FNB engages Cutting Edge PR
By Gift Chanda
Fri 09 Sep. 2011, 15:20 CAT
FIRST National Bank (FNB) Zambia has engaged the services of Cutting Edge PR to handle its communication affairs in Zambia. Under the agreement, Cutting Edge PR will guide and assist FNB in all its local strategic communications issues, internally and externally, including media relations management.
FNB chief executive officer Sarel van Zyl said it was important for his bank to work with Zambian-owned companies in creating better strategic communications relationships in the Zambian business environment.
And Cutting Edge PR founder and principal consultant Mildred Kaunda said it pleasing for her institution to be associated with the banking brand.
"We welcome a longer-term relationshi with the local company," said Kunda.
"The new relationship with FNB Zambia adds to an honourable list of corporate clients that Cutting Edge PR has secured important and strategic communications assignments with, since its founding six years ago."
FNB entered the Zambian market in 2009 and has experienced significant growth in the banking industry in the country.
Labels: FIRST NATIONAL BANK
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Rupiah bemoans harsh conditions for loans
By Chiwoyu Sinyangwe
Wed 28 Oct. 2009, 04:01 CAT
HARSH terms and conditions of borrowing have penalised many ordinary people who have ended up facing legal action, President Rupiah Banda complained yesterday. And First National Bank (FNB), South Africa’s giant financial institution, has officially launched its operations in Zambia, bringing the total number of commercial banks in the country to 16.
During the launch, President Banda said access to funds for both private individuals and the private sector should be made conveniently available in affordable terms.
“The most affected clients are the micro, small and medium-sized enterprises. These businesses are important in growing our economy as well as providing employment to our people,” President Banda said.
“Therefore, access to funds for small investments should not be at a very high cost. The role of banks in an economy such as ours should, ultimately, be to support the small businesses and not only to finance big corporate business which already have access to other sources of financing.”
President Banda said although personal loans had been made accessible to ordinary people, in most cases, the terms were too harsh.
“People do need the money to advance family interests, but banks should make genuine attempts to meet them half-way and provide them with user-friendly packages so that the future repayment is not only detrimental to their being,” said President Banda.
“If we must put in simple terms, harsh terms and conditions of borrowing have penalised many ordinary people who have ended up facing legal action.”
Earlier, FNB chief executive officer Dr Michael Jordan said the bank which ranks among the four top banks in South Africa was aiming to have a branch in every provincial headquarters in the country as part of its immediate growth strategy.
Dr Jordan said the high economic growth in Zambia coupled with low political risk attracted FNB to invest in the country.
“We are very confident that FNB will be a huge success,” Dr Jordan said adding that the bank would transact its business in Zambian kwacha, South African rand, United States dollar, Euro, and British Pound.
South African High Commissioner to Zambia Moses Chikane said there was need to develop financial intermediaries that would help to reduce the high poverty levels in the region.
High Commissioner Chikane regretted that a lot of people in the region continued to live in abject poverty despite the huge economic potential.
High Commissioner Chikane also urged FNB to adhere to Zambian laws and provide good representation of South Africa’s corporate citizenship in the country.
Among the prominent people who attended the launch included Bank of Zambia (BoZ) governor Dr Caleb Fundanga, finance deputy minister Chileshe Kapwepwe, Barclays Bank Southern Africa managing director Zafar Masud, Stanbic Zambia board chairman Larry Kalala.
FNB launched its operations in the country last April with an initial required capital of K12 billion approximately US .43 million.
The bank has so far opened three branches in Lusaka and one in Ndola, employing over 96 Zambians.
Labels: FIRST NATIONAL BANK, RUPIAH BANDA, SOUTH AFRICA
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President Banda launches First National Bank (FNB)
Tuesday, October 27, 2009, 19:07
President Rupiah Banda has said Zambia’s business environment has remained stable and has continued to attract foreign investors despite the effects of the global economic crisis.
President Banda said Zambia has continued to record foreign investment in a number of sectors, among them the banking sector in the recent past, noting that this was testimony that the country’s economy was growing.
Mr. Banda was speaking at Lusaka’s Intercontinental hotel today when he launched the First National Bank (FNB).
He said it was important that the economic growth was supported by an efficient and effective financial sector.
“Increased economic activity demands a wide range of banking products and services which should be tailored to meet the new business challenges,” he said.
President Banda said in the last three years, the banking industry in Zambia has been steadily growing in total assets averaging at 30 per cent annually.
“Of this growth, almost 60 per cent was on account of net loans and advances largely to the private sector. This suggests to me that the economy is growing,” he said.
President Banda said the banking sector was one of the most important sectors to the growth of the economy because it provides finance to individuals and corporate entities for business activities.
He said the opening of FNB-Zambia would further promote the existing businesses and provide an environment that is conducive for investment opportunities, which subsequently should stimulate economic growth.
He hoped that FNB would help reduce the cost of bank services in the sector.
The President also urged banks to be innovative in the ways of providing access to short, medium and long term finances to Zambians.
“I similarly urge all commercial banks to move away from “arm chair banking” to making credit available to deserving customers at affordable rates,” he said.
President Banda added that by performing an effective intermediary role, banks would complement government’s efforts to enhance economic development in the country.
He however expressed concern that banks were still lending money at high interest rates and bank changes in Zambia, the development he said was discouraging average Zambians from accessing financial services.
President Banda added that the high interest rates on bank borrowing and other bank charges, particularly on deposit accounts, have made loans very expensive thereby increasing the level of loan delinquencies in the financial sector.
“Arising from this and due to generally low rates on deposits, there is a real risk that both savings and investments may be discouraged and threaten the tangible progress our economy has thus far recorded,” he stressed.
He further said such high rates have since disadvantaged micro, small and medium enterprises, which are important to the national economic growth.
And FND-South Africa Chief Executive Officer, Michael Jordaan, said his bank decided to open branches in Zambia because of the country’s sound investment and business opportunities.
Dr. Jordaan said Zambia has continued to offer a friendly business and risk free political environment, despite the global economic crisis.
Meanwhile, South African High Commissioner to Zambia, Moses Chikane said the two countries have long historical political, social and economic relations.
Mr. Chikane the opening of FNB in Zambia was one way of strengthening the existing economic relations between Zambia and South Africa.
He observed that lack of access to financial services was a major hindrance to the growth of the private sector in any country.
He said FNB would increase the tax revenue base for the Zambian government and help alleviate poverty through job creation.
The new bank already employs 96 Zambian professionals and hopes to increase the number as it expands.
Mr. Chikane said improved financial services in the Southern African region will drive the countries to achieving the Millennium Development Goals by 2015.
And Deputy Minister of Finance, Chileshe Kapwepwe said the increased investments between Zambia and other Southern African countries was a manifestation of the South-to-South cooperation.
FNB originated from South Africa in 1838 and is present in Botswana, Namibia, Lesotho, Mozambique, Swaziland and now in Zambia.
In Zambia, the bank already has three branches, two in Lusaka and one in Ndola on the Copperbelt province.
ZANIS
Labels: FIRST NATIONAL BANK, RUPIAH BANDA
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Ecobank, FNB to open branches in Zambia
Written by Chiwoyu Sinyangwe
Thursday, January 01, 2009 8:06:03 AM
ECOBANK Plc and South African-basedFirst National Bank (FNB) are set to open a branch in Zambia. First National Bank has already been issued with a licence by the Bank of Zambia (BoZ).
According to market sources, Ecobank Plc, a pan African bank, had decided to open branch franchise in the country and that recruitment of staff had commenced.
And the Zambia Development Agency (ZDA) could neither deny nor confirm the coming of Ecobank to the Zambian market.
“It is still in the initial stages, nothing concrete or firm. Until then, I can’t speak about it nor confirm,” stated ZDA communications manager Margaret Chimanse when asked on the expected coming establishment of Ecobank in Zambia.
And BoZ governor Dr Caleb Fundaga disclosed that the Central Bank had issued South Africa’s retail bank FNB a licence to open branches in Zambia, after Nigeria’s Access Bank which started its operations this year.
“It’s a good thing that FNB is coming because it is a very big and credible bank. They are coming with more than the required initial capital (K12 billion, approximately US $2.43 million),” said Dr Fundanga.
And Zambia is next year expected to get credit rating after the 2009 budget as the country’s financial advisors J. P. Morgan had already done the bulk of work required for the credit rating. This means that foreign investors will then understand and appreciate the actual levels of risk associated with the cost of doing business in the country.
Labels: BANKING, ECOBANK, FIRST NATIONAL BANK
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