FINANCE Minister Alexander Chikwanda has commended Zanaco for its meaningful contribution to the development of Zambia through its support to the growth of the agriculture sector and employment creation.

Mr Chikwanda commended the bank management for growing the bank steadily from the time it was privatised with the current capital structure standing in excess of K140 million.

The minister said this when Zanaco management handed over a cheque of K10. 5 million in dividends and a cheque of more than K45, 000 being proceeds from the sale of properties in line with the requirements of the shareholder agreements signed between Zanaco, Rabobank and Government at the time of privatisation.

Government owns 25 per cent shares in Zanaco, while 25 per cent were owned by the public, four per cent by Zambia National Farmers Union (ZNFU) and 56 per cent by Rabobank of Netherlands.

He said the high level of capitalisation showed the commitment by shareholders to grow the bank by ploughing back the profit into the institution.

"We commend you our shareholders for your responsible attitude of ploughing back your profits into the Zambian economy," Mr Chikwanda said.

He said the dividend was significant and would assist Government at the time when it was scouting for funds for development.

He said the largest dividends of funds by the bank were the assistance it was rendering to the small-scale farmers.

The minister said the steady increase of assistance to the small-scale farmers from 5, 000, in 2011 to more than 12, 000 was significant.

He said Government was happy with the repayment levels by the farmers which stood at 99 per cent.

Government was also happy that Zanaco had employed more than 1,200 Zambians and that management was paying them reasonably well.

Zanaco managing director Martyn Schouten said the bank had since paid more than K296.9 million from 2009 to 2012 in taxes and dividends to Government.