The National Savings and Credit Bank (NATSAVE) has launched an Asset Plus Loan Product for traditional leaders countrywide.
The Asset Plus Loan is specifically designed for traditional leaders and their subjects to access farming implements that include trucks.
ZANIS reports that the loan product is anchored on a tripartite partnership involving NATSAVE, the Ministry of Chiefs and Traditional leaders and Danatrac a company that vends in tractors.
Speaking at the official launch of the loan product, Minister of Chiefs and Traditional Affairs Lawrence Sichalwe said the NATSAVE Loan Product will empower traditional leaders to contribute towards the country’s agriculture productivity.
Mr. Sichalwe added that the loan product will also empower subjects in chiefdoms with an opportunity to use the tractors and cultivate larger portions of land in order to contribute to the National Food Basket.
The minister stated that the agriculture sector if strengthened has the potential to grow the economy of the country.
Mr. Sichalwe further thanked NATSAVE for its innovation and product development in agriculture finance.
He said without the loan product, some traditional leaders would have found it hard to access farming implements for mechanization.
And speaking at the same event, NATSAVE Managing Director Cephas Chabu pledged to continue fulfilling the Bank’s mandate in promoting financial inclusion in the country.
Mr Chabu said the loan product will assist traditional leaders acquire durable farming tractors and other equipment for increased productivity.
The NATSAVE Chief further commended the House of Chiefs and the Ministry of Traditional Affairs for their commitment in ensuring that the loan product is rolled out to traditional leaders.
House of Chiefs Vice Chairperson, Chieftainess Muweza of Itezhi-tezhi district commended the Ministry of Chiefs, NATSAVE and Dunatrac for the innovative product.
The traditional leader said the development will enhance agricultural productivity in chiefdoms.
Chieftainess Muweza added that the development will help reduce poverty, child marriages and other vices in rural areas
Are chiefs farmers? This waste of money. Most of these chiefs do nothing especially the President has even given them free K15,000/month
This is just another way of stealing under the incompetent, violent, confused & visionless PF of Lungu.
These PF bandits will never cease to amaze the people. Loans to chiefs? Hey PF bandits, can you please deal with load shedding tears, reduce fuel prices & mealie meal.
Still, the presidential petition must be heard without fail. Say no to PF cadres mascaraeding as judges. Tired of these PF bandits under visionless Lungu without any plans.
The Skeleton Key
~206~
By the way, Lubosi Imwiko II is not a chief but a King. Litunga means King.
The Skeleton Key
~206~
This PF government if left uncontrollable shall create serious problems in the country. Just how do you avail traditional chiefs loans mwebantu? Indeed since when did chiefs become farmers? Is is this some kind of gimmick to let lending institutions give loans to incompetent and mostly drunken chiefs so that at the end of the day, these banks could posses huge tracks of land from these poor souls for failing to pay back loans? I for one smell a rat here please, revisit this move.
This can be of putting chiefs under bondage. Just because you are chief does not mean you are a farmer and most peasant farmers to pay back big loans because of the markeking system of the produce were the Major buyer FRA determines the price according to their budget. The best way can be giving these tractors through co operatives so that they can serve more farmer who can contribute to the rapaying of the loan and GRZ to garantee the loan
I am trying to understand the logic between this loan product and tripartite arrangement from a financial and credit risk management perspective. Do the chiefs get an allowance or salary through the Ministry of Chiefs? Is this the income that NATSAVE will be tapping in to recover the loans? If so then there is not much innovation here as this is a typical payroll loan. No proper credit assessment of the borrower done at all. With regards to the funds being used specifically to acquire agriculture assets like tractors through Danatrac, this will only be beneficial if the chief is already a farmer and puts the tractor to good use. Other-wise they will end of trying to dispose of these tracks and will undermine there ability to service the loan. This initiative might have the best of…
This is easy money for the chiefs..do they work or have businesses.
Here is an example of an Extractive Society and Economy-empowering the elite and already powerful rather than the ordinary masses and deserving hard working real farmers. Ever wonder why Africa and Zambia is the way it is?