Maravi

(HERALD) Banks commended for rural areas outreach

Banks commended for rural areas outreach
Business Reporter

RESERVE Bank Governor Dr Gideon Gono last week commended the banking sector for reaching into previously unbanked rural communities.Addressing delegates at the extraordinary session of the Zanu-PF congress held in Harare last week, the Governor highlighted that notable strides had been made by banks to reach rural areas and growth points.

"When we undertook Sunrise 1 we went throughout the country observing the state of banking in the rural areas where we found that many people were suffering from lack of financial service centres.

"I am pleased to report that the financial sector has made notable efforts towards increasing their outreach to the previously unbanked or underbanked communities," he said.

Since January this year, six commercial banks have opened more than 26 branches countrywide.

Agribank, Zimpost, POSB, Barclays Bank, CFX and CBZ now have a presence in areas such as Chibuwe, Lusulu, Centenary, Mutoko, Ngezi and Nkulumane. Urban areas have also benefited from the expansion drive, with Westgate and Borrowdale having new branches rolled out. The drive to establish financial entities in remote areas is set to gain momentum in 2008.

"We are aware that some banking institutions are working on the establishment of branches in rural and growth points including Nyika, Chimanimani, Chipinge, Muzarabani, Mount Darwin, Lupane, Plumtree and Murehwa.

Despite hyperinflation and the recent cash constraints banks are bracing for the future with optimism as envisaged by the branch roll outs. Shareholders and clients should also expect an expansion of product range as e-commerce comes on board and greater network expansion especially amongst the top commercial banks.

Labels: BANKING, GIDEON GONO, RURAL AREAS, ZIMBABWE

posted by MrK @ 2:02 PM