GOVERNMENT has urged business firms to re-invest their earnings locally in order to improve economic activity.
Finance Minister Alexander Chikwanda said re-investing locally limited the outflows of money, therefore, strengthening the economy.
Mr Chikwanda was speaking during a Bayport Financial Services deposit-taking launch in Lusaka yesterday.
“Foreign banks take a lot of money out of our country, therefore, Zambian participation is good for the economy as it reduces foreign exchange outflows and in return, strengthens the economy of the country,” he said.
Mr Chikwanda said re-investing in the country’s economy would help build the backbone of the country’s future economy through the growth of deposits over time.
He commended Bayport for its expansionary effort in providing financial lending services which had significantly contributed towards the nation’s financial sector development plan.
Bank of Zambia director for non-banking financial institutions, Visscher Bbuku praised Bayport for its investment in deposit-taking because it enhanced financial outreach.
Mr Bbuku said Bayport had contributed to financial inclusion by expanding access funding to finance the middle-income population.
Bayport Financial Services chief executive officer Justin Chola said Zambia had gained a negative reputation as a market where the difference between deposit rates and lending rates was significant.
“We view this as an opportunity to close the gap and provide higher returns to ordinary Zambian citizens to whom we are committed,” Mr Chola said.
Bayport has employed more than 340 Zambians and provides services to more than 95,000 customers. It has in excess of 100,000 active loans.
After five of failed policy PF have finally realised how miserably they have failed. What Chikwanda is telling us now is what the clueless should have done in 5years. PF has been a disaster, a costly experiment with no direction. Chikwanda the same old fossil that careless borrowed in the 80’s has again done what he knows best, plunge the country into debt and the president has been watching.
But Mr Chikwanda where will I find $50,000,000 to pay Bank of Zambia for security? You have made rules that only benefits foreigners. How many people in Zambia can afford this sort of money?
Certainly, but it is nothing compared to the amount of money corruptly acquired by our politicians that they deposited in offshore accounts.
Bayport CEO complaining about high interest rates? Look who is talking! The microfinance community schemed ways of busting the PF pledge and rules to limit borrowing rates until last year when BoZ lifted the limits.Justin Chola should explain why Bayport charges over 60% on annualised basis for their microloans.
Why cant you form Banks with your fellow thieves Chikwanda for you have stolen enough money with your folks in PF?
If start then other Zambians will follow.
This talking after the horses have bolted so to speak. Mr Chikwanda’s PF party has been in govt since 2011 and apart from self enrichment what has his govt achieved during the wasted 5 years? What has the PF Govt achieved during this period? PF govt has a pathetic record of performance to say the least. Another 5 years of the clueless and visionless rule will be a disaster for Zambia.
why was ZANACO auctioned then?!!!!!!!!
Political independence is meaningless without economic independence. The question is: why economic independence more illusive than political independence? Was political independence timely? Will economic independence be on time? One possible argument is that independence is not an appropriate outcome. The right outcome is interdependence. The era of globalization implies “the worldwide spread of sales, production facilities, and manufacturing processes, all of which reconstitute the international division of labor…” (Reich, 1998). Under the circumstances, certain assumptions need to be revisited. These include: ethics, attitudes, stereotypes, prejudices, culture, language, curriculum, etc. The development of infrastructure needs a superstructure that is bridged by a suprastructure.
Nonsense, Globalisation is nothing more in reality than re-colonialisation. The West has over developed their economies. Growth is negative in their Economic system. They need new sources to create wealth. Coming to Africa and Asia, and other Developing countries to provide ‘Services,’ is really for their benefit. Globalisation works to set structures of theirs in your country, with their homogenous Vision to facilitate this new area to expand their regressive economies. STAND ON YOUR OWN FEET. Stop plugging your economical wellbeing to greedy West. They always take the lion share.
This Chikwanda belongs to the dust bin,a normal president could have retired this fossil but we have got a clueless,visionless,useless,hopeless,dullness,ruthless,brainless and a drunkard Edgar chakolwa kaloba Wrungu.
And this is a Finance Minister in this govt for 5 years…really laughable…no further comment!!
Maybe we DO need a change. Honourable Sir Chikwanda must now step back and let younger economists with new ideas to step up to the plate in managing our economy.
Hon. Chikwanda is a great brain, but he has put in a good innings and must see that he could do a service to his country and gov’t by allowing someone else to take the baton to lead us out of this tough time of austerity coming. If HH was not so stuck in his vision, he could agree to take this post after the next loss. Let us honour HH, with taking over Chikwanda….if he can/is able to set pride aside and work with another party!!
What does a character who presented the 1974 budget to parliament know about modern economics. The man is a fossil. And instead of telling us what should happen why doesn’t he develop policies that will encourage Zambians to do what he is saying. These people are clueless. We give him a job and after five years he says Zambians should own banks. Really, be serious!!!
Honourable Sir Chikwanda must now step back and let younger economists with new ideas to step up to the plate in managing our economy.
Hon. Chikwanda is a great brain, but he has put in a good innings and must see that he could do a service to his country and gov’t by allowing someone else to take the baton to lead us out of this tough time of austerity coming. If HH was not so stuck in his vision, he could agree to take this post after the next loss. Let us honour HH, with taking over Chikwanda….if he can/is able to set pride aside and work with another party!!
Bayport is owned by a non-Zambian. I am sure most of the profits also leave Zambia.
Our gov’t is stiffing us?! Own our own banks….yet they are fronting a foreign owned financial service!!
This is Zambia at its best, the Hon. Minister is just waking up now. How possible can that be achieved when the entire cabinet & civil service comprises vuvuzelas who only know how to shout to international community to come & exploit every opportunity that manifests itself to Zambians in the name of creating jobs, even running tuck shops given to Rwandese instead of citizens. Worldwide, govts are looking to foreign investors to come & partner with locals first, creation of jobs is second because its a bye-product of partnership. If you leave out locals who is going to partners with foreigners, the Cabinet?
Just like some fathers ask their house boys, pastors, friends to come & father their children with their wives, this is exactly what all successful govts has been doing in Zambia. Everything is foreign investors even accommodation for employees its foreign investors should build houses for its employees, shopping malls, Kamwala Market Stalls. Do you think foreign investors come for small jobs? What is AHA, NAPSA, ZNBS, Workers Compensation, Local Authorities doing?
Even a child can see the logic in this “urge” to reinvest locally. However Sir you need to provide something called INCENTIVE to do so. This involves managing the economy correctly. Urging people to act altruistically is completely futile in the real world of today
Talk is cheap!! Mr.Chikwanda who are you singing this lullaby to?? How many incentives have you offered the few local banks that are already on scene? Look at what Nigeria and Kenya have done with their local Banks!! In Nigeria foreign banks are few and very small! What have we done even to grow ZANACO where government still has shares? When it was in govt hands it was wider with branches even in the UK? They were planning branches in DRC and Malawi before the poorly managed privatization coupled with MMD’s thieving of that time almost collapsed it! Where is it now despite privatization apart from being confined to Zambian borders? Look at how foreign banks have flourished in our economy at the expense of our own banks!We need discipline and can do better!!
Mahtani a zambian has always been vilified and now he is even selling his bank to foreigners