Zambia Credit Guarantee Scheme Limited (ZCGS) is positioning credit guarantees as a key financing tool to support investment in tourism infrastructure as Zambia pursues its ambitious target of attracting 5 million tourists annually under the Grow Zambia Agenda.
ZCGS Chief Executive Officer, Ms. Mary Mumba, said the Scheme is exploring opportunities to facilitate access to finance for local businesses seeking to construct, expand and refurbish tourism facilities across the country.
Speaking during an engagement with the Ministry of Infrastructure, Housing and Urban Development Permanent Secretary Professor Albert Malama at the just ended Build Expo, Ms. Mumba noted that the projected increase in tourist arrivals would need to be matched by investment in quality accommodation and supporting tourism infrastructure.
She said achieving the country’s tourism ambitions would require greater private-sector participation in developing facilities that meet international standards and enhance the overall visitor experience.
Ms. Mumba also highlighted opportunities for investment in tourism amenities around Zambia’s national parks, waterfalls and other major tourist attractions, noting that access to affordable financing remains an important consideration for local businesses seeking to undertake such investments.
ZCGS intends to help bridge this financing gap by providing credit guarantees to eligible businesses, enabling them to access funding from Partner Financial Institutions for viable tourism infrastructure projects.
The Scheme believes that strengthening access to finance for local tourism businesses can help unlock new investments in accommodation, recreational facilities and other tourism-related infrastructure while increasing the participation of Zambian enterprises in the sector.
The proposed interventions are also expected to contribute to job creation, enterprise growth and increased economic activity in communities surrounding major tourism destinations.
ZCGS will continue engaging the Ministry and other key stakeholders to identify viable tourism infrastructure projects and investment opportunities that can benefit from credit guarantee support.
Through these efforts, ZCGS aims to contribute to the development of a stronger and more competitive tourism sector capable of supporting Zambia’s ambition to significantly increase tourist arrivals and position the country as a leading tourism destination.
