Maravi

Finance Bank’s lending to agriculture rises by 30%

Finance Bank’s lending to agriculture rises by 30%
By Mutale Kapekele in Kasama
Thu 09 Sep. 2010, 15:00 CAT

FINANCE Bank has increased its lending to the agriculture sector by nearly 30 per cent, board chairman Dr Jacob Mwanza has disclosed. Zambia’s agriculture sector has for a long time struggled to access debt capital as banks rarely lend to agro businesses for fear of the high risk involved.

Speaking during the official launch of the new Finance Bank Kasama branch, Dr Mwanza disclosed that of the bank’s current K750 billion loan book, 30 per cent went to the agriculture sector.

The launch of the modernised Kasama branch was witnessed by finance minister Dr Situmbeko Musokotwane, Bank of Zambia deputy governor Denny Kalyalya, tourism minister Catherine Namugala, lands minister Gladys Lundwe and some deputy ministers from various ministries.

“Our loan book is growing steadily and currently standing at K750 billion of which nearly 30 percent is to the agriculture sector. We have also disbursed K20 billion to Small and Medium Enterprises (SMEs),” Dr Mwanza said.

“Since I assumed the chairmanship of Finance Bank in April 2010, we have worked hard with the shareholders, government and management to not only stabilise the bank but most importantly put the bank back on its growth track, which I am happy to report we have succeeded in doing.”

Dr Mwanza said as at March 31, 2010, the bank’s deposit base, which is an important measure of performance, had dropped to an average K800 billion from K1.25 trillion as at close of the year in December 2009.

“I am pleased to report that we have now managed to restore the deposits in the last few months to now average just over K1 trillion, which is testimony of the confidence that our customers and public continue to have in Finance Bank,” he said.

“We have made progress on the corporate governance front and accordingly, the Bank of Zambia has granted us approval to constitute a board of directors following the retirement of the previous board. I shall in due course announce the composition of the board. All the members who have been nominated are persons of impeccable credentials and of good standing in society.”

He said the bank would continue to expand its customer base and to invest in branch expansion and, subject to the board’s approval, open Mansa and Mongu branches.

Dr Mwanza disclosed that land had already been acquired for the construction of stand-alone modern branches in the two centres.

Commenting on the modernised Kasama branch, Dr Mwanza said the town was very important to the bank, prompting it to upgrade the branch.

“The value of Kasama branch cannot be overemphasised as history shows that this was the third location among the 52 we currently have,” Dr Mwanza said. “Our multi million kwacha investment in our new branch is a further demonstration of the importance of Kasama. The new branch is equipped with modern equipment supported by a robust information platform to support our customers’ daily banking needs.”

Speaking earlier, Kalyalya urged banks to improve their services and to endeavour to uphold good governance practices.

Kalyalya expressed happiness at Finance Bank’s improvements in the last couple of months and urged the bank to expand its services to other unbanked rural towns.

Labels: AGRICULTURE, FINANCE BANK, JACOB MWANZA

posted by MrK @ 4:25 AM