New Digital Platform to Transform MSMEs

Zambia launches PAMO to expand access to finance, cut lending barriers and boost enterprise growth through a digital credit system

By Francis Maingaila ♥️

Lusaka, Zambia24  --- (8-05-2026) -- The Government of Zambia has launched the National MSME Financial Platform Zambia (PAMO), a digital system aimed at expanding access to finance, improving credit assessment and strengthening financial inclusion for micro, small and medium enterprises (MSMEs), in what government and private sector stakeholders have described as a major structural reform of Zambia’s financial system.

Speaking during the launch in Lusaka on Friday, Sib Ali, director and member of FAUREE board of directors, said the platform marks a shift from traditional collateral-based lending to a digital, transaction-based financing model.

Ali said the initiative connects MSMEs, banks, regulators, government and development partners on one digital infrastructure to improve efficiency, transparency and access to finance.

At the centre of the platform is a digital onboarding system that allows MSMEs to register using mobile devices, submit business details and access credit scoring based on verified transaction data instead of traditional collateral.

Once registered, businesses apply for financing through an automated credit scoring system linked to partner financial institutions.

The platform also digitises commercial transactions by capturing purchase orders, delivery notes, goods received confirmations and electronic invoices to improve traceability across supply chains.

After invoices are validated, MSMEs can request financing, with approved funds disbursed directly to businesses while buyers settle payments with financial institutions at maturity.

Developers say the system is expected to reduce payment delays, improve transparency and ease liquidity constraints affecting MSMEs.

Ali said the platform could increase access to working capital for MSMEs by up to 40 percent, while supporting job creation, business expansion and formalisation of informal enterprises.

He added that the system includes transaction-based lending, digital tracking and regulatory compliance measures aimed at strengthening confidence in the financial system.

“This is not just a platform,” Ali said. “It is infrastructure for a more inclusive and digitally enabled economy.”

Minister of Technology and Science Felix Mutati said PAMO was introduced to address key MSME challenges, including limited access to credit, high borrowing costs and lack of financial records required by lenders.

Mutati said the platform uses digital data and artificial intelligence to support lending decisions and reduce reliance on traditional collateral.

Through the system, financial institutions assess business performance using transaction history, financial behaviour and digital records.

Government says PAMO will enhance financial inclusion by bringing MSMEs into the formal financial system through digital profiling and credit scoring.

Mutati said the platform is part of Zambia’s broader digital transformation agenda aimed at modernising the economy.

He noted that success of the system depends on expanding digital infrastructure, with fibre optic coverage increasing from about 15,000 kilometres in 2021 to around 45,000 kilometres.

Permanent Secretary in the Ministry of Small and Medium Enterprise Development, Subeta Mutelo, said MSMEs continue to face high borrowing costs, strict collateral requirements and limited access to tailored financial products.

She said about 60 percent of small businesses lack sufficient capital for growth and sustainability, while most loans remain short-term despite long-term investment needs.

Speaking during the launch of a related supply chain finance platform between government and Power Link Limited, Mutelo said the intervention is designed to address long-standing financing gaps in the MSME sector.

She said the system will improve access to affordable finance, enhance transparency and support liquidity management within supply chains.

Mutelo said it will also create a transparent digital financing ecosystem that improves MSME productivity and unlocks growth.

She added that government remains committed to strengthening MSMEs’ participation in economic development.

Mutelo disclosed that K11 million has been mobilised to support 31 MSMEs in the initial phase of the programme.

She said the initiative aligns with opportunities under the .

She urged MSMEs to move from survival to sustainability and from informality to competitiveness.

Mutelo said government is also improving export readiness through standards, compliance and certification systems.

According to her, about 1,120 jobs have already been created through MSME-related initiatives.

At the same function, three industrial yards were awarded cheques to support business expansion. The beneficiaries are Kafue Industrial Yard, Kitwe Industrial Yard and Ndola Industrial Yard. The support is aimed at strengthening production capacity, improving operations and enhancing the growth of MSMEs operating within these industrial clusters.

The cheque disbursement is part of government efforts to boost industrial productivity at local level and ensure that MSMEs in designated yards have access to working capital needed to expand operations and create employment.

Meanwhile, Zambia Chamber of Commerce and Industry (ZACCI) President Anthony Kabaghe said access to affordable and timely finance remains central to MSME growth and job creation.

Kabaghe said MSMEs continue to face limited working capital, delayed payments, insufficient collateral and restricted access to formal credit.

He welcomed the launch of the platform, saying it will improve liquidity, accelerate payment cycles and strengthen linkages between MSMEs, corporates and financial institutions.

Kabaghe said local content reforms are also creating opportunities for enterprise development, job creation and industrial growth.

He urged stronger supplier development and local procurement to ensure Zambian businesses actively participate in supply chains across key sectors.

He said the platform should be judged not only by financing volumes but by its impact on local business growth and inclusion.

Kabaghe reaffirmed ZACCI’s support for MSME formalisation through partnerships with the .

He added that the Chamber is supporting women and youth-led enterprises and will soon release a national MSME landscape analysis.

Kabaghe called for stronger collaboration between government, private sector and development partners to build a more inclusive and resilient economy.