Consumer bodies hail Zanaco for K2 trillion loan book

By NANCY MWAPE

THE Consumer Unity and Trust Society (CUTS) and the Zambia Consumers Association (ZACA) have commended Zanaco Bank Plc for responding to the financial needs of the Zambians by availing K2 trillion to spur economic activities.

Speaking in separate interviews, ZACA executive secretary Muyunda Ililonga said as an association, they are happy that Zanaco is responding to market demands.

Zanaco Bank Plc’s book loan this year stands at K2 trillion with individual loan and the agricultural sector accounting for a larger funding to be released into the national economy to spur economic activities.
The individual loan potfolio will account for the lion’s share of the loan book at 43 percent and the agricultural sector 27 percent while the remaining sum is to be shared between corporate entities and Government.

“We are happy that the privatisation of Zanaco is benefiting the country, this is one bank before privatisation that never used to give loans to the public,” he said.
Mr Ililonga said with this huge loan portfolio on its books, it was clear that the sale of the bank worked well.

He said the loans especially those targeted at individuals, the private sector and agriculture industry will stimulate economic activities in the country.

“People want to invest in capital projects but lack funding. The loan will boost individuals to engage in economic ventures and create additional jobs in the market labour,” he said.

He said with increased competition in the financial sector, the banking industry is robust and innovative, adding that if this momentum continues, it will boost the Zambian economy.

CUTS chairman Lovemore Mtesa said lending to individuals and small scale entrepreneurs by commercial banks is a direct form of empowering them.

“This is something that should be lauded, we welcome the development and hope that the interest rates offered are affordable. If the cost of money is too high it defeats the whole purpose,” he said.

In August this year, Zanaco launched a new campaign dubbed “Empowering you. Building Zambia” aimed at boosting economic development and generating employment through targeting key segments of the country.

The bank is providing loans at reduced rates to cater for corporate, small-scale entrepreneurs, farmers and individuals.

Meanwhile, Zanaco has invested US$1 million to be spent on adaption of its infrastructure in readiness for the rebased Kwacha to be implemented on January 1, 2013.

The bank says that it is on track in its preparatory works to ensure smooth adoption of the new Kwacha.