ZSIC leans towards agriculture as it repositions its business
By Charles Mangwato
Mon 21 June 2010, 04:01 CAT
ZAMBIA State Insurance Corporation (ZSIC) Group of companies says it will position itself strategically so that it is not only an insurance company but a partner of all sectors in economic development.
ZSIC Group managing director Irene Muyenga said the company would particularly support the agriculture sector because of its crucial role in economic growth. Muyenga was speaking in Choma on Saturday at a cocktail party hosted for the farming community in the district.
She said as part of the strategic focus, the company would in the next five years provide adequate insurance for the rapidly developing sectors of the economy, especially agriculture.
Muyenga said agriculture had been a very strategic area of business and ZSIC would provide insurance products that would meet specific insurance demands of the farming community at competitive rates.
She said the company’s priority was prompt payment of claims within the stipulated time once a claim was lodged with ZSIC.
“I am aware that sometimes we may take long to make payments, but I would like to positively assure you that your business with us is soundly safe and we shall definitely be able to pay you,” she said.
Muyenga said ZSIC Group’s asset base could not be compared to any other insurance company in the country.
She further claimed that ZSIC Group was probably the only insurance company that returned most of its re-insurance premium back into the country for local investments.
“This should tell you that we are there to safeguard your assets and we shall continue doing that in many years to come,” she said.
Muyenga added that ZSIC Group continued to command respect, not only within the country, but also abroad.
She thanked the farming community in Choma for their continued support to the company as evidenced through the increased volume of business.
And ZSIC says it will establish a microfinancing institution that would provide financial assistance to Zambians at affordable borrowing rates.
Muyenga said the new institution would provide microfinance at reasonable interest rates as compared to other institutions that were currently exploiting Zambians.
She said this situation would inevitably force other commercial banks and microfinance institutions to review their interest rates in favour of the Zambian people.
Muyenga said this would be good for the Zambian economic landscape because people would borrow money for investment at reasonable interest rates.
She said ZSIC was better placed to manage microfinance since the company had been funding institutions that are involved in similar business.
“Then we decided that she should short-cut the process and just deal with the public directly by providing finances at reduced rates,” she said. “This will force other banks and lending institutions to reduce their interests.”
Muyenga said ZSIC was also working out products to meet the needs of the growing informal sector.
She said the company intended to establish a personal pension scheme for people who were self-employed for them to save money for their future needs.
Muyenga said the company plans to collaborate with the Zambia National Marketeers Association (ZANAMA), Bus Drivers Association and the Cross Border Traders Association in the implementation of the envisaged scheme.
“We understand that for us to succeed in our business, strategic interaction and engagement with our clientele is of crucial importance as we package our products,” she said.
Muyenga said ZSIC had been restructured to achieve growth and diversification in its streamlined operations which had become more efficient and effective in service delivery.
Labels: AGRICULTURE, INSURANCE, IRENE MUYENGA, ZSIC
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ZSIC, Access Bank agree to help small-scale farmers
Written by George Zulu in Monze
Tuesday, September 01, 2009 4:39:11 PM
ZAMBIA State Insurance Group and Access Bank Africa have agreed to help small-scale farmers in Zambia under the New Munda credit scheme run by the National Association for Peasant and Small Scale Farmers of Zambia. This is an K8 billion credit scheme aimed at improving food production in the country.
ZSIC managing director Irene Muyenga said this in an interview after the launch of the agriculture inputs distribution for 2009/2010 farming season in Monze.
She said the scheme was meant to empower small-scale farmers throughout the country and that her organisation, which would act as collateral, had partnered with Access Bank to finance the credit scheme.
Muyenga said farmers should take this opportunity seriously and ensure that the funds which were in form of all the inputs needed were utilised accordingly in order to improve their livelihood and contribute towards the credit scheme.
“ZISC has entered into this business as collateral while Access Bank is financing the programme but I have to quickly mention that farmers to benefit from this credit scheme should work towards increasing their production in order for them to improve their livelihood and contribute towards the credit scheme,” she said.
Muyenga said her organisation was aware how risky the agriculture sector was but indicated that it was worth investing in the sector.
“We are not only dealing with individual farmers under this credit scheme but we have also involved their leaders and farmers have been trained on how to handle and avoid risks on their farm, we shall also monitor the developments and officer necessary extension expertise for this programme to yield positive results,” said Muyenga.
And during the official launch of agriculture inputs distribution at Zambia College of Agriculture (ZCA) in Monze, agriculture minister Dr Brian Chituwo said it was not possible for government alone to reach the over 1.2 million farmers across the country due to resource constraints.
Dr Chituwo said the government initiated the FSP to improve access of small-scale farmers to inputs on matching grants basis, adding that the private sector was encouraged to actively partner in supplying inputs to farmers.
“As government will not always meet the national requirement hence our resolve to support this initiative. It is therefore encouraging and indeed commendable to see such programmes which are not only farmer-driven but also offer long-term solutions to input distributions,” said Chituwo.
And National Association for Peasant Farmers of Zambia president Rodgers Phiri said the K80 billion empowerment would bring about food security, increased income and improved standard of living among the rural populations.
Phiri said his organisation would soon introduce rural banking as a way of empowering people in rural areas.
Labels: ACCESS BANK, AGRICULTURE, BRIAN CHITUWO, IRENE MUYENGA, MONZE, RODGERS PHIRI, ZAMBIA COLLEGE OF AGRICULTURE, ZSIC
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Financial meltdown hits insurance sector
Written by Mutuna Chanda in Ndola
Sunday, July 05, 2009 4:28:04 PM
ZSIC Group of Companies managing director Irene Muyenga has said the insurance industry is feeling the pains of the global financial meltdown. And commerce minister Felix Mutati said the government would this year implement reforms that would reduce business licences from 517 to 290 under the first phase.
Speaking during a ZSIC cocktail on Friday evening at the ongoing 44th Zambia International Trade Fair (ZITF), Muyenga said firms in the insurance market were finding ways of staying afloat.
“Products in the Life category are becoming increasingly difficult to sell as prospective clients opt to use their income on household goods rather than buy life insurance products,” Muyenga said. “As for general insurance products, we have seen a general decline in the risks being covered as most of the clients opt for the cheapest products or not insure at all in order to reduce costs.”
She said ZSIC Group’s new strategic focus would be targeted at additional investment opportunities in infrastructure with more emphasis on multi-purpose property.
“These will be modeled to include business, leisure, retail and residential space among other ventures,” she said. “In anticipation of this growth, the group has created higher and broader underwriting capacities both internally and externally in conjunction with our reinsurance partners. We also intend to bring the un-insured in the informal sector on board through the provision of micro-insurance. By the term un-insured we refer to the marketeers, bus drivers and conductors, traders, SME’s and many others.”
She said ZSIC planned to set up micro financing and asset and property management companies in the medium term.
“Our ultimate goal is to have the Group listed on the Lusaka Stock Exchange by 2011,” said Muyenga.
And Mutati said the reduction on the number of licences would cut by 30 per cent on the compliance costs which stood at K2 trillion.
He also said that K1.3 trillion could be channelled to job creating investments if ZSIC and the pensions funds worked together to unlock their investments.
Labels: FELIX MUTATI, GREAT DEPRESSION II, INSURANCE, IRENE MUYENGA, ZITF, ZSIC
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State warns loss-making parastatals
By NKWETO MFULA
GOVERNMENT has reiterated that it will not protect loss-making parastatals from business competition. Minister of Commerce, Trade and Industry, Felix Mutati, said in Ndola on Sunday that Government expected parastatals to be competitive so that they could declare dividends. Mr Mutati was speaking during the Zambia State Insurance Corporation (ZSIC) cocktail party to celebrate its 40th anniversary.
“We are not going to protect any loss making company that will want to do business with Government and we do not want them ask Government to shield them,” he said. Mr Mutati called on parastatal companies to be proactive by coming up with business products that would make them profitable. He commended ZISC management for keeping the company focused and for rejuvenating the company’s services.
Mr Mutati said the separation of life and general insurances should result into the corporation becoming a market leader in the insurance industry.
“Only a few years ago, this company was a dying baby but you have managed to turn the corporation into a profit making company,” he said.
And ZISC managing director, Irene Muyenga said the insurance market has become more stable and active as the number of insurance companies was on the increase.
Ms Muyenga said innovations in the insurance industry was evident through new insurance products.
She said the General insurance business and the Life and Pension Products would be introduced as independent entities before the end of this year.
“We are hopeful that by the end of December 2008, the separation process will have been completed,” he said.
Labels: FELIX MUTATI, IRENE MUYENGA, PARASTATALS, ZSIC
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