Project Finance


This is the primary vehicle for the Bank’s intervention in financing activities through short, medium, and long-term loans to technically feasible, financially viable, economically sound and socially and environmentally acceptable projects and programs.

Short-term loans have a tenor of up to 2 years, Medium-term loans have a tenor of 2-5 years and Long-term loans have a tenor of 6-10 years. Loans can be provided in local or foreign currency.

Project 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.
Project Finance DBZ
Project Finance

Procedure for Application

To assist us in evaluating your project and financial requirements, we will require the following information:

  1. Company name and profile.
  2. The names of shareholders/directors and copies of their identities. This should also include the directors track record and resumes.
  3. Copy of certificate of incorporation together with copy of memorandum & articles of association.
  4. Copy of Vat and Tax payers identification number certificates.
  5. A complete feasibility study (business plan) with profit and cashflow projections.
  6. Audited financial statements for the past three years and latest management account.
  7. Any information in regard to other borrowings, security given etc Bank and Trade/Supplier references which the Bank will be authorised to contact for verification of details.

Apart from the above the full format of what is required is available from the Bank.

Terms and Conditions of the Facility

(terms subject to change without notice)


The Bank will consider applications from any Private sector company.

The Bank will consider applications from any Private sector company, parastatal organization , or cooperative. DBZ does not lend to individuals. It is mandatory that the promoters make a contribution of 30% of the total project financing requirement.


The Bank has great latitude in terms of investment criteria and expects to be involved in a variety of economic sectors. The Bank will only finance projects which are technically feasible, economically viable and capable of yielding an acceptable rate of return on investment.


Currently, the minimum loan amount is US$200,000 in foreign currency or Kwacha equivalent. The minimum loan amounts are reviewed by the Bank from time to time. Loans can be financed in two modalities:

  • The Bank as the single financier and / or
  • The Bank co-financing as member of a syndicate of financiers.


Foreign currency loan – interest rates cost may vary depending on the cost of funds. A margin of up to 5% above cost of funds will be charged.

Loans in Kwacha – Floating Based on BOZ policy rate plus a margin of up to 9%.


Repayment periods vary for medium term loans and long term loans. Medium term loans are repayable over 2-5 years and 6-10 years for long term loans. The Bank will consider grace periods for capital repayments of up to 2 years. The repayment schedule will be determined by the nature of the project and the cash-flow projections. The loan grace period shall, however, not exceed the net grace period on the line of credit at the time of the Bank approval for foreign currency loans. The loans will be repaid in the currencies of disbursement.



The Bank’s security requirement will normally consist of one or a combination of the following:

  • First mortgage on land and buildings.
  • Specific / floating charge on company’s fixed assets.
  • Pari-passu charge with other lenders.
  • Joint and several guarantee of the shareholders.
  • Key man life insurance.
  • Insurance over the pledged assets with DBZ noted as loss payee.


  • Unencumbered property or assets acceptable to the Bank.
  • Commercial bank guarantee.
  • Holding company guarantee.

In case of a foreign currency loan, the promoter is expected to bear the foreign exchange risk.


  • Appraisal Fee – 1% of the loan amount requested for, payable upfront and nonrefundable.
  • Facility fee – 2% of the loan amount payable before or at the time of signing the loan agreement.
  • Commitment fee – 3% of the undisbursed loan amount after 90 days from date of approval by the Bank.