Maravi

Zambians must adopt a culture of saving, says Saasa

Zambians must adopt a culture of saving, says Saasa
By Mukosha Funga
Mon 08 Oct. 2012, 14:30 CAT

ZAMBIANS must curb their appetite to borrow and learn to live within their means, says Professor Oliver Saasa. In an interview yesterday, Prof Saasa said there was need for people to adopt a culture of saving.

"The average Zambian at the moment is poorly paid or has no income at all because of the high poverty levels. And that is why the average Zambian has no saving culture or the capacity to save; it is a hand-to-mouth kind of disposition," he said.

Prof Saasa said the saving culture was both a function of the earning capacity of the individual where money was worth saving to yield interest but more importantly, it was for those that had the money to save.

He added that it was also a function of the interest rate and the attractiveness of the banking sector for people to save.

"When we go to the bank to borrow, they will charge you more than 20 per cent interest but when you put the same amount of money in the bank, it will yield interest, which of course is the motivator for saving; they will give you about three per cent," Prof Saasa said.

He said there was need to encourage people to open bank accounts as a way of encouraging savings.

"...Less than 20 per cent of Zambians have accounts today. We need to encourage more people to create accounts," Prof Saasa said.
He also urged banks to open branches in the rural areas so that everyone could have a chance to save the little they had in a proper manner.

"It is very important for people to start saving more than they borrow. They should begin to live within their means," he said. "If you do not have the money, ensure that you minimise the capacity and curb your appetite to borrow."
He hoped that as the economy grew, the culture of saving would be strengthened in the country.

"The more the economy grows, the more the likelihood of seeing improvement because there will be more money in the people's pockets but for now, people must live within their means," said Prof Saasa.

Labels: LENDING RATES, OLIVER SAASA, SAVINGS

posted by MrK @ 3:23 PM