…as it develops a turnaround strategy for the state-owned bank to operate profitably
By SHARON ZULU
THE Government plans to recapitalise the National Savings and Credit Bank (NATSAVE) at a cost of K500 million.
[ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”4,5,6″ ihc_mb_template=”2″ ]
Acting Minister of Finance and National Planning, Felix Mutati yesterday told Parliament that the Ministry of Finance and National Planning had developed a turnaround strategy to ensure that NATSAVE operated profitably.
Mr Mutati said NATSAVE was making serious strides and was growing as it had managed to lend K1.1 billion of its own money which was serious progress.
He also said in 2012 the bank only had 280,000 accounts but that the number had increased to 1.5 million in 2022.
Mr Mutati also said that in 2022, the bank reduced the number of non-performing loans from 18 percent to only one percent.
He revealed that government had adopted a niche and that K300 million would go towards business support while K200m would be for infrastructure development in order to cater for far flung areas of the country.
Mr Mutati said as part of as part of the strategy, Government had a K500 million to implement the recapitalisation of NATSAVE, which would be done in the 4th quarter of 2023 to 2024.
The Minister also said Government had earmarked funds for recapitalisation in the 2023 and 2024 budgets.
He explained that NATSAVE had collection and transit accounts for facilitating different Government programme such as Farmer Input Support Programme (FISP), Social Cash Transfer and Food Reserve Agency (FRA) payments.
Mr Mutati added that the bank had accounts for Government owned counterparties such as Zambia Revenue Authority (ZRA) and National Pension Scheme Authority (NAPSA).
He was responding to a question by Sikongo Member of Parliament, Mayungo Simushi who wanted to know whether Government has any plans to recapitalise NATSAVE.
“In an effort to increase the customer base, the bank is implementing several measures including the investment in digital capabilities such as mobile banking, internet banking, and agency banking as well as revamping marketing and publicity activities using radio, television and print media,” Mr Mutati said.
He added that NATSAVE was a realigning its current staffing to have a more sales oriented staff in order to improve the bank’s selling presence.
Mr Mutati also said NATSAVE planned to enter into strategic partnerships such as those in agriculture, construction and education sectors and also engage in mutually beneficial corporate social responsibility projects such as the one entered with the Zambia Police Service.
The Minister said currently, 14 districts had NATSAVE as their only bank , which he named as Chavuma, Kaputa, Kazungula, Chama, Mwense, Nchelenge, Chilubi, Kalabo, Lukulu, Mporokoso, Luwingu, Kasempa, Mpongwe and Lufwanyama.
[/ihc-hide-content]
