Development Bank

The core business of the Development Bank is to provide debt and equity capital to SMEs within key target sectors. The Development Bank will also assist these enterprises with business support services in order to assure viability of the enterprises.

The distinguishing feature of this product against other commercial banking lending products is that all applications shall have to demonstrate a development impact in terms of promoting environmental and social-economic sustainability e.g the financing of clean energy products for low income population, financing the development of clean stoves for cooking, financing of water purifiers and solar lightning. Each individual application shall therefore be examined against the intentionality test to identify those that are specifically intended to bring positive social impact alongside financial sustainability. The detailed product attributes have been included under terms and conditions

The Development Bank will offer the following products to qualifying SMEs in line with its strategic objectives and business model:

• Medium Term Loans
• Long Term Loans
• Equity Capital
• Quasi Equity Capital
• Credit Risk Guarantees
• Leasing Facilities

The loan product is designed to finance SME’s operating or carrying out projects in the following sectors:

• Agribusiness: - processing of grain, fruits and cotton and value addition to primary agricultural produce
• Education:- provision of equipment to private schools and colleges and any other learning tools and accessories
• Energy: - production and provision of energy at a small scale from biogas, from waste, or using renewable resources such as solar and wind
• Health: - provision of equipment to private medical practices and related paraphernalia to improve quality of diagnosis and treatment at this level of medical practice
• ICT: development of software and applications; provision of services that enhance consumer access to internet; data processing and activities related to mobile telephony and mobile internet usage
• Tourism: - provision of resort and tour services in various parts of the country and with particular attention to standards and amenities

The minimum amount of capital financing you may seek from NBM Development Bank is MK15 million and the maximum is MK150 million

The development bank will not finance the following activities:

• Working capital requirements
• Tobacco or tobacco products
• Beverages with an alcoholic content exceeding 15%
• Casinos or companies where the principle source of income is gambling
• Speculative investments in real estate or commodities
• Illegal activities
• Activities that run against generally accepted societal behavioral norms such as pornography, businesses associated with corrupt activities, nightclubs associated with nudity, brothels, among others
• Investments harmful to the environment