'Zambians' participation in economy glaringly absent'
By Misheck Wangwe
Thu 06 Feb. 2014, 14:00 CAT
ALEXANDER Chikwanda says the participation of Zambians in the economy is glaringly absent, largely on account of there being no institutions of development of various entrepreneurs that can turn to capital requirements.
And Chikwanda, who is finance minister minister and currently acting president, says President Michael Sata is in control of the country and in full command of the PF development agenda aimed at mitigating the levels of poverty among the citizenry.
Speaking when he opened the Natsave Lumwana branch yesterday, Chikwanda said the government was capitalising the bank so that it could modernise and have adequate resources to lend at reasonable rates.
And Bank of Zambia Governor Dr Michael Gondwe said there was increasing paradigm shift in consumer behaviour facilitated by developments in information technology and communication sectors.
"A survey conducted in 2009 established that only 37 per cent of the population uses formal and informal financial services, while 63 per cent are financially excluded. This is due to lack of physical access to financial service providers. It is important that financial institutions strive to bring financial services close to the public," Dr Gondwe said.
And NATSAVE managing director Cephas Chabu said the bank would continue to offer the required financial solutions to rural populations in the country.
Meanwhile, Chikwanda told Patriotic Front told Patriotic Front officials who attended the opening of the Natsave branch that useless squabbles among some party officials should not be allowed to divide the ruling party.
Chikwanda said with the PF, the country's interests would always be bigger than any individual's interests.
He said everyone in the PF must set an example of selflessness and tolerant leadership.
"If we become a party driven by useless squabbles and divisions, we are not going to attract anyone from other parties to join us. What will be the attraction? What will be the incentive or the purpose of other people joining us if you are always quarreling? Your responsibility is to guide our people in development tasks. We want you to show leadership," Chikwanda said.
He said President Sata's desire was to have party officials that would discuss issues in an honest manner and settle all differences amicably.
"You must learn how to maximise tolerance and accommodation of each other's opinion. People will always have differences. Even if you belong to the same mother and father, it's normal to differ, but what is important is to resolve those differences. Party officials, I want you to know that these things called affection, loyalty and respect are a reciprocal; if you don't respect people, they will not respect you and if you don't love people; they will not love you," Chikwanda said.
Labels: ALEXANDER CHIKWANDA, BOZ, CEPHAS CHABU, MICHAEL GONDWE, NATSAVE
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Financial services are blood to the econmy - Gondwe
By Misheck Wangwe in Mpongwe
Sat 29 June 2013, 14:01 CAT
BANK of Zambia governor Dr Michael Gondwe says the country desires favourable financial services that will significantly contribute to the fight against poverty and reduce income inequality between the rich and the poor.
Speaking when he opened the National Savings and Credit Bank (NATSAVE) Mpongwe branch yesterday, Dr Gondwe said that financial services play an important role in improving income-generating opportunities and overall improved living conditions among households.
He said better access to finance not only increases economic growth, but also helps to fight poverty.
"The role that financial services play in an economy is sometimes compared to the significant role that blood plays in the human body. It should be stressed that no economy can function efficiently without good financial products and services," Dr Gondwe said.
He said the opening of the branch by NATSAVE in Mpongwe was expected to spur economic growth and contribute to ease the access to financial services which had for a long time been a hindrance to economic development in the district.
Dr Gondwe said the bank had continued to implement the Financial Sector Development Plan that would address various weaknesses in the Zambian financial system, among them being the low financial intermediation and limited access to finance.
"BoZ has incorporated financial inclusion as part of its current strategic plan in which it has undertaken to achieve financial inclusion to 50 per cent of the population by 2015 from the level of 37.3 per cent. The rationale for this objective is that it responds to the need to bring the poor into the financial system and thereby avail them the opportunities to financial access and growth," Dr Gondwe said.
NATSAVE board vice-chairperson Fred Siame said the bank had in the recent past opened Chavuma branch in North-Western Province and Kalabo in Western Province, and plans were underway to open the Lufwanyama branch next month, all in an effort to meet the financial needs of the people in rural areas.
Siame said the bank was confident that the NATSAVE branches that had been opened would stimulate the districts to achieve the much needed development.
Bank managing director Cephas Chabu said the bank's resolve was to continue making a difference in the lives of the people both in the rural and urban areas by banking the unbanked and creating access to financial services through the opening of branches and delivering affordable financial products.
Labels: MICHAEL GONDWE, NATSAVE
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Government dissolves Natsave board
By Gift Chanda and Mwala Kalaluka
Sat 24 Mar. 2012, 13:00 CAT
THE government has dissolved the Frank Ng'ambi-led Natsave board over a K10.8 billion computer software deal hatched with a Nigerian company during former president Rupiah Banda's tenure of office.
The National Savings and Credit Bank (NATSAVE) in 2009 irregularly awarded six contracts worth K10.8 billion to various local firms, including a Nigeria-based company, Neptune Software Plc, for the supply, delivery and installation of the Rubikon University Banking Solution software and other related software at the local bank's head office and 27 branches at a cost of K3,870, 900,000 (US $759,000).
"The board was dissolved on Thursday," sources said yesterday.
"Basically, the reasons have more to do with the K10 billion software deal and the lack of quality in the decisions they have been making."
Recently, Natsave managing director Cephas Chabu was sacked from his position by the dissolved board over the same Neptune deal but has since been reinstated because, according to Natsave insiders, he was not there when the deal was being awarded.
The contract was awarded under a project codenamed "the Sitex (IT)" without approval from the Attorney General.
Labels: CORRUPTION, FRANK NG'AMBI, NATSAVE, RUPIAH BANDA
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NatSave collects K23bn from rural farmers for 2009 ISP
By Mutale Kapekele and Fridah Zinyama
Tue 02 Nov. 2010, 03:59 CAT
THE National Savings and Credit Bank (NatSave) has collected K23 billion from rural farmers for last year’s Input Support Programme (ISP). Natsave board chairman Frank Ng’ambi disclosed this on Saturday at the commemoration of the World Savings Day, which was observed in Zambia for the first time.
Ng’ambi also disclosed that his bank had paid out K74 billion to farmers in remote areas on behalf of the Food Reserve Agency (FRA) since the beginning of the maize marketing season.
“We collected over K23 billion on behalf of the Farmer Input Support Programme for 2009, under the ministry of agriculture and cooperative,” he said. “We have also paid out over K74 billion on behalf of the FRA to both banked and unbanked farmers.”
He said his bank was still concerned with the low rate of financial inclusion in the country especially in rural areas.
“We are still concerned at the low level of financial inclusion in the country, particularly in the rural areas. Therefore, our plans for branch network expansion are still active under the government’s rural finance program amounting to US$ 336, 000,” said Ng’ambi said.
“We still encourage our farmers to open savings accounts once the FRA has paid them instead of keeping money in their homes.”
And the Zambia Competition Commission (ZCC) has urged commercial banks to reduce the cost of savings.
In a statement to commemorate the World Savings Day, ZCC executive director Thula Kaira stated that consumer savings played a significant role in making available funds for trade and investment and could lead to a positive effect on economic growth, which had the potential to improve consumer welfare.
“However as a Commission, we are concerned that commercial banks have continued to charge high interest on borrowing and high bank charges that have a potential to erode consumer savings,” he noted.
Kaira observed that despite the reduction in the rate of inflation over the past few years, bank lending rates and bank charges remained high among several commercial banks.
“Our continued message to our financial service providers as we mark this important day is that there is need to reasonably reduce on bank lending rates,” he stated.
“Additionally, high bank charges, if not addressed have a negative impact of eroding consumer savings as well as consumer confidence in the financial sector.”
Kaira stated that the drop in the rate of inflation, currently standing at 7.3 per cent, should have an equal reduction in interest rates as opposed to the current scenario where commercial banks had only effected a cosmetic reduction in interest rates.
The Commission also welcomed the World Savings Day and encouraged all Zambian consumers to save money in official channels for future use.
World Savings Day was established on October 31, 1924 during the first International Savings Bank Congress in Italy with a view to highlight the role of savings to the worldwide public and its relevance to the economy and the individual.
Labels: BANKING, FRA, FRANK NG'AMBI, NATSAVE, WORLD SAVINGS DAY
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NATSAVE targets farmers in new loan scheme
By Florence Bupe
Tue 16 Mar. 2010, 08:20 CAT
NATIONAL Savings and Credit Bank (NATSAVE) has launched a hire purchase loan facility with an initial investment of K2 billion targeted at small-scale farmers.
Speaking soon after the signing of a memorandum of understanding (MoU) with Zamcapitol Enterprises Limited, NATSAVE managing director Leonard Mwanza said the facility would significantly raise productivity levels among the country’s small-scale farming community.
“The hire purchase facility will help small-scale farmers increase their agricultural output. It is mainly targeted at rural farmers but those in urban areas are also eligible to apply,” he explained.
The new facility will allow small-scale farmers to obtain equipment such as windmills, hammer mills and tread mills, among other products manufactured by Zamcapitol Enterprises, on hire purchase with NATSAVE immediately commencing the settling of the costs.
Mwanza said the facility would empower not only farmers, but also entrepreneurs with the necessary equipment.
Eligible applicants will be entitled to equipment costing a maximum of K50 million per individual.
And NATSAVE business development manager Cephas Chabu said the K2 billion was subject to expansion beyond the initial amount.
He expressed optimism that the response from the targeted market would be positive as the facility has dealt with the challenge of collateral.
He said some loan facilities were difficult for the market to access because of the high collateral requirements.
Meanwhile, Zamcapitol general manager Clementine Sakala said the facility would help enhance value addition to the agriculture sector.
Labels: AGRICULTURE, LEONARD MWANZA, NATSAVE
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Mine closures will hit NATSAVE, says Chabu
Written by Florence Bupe
Wednesday, February 11, 2009 9:40:59 AM
NATIONAL Savings and Credit Bank (NATSAVE) business development manager Cephas Chabu has said the bank’s operations will be affected by the closure of mines on the Copperbelt.
In an interview, Chabu said the customer transactions had been negatively impacted on as a result of the challenges being experienced in the mining industry.
“The fact that copper prices are still down means that layoffs are likely to continue and our business growth will be affected as employment levels decline,” he said. “Some of the people affected by job losses, especially on the Copperbelt, are our clients.”
Chabu said the ongoing global economic recession would also affect the bank’s operations, although to a lesser extent.
“Our participation in the international market and our imports are minimal, and so we’re not really affected by external shocks, but in the long run, we expect that there will be an indirect effect on our clientele base,” he said.
Chabu said the bank was instituting measures to mitigate the impact of the prevailing economic challenges.
He disclosed that the bank would open additional branches as way of cushioning operational hiccups in affected areas.
“We are expanding our outreach to address the shocks we are faced with,” said Chabu.
And NATSAVE employees have been awarded a 15 per cent salary increment across the board and an additional 10 per cent for rural based employees as hardship allowance. This followed negotiations between the Zambia Union of Financial Institutions and Allied Workers (ZUFIAW) and NATSAVE management to have workers’ conditions of service improved.
Labels: BANKING, GREAT DEPRESSION II, MINING, NATSAVE
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