Maravi

Martinez urges banks to provide cheaper finances

Martinez urges banks to provide cheaper finances
By Fridah Zinyama
Thursday December 06, 2007 [03:00]

UNITED States Ambassador to Zambia, Carmen Martinez has urged financial institutions in the country to provide cheaper finances to Zambians if the Citizens Economic Empowerment programme is to be successful. And Economics Association of Zambia president Dr Mwilola Imakando expressed concern as to whether a proper mechanism had been put in place to safeguard the funds that would be allocated for the empowerment programme.

In an interview, Ammbassador Martinez said in Zambia the cost of accessing finances was very high and made it expensive for people to access funds.

“Most financial institutions in Zambia are offering interest rates as high as 17-19 per cent and it makes it very costly for ordinary Zambians who are in serious need of funds to access them,” she said.

Ambassador Martinez said the local financial institutions should step in and help Zambians access funds as this would help reduce dependence on donor partners.

“It should not be just about finding financial assistance from donors but the local banks should play a part in empowering the local people as well,” she said.

Ambassador Martinez said unless people had access to finances it would be very difficult for them to be economically empowered.

And Dr Imakando advised the government to come up with a system to ensure that resources that were allocated for the empowerment programme were safeguarded and a revolving fund established to that effect.

“Whatever amount has been allocated for the empowerment programme, government should just be properly grown and revolved,” he said.

Other stakeholders such as the Development Bank of South Africa have expressed interest in supporting the empowerment Act in Zambia.

DBSA executive manager for Private Sector and International Investment Solomon Asamoah said they would like to support projects that were going to help Zambia attain its empowerment goals.

Zambia will next year start implementing the CEE Act and expectations of its success are high as people are hoping to access the much-needed funds that have been set aside to help citizens with workable business proposals.

Labels: CARMEN MARTINEZ, CEE

posted by MrK @ 6:37 AM