LUSAKA, Jan. 24 (Xinhua) -- Zambia has launched a fund aimed at unlocking the potential of non-traditional exports, its investment agency said on Tuesday.
The Zambia Export Development Fund (ZE-DEF), to run from 2017 to 2021, is being financed by the European Union (EU) at a cost of 7.6 million Zambian Kwacha (about 760,000 U.S. dollars), the Zambia Development Agency (ZDA) said in a statement.
ZDA said that the fund will provide low cost trade finance to exporters of non-traditional exports. Zambia hopes to see stronger performance in non-traditional exports such as cotton, sugar and coffee.
The fund will also help increase the volume and value of non-traditional exports to the regional and international markets and boost earnings to 10 percent from the current 0.05 percent, it added.
The fund will also target to grow the loan portfolio to 3.8 million U.S. dollars from the current 2.4 million dollars by the end of 2018.
The investment agency intends to put in place stringent credit policy and procedures as well as develop an efficient and effective information management system on the operations of the fund.
