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Equity Finance

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The Bank takes equity positions in qualifying business enterprises as an instrument in promoting and protecting its investments, as well as playing a catalytic and strategic role to attract quality projects including those in their infancy stage that do not have adequate equity of their own.

The Banks’ total exposure/investment in any individual company shall be a maximum of 25% of the respective company’s capital.

Equity Finance Objectives

The mandate of DBZ is to contribute to the development of economically viable enterprises in Zambia. The broad objectives are to select projects that contribute towards:

  • Foreign exchange savings and / or earnings.
  • Development of local technology and of manpower skills.
  • Creation and expansion of permanent employment.
  • Use of local raw materials.
  • Development of a robust indigenous Private Sector.

Terms and Conditions of the Facility

(terms subject to change without notice)

The Bank shall review each proposal for equity participation on its own merit.

Investment Criteria

The main criteria the Bank will consider are that the company

  • Must be privately owned.
  • Must have been in existence for a minimum of five years.
  • Must have been profitable for the last three years.
  • Must have acceptable debt/equity ratio, and sound capital base.
  • Must have dividend history of the past three years.
  • Must have acceptable earning ratio.
  • Projections of future income streams must be positive.
  • If not listed, it must have the potential to be listed or quoted on the Stock Exchange.

In all cases of equity investment, the Bank will exit between 5 – 10 years through direct sale to existing shareholders or through the Stock Exchange. Please see application guidelines for procedure on how to apply. For further information and clarification, please contact the Projects Department.