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Alba Iulia
Tuesday, September 22, 2020

Government and other Stakeholders need to Upscale Efforts to Provide Rural Financial Services

Rural News Government and other Stakeholders need to Upscale Efforts to Provide Rural Financial...

Executive Director Bernadette Zulu
Executive Director Bernadette Zulu

The Policy Monitoring and Research Center has recommended that the government and other stakeholders need to upscale efforts to provide rural financial services by focusing on support towards good product design, development, and delivery that meet the needs of the large rural market segment.

The PMRC has also noted the need to upscale rural finance saying the government needs to deal with the prohibitively high costs of offering conventional, branch-based services in remote rural areas by promoting creative thinking and innovation in both financial products and delivery of those products.

Executive Director Bernadette Zulu said the capacity buildings needs to be done among banks and other financial service providers on how to use non-traditional forms of security/collateral with reference to the Movable Property Security Interest Act.

Mrs. Zulu said the Central Bank needs to urgently develop Agency Banking regulations to guide and accelerate agency banking in under-served rural areas and consequently increase the agency banking share of transaction volume by financial agents.

She said the Development Bank of Zambia needs to play an active role as
an apex financial institution in providing finances to microfinance institutions for onward lending to rural areas as espoused in the Rural Finance Policy and Strategy and Rural Finance Expansion Programme (RUFEP) program design.

Mrs. Zulu added that the government and Zambia Agriculture Commodity Exchange needs to put in measures that guarantee smallholder farmers’ active participation in the agriculture commodity exchange as opposed to a scenario where majority of farmers having access to agriculture commodity exchange are well-established farmers.

She added that the pensions and Insurance Authority will also need to upscale its efforts in ensuring that the necessary micro-insurance guidelines principles are promptly put in place to promote growth of insurance uptake in rural areas adding that legislation needs to be amended to accommodate licensing of micro-insurers and the need to open up the distribution space.

“Following the enactment of Movable Property Security Interest(MPSI) Act in 2016, Patents and Companies Registration Agency and other stakeholders need to increase sensitization in rural communities on the available options through MPSI Act regarding use of a movables sets as collateral to access finance. Zambia Statistics Agency needs to include “financial inclusion variables” in its routine national surveys to be able to measure financial inclusion statistics as opposed to the country relying on private sector sanctioned surveys to measure financial inclusion”, she said.

She said all the complaints specifically relating to inconsistencies with the Weather Insurance Index payouts where some farmers receive payouts while others do not but residing in the same geographical area affected by the drought also need to be dealt with and Enhanced confidence in Weather Insurance Index to enhance uptake of other in micro-insurance products for the farmers.

Mrs. Zulu some of the key activities during the Financial Literacy Week need to run for the rest of the year and priority should be given to rural areas with lower levels of financial inclusion.

10 COMMENTS

  1. I don’t know why people don’t like that girl Bernadette, maybe she should change glasses to contact lenses. Contact lenses are not good in Zambia because of dust and smoke from firewood. Glasses should be for Chinese. Eye glasses, make most Zanbians look styupid.

  2. Bernadette I always enjoy hearing your wise advice. Having worked with you very closely in the past, I know how intelligent and passionate you are. We will take your advice on board. We prefer people like you who can give constructive criticism but also offer possible solutions. We wish our friends in opposition could emulate you. You are a force to reckon with and I look forward to working with your again very closely. Kz

    • I think you should let her do her job. Now you’re a blogger obviously your new occupation but don’t destroy what little progress PF has made. Try rebuilding your image first before being the online spokesperson. You will cause more harm KZ

  3. This very closely is suspicious for a man who is always exceeding law limitations of gun handling and violence. Will sit back and watch.

    • Cat power nothing sinister. I know this lady personally and have worked with her. Also, I note your other comment stating that I am now just a blogger. That is not the case. I am also still in government but just not as a political advisor to the president. I have other high profile responsibilities which I cannot disclose to the public as of yet. I mean I am also a citizen who is free to give my opinion on this site. It does not make me any less of a man. I have always being a people person. Clearly you don’t know me well. Kz

    • No I don’t. Obviously what I know is your relentless beating of innocent people as reported and pictured in the past. Not a good look. Would not like to meat you at a pub and differ in opinion with you. LOL

  4. Several financial facilities have shut down their branches in rural areas when you seem to suggest they open more lending agencies. Most of rural business are agric nature and commodity driven. I would appreciate you focus on value analysis both in the vertical and horizontal chain and to what extent integrated value chain to draw a clear rural areas business-geo spatial mapping based on which you build engagement with stakeholders responsible for financial and insurance regulations.

  5. Several financial facilities have shut down their branches in rural areas when you seem to suggest they open more lending agencies. Most of rural business are agric nature and commodity driven. I would appreciate you focus on value analysis both in the vertical and horizontal chain and to what extent integrated value chain to draw a clear rural areas business-geo spatial mapping based on which you build engagement with stakeholders responsible for financial and insurance regulations.

  6. What is the educational background of Bernadette Deka – Zulu? This is one big mystery for one running a big organization such as PMRC.

Comments are closed.

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