ZEMA approval are required by the Bank as part of its internal due diligence on applicants.

1.12       Developmental and Social Impact of the undertaking:

Highlight any economic and social benefits of the project