Zambia eyes crowdfunding initiative to boost businesses’ access to finance

Zambia 500 Kwacha 2003-2011

Xinhua – 09 Sep 2020, 21:18 GMT+10

Zambia eyes rolling out Internet-based crowdfunding to improve businesses’ access to finance. Experts say the country could cooperate with China on the initiative.

LUSAKA, Sept. 9 (Xinhua) — Zambia seeks to launch a crowdfunding initiative to help raise money for projects and improve businesses’ access to finance.

The Economics Association of Zambia has indicated that it will launch the crowdfunding initiative, the practice of funding a project or venture by raising small amounts of money from a huge number of people through the internet. It is a form of crowdsourcing and alternative finance.

Commenting on the initiative, social economist Kelvin Chisanga said it is a welcome move, but it requires more work because currently, banks in countries like Zambia have not yet adopted such a service.

According to him, crowdfunding was an alternative source of raising finances for project development which Africa needs especially in the current scenario where the COVID-19 pandemic has ravaged economies, resulting in constrained finances.

He further called on commercial banks to diversify their service portfolios by embracing new technologies such as crowd-funding in order to boost access for finance by businesses. In carrying out the initiative, the expert says Zambia could cooperate with China.

“We all know that China has a vibrant internet governance system as well as a high electronic device system,” he said, adding that China could help African countries through building robust Information and Communication Technologies platforms that Africa needs. ■


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