Kapiri Glass Manufacturing (KGM) Limited has signed a K40 billion (US$8 million) loan agreement with the PTA bank to revive the defunct Plant in Central province.
Kapiri Glass Manufacturing Limited Chairman Costain Chilala signed the agreement on behalf of his company while James Kabuga signed on behalf of the bank.
Mr. Chilala said Kapiri Glass Manufacturing Company will create over 400 new jobs once it is fully revived and operational.
However, he complained of the attitudes of many local banks which he said made it impossible for entrepreneurs to borrow funds for long term projects.
Mr. Chilala noted that the attitude of banks in Zambia made it impossible for the country to start an industrial revolution as they charge very high interest rates.
He said banks are not willing to lend people money for long term projects noting that if they do, their interest rates are too high.
Mr. Chilala, who is a renowned local commercial farmer, urged Government to consider introducing deliberate measures to ease borrowing either by creating an industrial development fund or enacting policies that will encourage indigenous entrepreneurs to invest in Zambia.
He further commended the Zambia National Commercial Bank (ZANACO) for funding small scale farmers through the Zambia National Farmers Union.
He said efforts of ZANACO have helped reduce poverty in rural areas.
And Minister of Finance Alexander Chikwanda described the loan agreement as unique noting that it was not often for Zambians to embark on a huge undertaking especially with risks involved in investing.
Mr. Chikwanda noted that the glass manufacturing industry will create employment for the swelling local population and also contribute to growth of the country’s economy.
He was impressed that a pan-African institution bank (PTA) was in the forefront of helping in establishing an industry which he said will produce a series of sophisticated items for the local and regional markets.
He reaffirmed Government’s commitment to supporting the efforts of local investors who endeavour to invest locally.
He commended Mr. Chilala, owner of Kapiri Glass Manufacturing Company, for embarking on a huge project which he said will provide a positive demonstration to other enterprising Zambians.