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.

ZAMBIA CSOs DEMAND ENACTMENT OF TOBACCO LAW

Press Release

A group of civil society organizations that campaign on public health are demanding action from the Minister of Health. They want him to “move” on the stagnated process of enacting a comprehensive tobacco control law in line with the country’s international commitments. Zambia ratified the WHO Framework Convention on Tobacco Control (FCTC) in May 2008 but has not domesticated the treaty since. Early this year, the PF government through the Ministry of Foreign Affairs undertook to domesticate all treaties to which Zambia is a party.

“As civil society groups we welcomed this announcement by government. We were excited that government was keen to fulfill it’s commitments to the international world but now we are dismayed because not much is happening in terms of actualization of those lofty pronouncements” said Brian Moonga, Secretary General for the Zambia Media Network Against Tobacco (ZAMNAT).

The group that recently held a mentorship meeting in Lusaka expressed regret that the Ministry of Health has been dragging its feet on a matter that has been outstanding since 2010. “We are not happy, repeated correspondence with the office of the Minster on this subject has gone unattended to.  This is not healthy, government needs to respond to the concerns of citizens and we want progress on this issue” added Raphael Makowane of Zambia Anti- Smoking society. The group says there is no justification whatsoever to continue delay on the legislation because the health,  economic and social consequence of tobacco use are well known and documented. Disease and death caused by tobacco use, once a problem manly in high- income countries, have become a large and increasing part of the burden of disease in developing countries. According to the WHO, the huge death toll associated with tobacco use is rapidly engulfing low and middle income countries, where most of the world’s 1.2 billion smokers live.

“But the course and pattern of this epidemic can be changed” said Muyunda Ililonga, Executive Director of Zambia Consumer Association, “The FCTC to which Zambia is party provides a road map to a common framework to move ahead. It promotes evidence-based measures that are effective yet cost- effective in combating tobacco use. Politicians committed to public health can place tobacco-a risk factor to several non-communicable diseases (NCDS)-on top of the health agenda and save lives and future of our children. Nations are taking bold steps to protect the lives of their people from premature death caused by tobacco use. We cannot continue with our slow match while other nations are moving forward. We must act now to protect the health of our people. The world is watching us,” added Ililonga.

Support dollarisation – ZACA

THE Zambia Consumer Association (ZACA) has urged the business community and other stakeholders in the country to support the Government’s decision to ban the quoting of foreign currency as a
legal tender for local business transactions.

ZACA executive secretary Muyunda Ililonga said in an interview yesterday that the business community should support Government’s move as it would create confidence the economy.

Mr Ililonga said the business community can only thrive under a stable economic environment.

“What Government has done is a measure to create an environment for the business community to thrive,” Mr Ililonga said.

Finance Minister, Alexander Chikwanda, signed a Statutory Instrument (SI) number 33 of 2012 which would be enforced by the Bank of Zambia.

The SI prohibits the quoting, paying or demanding to be paid or receiving foreign currency for goods and services in Zambia.

Anyone found guilty would be imprisoned for a period not exceeding 10 years or will be made to pay a fine.

Mr Ililonga said his association was aware that when the country was faced with high inflation, it was common for businesspersons to transact in foreign currency due to turbulence of the economy.

“But the economy is stable, the inflation is low, bank interest rates are low and there is nothing that warrants people to transact in dollar. This will only make citizens lose confidence in their own currency,” Mr Ililonga said.

Mr Ililonga also said that dollarisation was not necessary for a sovereign country like Zambia and therefore its tender should be respected by all.

He noted that the tendency of conducting businesses in foreign currencies was putting most consumers in the disadvantaged position.

Mr Ililonga said that with the instability in the local currency, consumers were treated to a market of unreliable prices for goods and services, thereby contributing to the country having a lot of uncertainties in exchange markets.

He said ZACA felt that the decision was progressive and should be enforced for the benefit of consumers in the country.

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ZACA says increase in bus fares unjustified

By Daily Mail Reporter


The Zambia Consumer Association (ZACA) says it is unjustifiable for bus operators in Lusaka to link the increase in bus fares to the revised minimum wage.
ZACA Executive Director Muyunda Ililonga has told Qfm News that the new minimum wage should not be a scapegoat for imposing higher bus fares on commuters.
Mr. Ililonga has since called on government to come to the aid of commuters and stop the move by bus operators.

He has also urged government to put in place a long lasting solution to the challenges in the transport sector taking into account the ever increasing population in order to restore sanity in the sector.
Mr. Ililonga has further urged transporters to rescind their decision of increasing bus fares adding that the move will have an adverse effect on the growth of the transport system in the country.
On Monday, Bus Operators on all routes in Lusaka resolved to have fares in all routes increased by K600 with immediate effect.
Daily Mail