1: Summary of Issues Discussed in the Panel Discussions and Presentations

Vehicle and Asset Financing: Stanbic Bank (Zambia) Limited

Presentation

Lack of access to finance for procuring assets to facilitate trade

• Stanbic Bank (Zambia) Limited facilitates trade through motor vehicle and asset financing, movable assets, manufacturing plants, tractors etc as long as the asset is not a fixed building

• Asset being procured is used as collateral hence easier for the borrower to access financing

• Type of financing unleashes potential to facilitate economic growth and create capacity in the transport and logistics space

Limited or lack of working capital

How does Stanbic Bank (Zambia) Limited make the work of transport and logistics businesses better?

The biggest worry of businesses with borrowing is the cost of financing i.e. the level of interest rates:

• Interest rates are a factor of a number of fundamentals prevailing in the market of the commercial banking sub-sector

• Competitive market that is driven by various business and economic fundamentals

• Truck bought with loan financing is cheaper than one bought through vehicle and asset financing

Are all products procured with financing of Stanbic Bank (Zambia) Limited insured?

• Bank also supports the cashflow side of businesses

• Facilitation of trade through motor vehicle and movable asset financing

• Support with cashflow for working capital needs

• There is need for PPPs to facilitate for the reduction in the cost of funds

• If a high-capital intensive product is structured as short-term, it becomes more expensive than when structured long-term

• Insurance is essentially used to reduce the risk associated with transportation

• Insurance is a critical component of motor vehicle and asset financing portfolio of Stanbic Bank (Zambia) Limited