Wed, 07 Jun 2017 11:47:19 +0000
ZANACO stakes K300m to drive SME growth
By MAILESI BANDA
ZANACO has pledged to increase lending by a further K300 million to Small and Medium Scale (SME) business people.
The bank’s chief executive officer Henk Mulder announced that they had increased the lending by a another K300 million to the productive sector of the economy.
Mr. Mulder said ZANACO welcomed the strong positive actions taken by the Central Bank to spur economic activities in the economy, adding that the action would turn around the economy especially in relation to credit and the private sector.
He explained that following the announcement by the Bank of Zambia to lower the monetary policy rate from 14 percent to 12.5 percent and reducing the percentage of deposits banks require to hold as reserves from 15.5 to 12.5 percent, the bank had decided to help the productive sectors of the economy attain growth.
He was speaking during a press briefing in Lusaka yesterday.
“We want to commend the Central Bank for lowering the monetary policy rate and, after succeeding to bring down inflation to single digit using tight monetary policy, it is now time to turn to the important matters of driving strong economic growth and this is where the K300 million is going,’’ Mr Mulder said.
He appealed to the private sector to utilize the increase in the amount allocated to the sector, adding that those that had businesses that were put on hold due to high interest rates should take advantage of these market opportunities.
“We are therefore excited to announce to our customers that aside from the 1.5 percentage point’s reduction in the rates of loans linked to the monetary policy rate, we have also increased in the pool available for lending,’’ he said.
He announced that the sectors that would benefit included agriculture, manufacturing, transport and energy, adding that there was special focus on the Small and Medium Enterprises as they were the drivers of growth.
Future Search trains 77,000 entrepreneurs
By MAILESI BANDA
MORE than 77, 000 people have been trained in entrepreneurship development since the Government launched the Future Search programme, says project director Mary Kakumbi.
Ms. Kakumbi said the beneficiaries of the programme have since ventured into businesses while those that were already in business have expanded their enterprises using the knowledge they had acquired.
Speaking in an interview with the Daily Nation, she said using their tracking method, they had managed to follow up on all the people they trained and on the progress they had made.
“There is a tracer system that we are implementing and this is meant to know how the people have used the information they have gotten from us. Am happy to announce that we have discovered that the people that underwent our training have either started business or have expanded,“ she said.
She said because of the training they had undergone, jobs had been created by the entrepreneurs.
“What we have seen is that people have developed in the business sector and this has resulted in job creation and empowerment for most people, leading to economic development,’’ she said.
She explained that it was the mission of Future Search to effectively and efficiently support the growth of the economy through entrepreneurship development in both the formal and the informal sector for wealth, job creation and poverty reduction.
She said the mandate was consistent with the conviction that without small businesses the country could not develop economically.
The organization aimed at contributing to the creation of enlightened entrepreneurs in support of Government’s policy of economic diversification and job creation.
She stated that developing human capital was necessary for the future and promotion of sustainable economic growth in Zambia.
She said they organization was working towards transforming minds and developing positive attitudes, culture and behavior of potential entrepreneurs.
Mineral water firm invests $70m in expansion
By BUUMBA CHIMBULU
FAIRY Bottling Zambia Limited (FB), the producers of Aquasavana mineral water, has so far invested US$70 million in expanding its production capacity in the country.
The company last year introduced a wide range of superior carbonated beverages to meet demand such as American Cola, Bubble Up, Planet juices and Reaktor energy drink.
Company managing director, Mohamed EL Sahili, said since 2009 to date, the company had invested US$70 million and had employed over 400 local people.
Dr. EL Sahili said the company was committed to producing quality products and would invest more to improve the products and create jobs for the local people.
He was speaking when Commerce, Trade and Industry minister, Margaret Mwanakatwe, toured the company in Lusaka recently
“I want to encourage other investors to grab the opportunity that Zambia offers and invest in the economy. I truly believe that Zambia is doing very well economically and can do even better.
“So far we have invested US$70 million and I must mention that what we have invested is very little compared to what Zambia deserves and this is a call to investors out there to come to invest in the country and we will continue to invest in other sectors,” he said.
And Ms Mwanakatwe said Zambia still offered opportunities for both foreign and local investment in various sectors of the economy, hence the need for local and foreign investors to take advantage of the favourable business environment.
She said Government was determined to ensure that every Zambian took part in the economy by investing in various businesses or partnering with well-meaning businessmen.
“It is amazing how Zambia is doing in terms of brining investment in the country. I want to say that there are still a lot of opportunities in the country in various sectors, investors need to grab them. We need more Zambians to take part in the economy, to partner with well-meaning business people,” she said.
She said doing so would enable Zambia create jobs and wealth and achieve the industrialisation that the country aspired for.
chief executive officer Henk Mulder said Zambia was becoming more attractive for investments, both local and foreign.
Plan on to develop Mpulungu into world-class port
By BUUMBA CHIMBULU
FEASIBILITY studies on developing Mpulungu harbour into a world-class port are concluding this month, says Ministry of Transport and Communication permanent secretary, Misheck Lungu.
Mr Lungu said the studies were financed by the African Development Bank (AfDB) to assist Government in improving the port.
“Government is on track to develop Mpulungu harbour into a world-class port. The feasibility study on developing the port financed by the African Development Bank (AfDB) is concluding this month and this will pave way for the actual construction of the new Port of Mpulungu,” he said.
He was speaking yesterday in Lusaka at the Zambia Trade and Logistics workshop on ‘‘Steering trade through inland waterways for positive economic growth’’.
The workshop was organised by the port in conjunction with Zambia Development Agency (ZDA) and the Port Management Association of Eastern and Southern Africa (PMAESA).
He said the port was a principle getaway for exports from Zambia to the Southern and Eastern Africa trade corridors.
Mr Lungu said the port was an important link for the two regions which was why Government would ensure policies that enabled safer and easy movement of cargo. He observed that Zambia was among the 15 land-linked countries in Africa faced with immense obstacles to foreign trade such as high logistical costs.
“Water ways have been used on micro scale and the Government is very committed to ensure water ways serve the economic purpose to the people in rural areas and link the country to the great lakes region,” he said.
And Zambia Development Agency (ZDA) director general, Patrick Chisanga, said the port was used to move non-traditional exports (NTEs) such as sugar and cement.
Mr Chisanga said the agency was keen to see more ports being developed to the level of Mpulungu harbour and beyond to assist in advancing the promotion of NTEs as a land-linked country.
“The Port of Mpulungu which started off small has grown to be able to help us move NTEs and other major exports to the Great Lakes Region.
“We regard the port as a major outlet to move NTEs. ZDA plays a very catalytical role in developing trade and development linkages in the region and beyond,” he said.
Meanwhile, United Nations Economic Commission for Africa (UNECA) sub-regional office for Southern Africa director, Said Adejumobi, said regional trade was the umbilical code of regional integration.
Professor Adejumbo observed that trade facilitation should be enhanced in the region.
Financial services lacking in rural areas
By LINDA TEMBO &
MUKOSELA KASALWE
GOVERNMENT is determined to bring financial services to the unbanked majority especially in the rural areas Minister of Transport and Communication Brian Mushimba has said.
Speaking during the launch of Zamtel’s mobile money service dubbed ‘Zamtel Kwacha’ Mr. Mushimba expressed confidence that the service would help in bridging the digital and financial divide between the urban and rural areas.
He said technology and connectivity was transforming lives of many in the country and that Zambia could learn from countries that set a trail such as Kenya Zimbabwe and Tanzania were mobile money was used as stool of financial for the benefit of the general public.
The minister said government had embraced financial inclusion as a policy objective having had recognized its potential for economic growth and poverty alleviation.
“The product we are launching today is in line with my government’s vision of bringing financial services to the unbanked majority especially in the rural areas,” he said.
He said the major challenge affecting the growth of the financial sector in the rural part of the country was lack of infrastructure hence government had put up a deliberate policy to spread infrastructure development across the country to create an enabling environment for conducting business in such areas.
Mr. Mushimba implored the bank of Zambia and ZICTA to insure that the quality of products and services delivered to consumers were affordable, assessable of acceptable standards to the marginalized in society
And Bank of Zambia Governor Denny Kalyaya said digital financial services should be safe, reliable and easily accessible.
Dr. Kalyaya said the BoZ strategic plan for 2016 to 2019 was to increase formal financial services to many citizens as it had a potential to contribute to the country’s GDP.
He said there was need for increased financial literacy and education and implored Zamtel to inform the masses of the benefits of their service.
Meanwhile, Zamtel Acting Chief Executive officer Sydney Mupeta said according to statistics only 24.8 percent of the Zambian population was formally banked.
Mr. Mupeta said the low level of the banked population could be attributed to the high cost associated with traditional banking services.
“It is therefore our desire that we launch Zamtel kwacha a number of people especially the unbanked in the rural areas will take advantage of our affordable rates to make this product their number one choice for all mobile transactions,” he said.
Kabompo scales up social cash transfer scheme
By JACK MAPAPAYI
GOVERNMENT is to increase the number of beneficiaries of the social cash transfer programme in Kabompo district from the current 1,080 to 3,628 by the end of the year.
Community Development and Social Services minister Emerine Kabanshi said the additional 2,548 beneficiaries would translate into more than 21,768 people benefitting from the programme in the district.
Ms Kabanshi said Government would be disbursing K720,000 every month to the district, a move that would boost the economic diversity of the district.
The minister said this when she officiated at the Kazanga traditional ceremony of the Nkoya-speaking people of Kabompo district at the weekend.
She said Government under the leadership of President Edgar Lungu has put in place measures to curb early marriages through social protection programmes aimed at lifting citizens out of poverty.
“And the social cash transfer is one of the programmes whose major objective is to reduce inter-generational transfer of poverty, especially in rural parts of Zambia such as Kabompo district,” she said.
Earlier, Higher Education Minister, Professor Nkandu Luo, said Parliament will soon come up with a law that will criminalise child marriages.
“Apart from that, Parliament will also induct a law that defines a child as anyone who is below the age of 18 years,” she said. Prof Luo said Government had taken the issue of child marriage seriously as it denied young girls the opportunity to get an education and be empowered.
