Saturday, June 15, 2024

Financial Inequality in Zambia: Limited Access to Genuine Credit for Local Businesses Despite Commercial Banks’ Huge Profit Figures


MMD President Dr Nevers Mumba recently made a statement on the limited access to genuine credit for local businesses in Zambia, despite the commercial banks posting huge profit before tax figures. In his statement, Dr Mumba congratulated ABSA and Zanaco for their impressive financial performance, particularly highlighting the leadership of women in these organizations.

“I wish to congratulate ABSA for posting a huge Profit Before Tax figure of K1.95 Billion,” said Dr Mumba. “I also wish to recognise the historic performance of our ever Big, Strong and reliable Zanaco for posting astronomical figures in Revenues. This shows that our Financial Services Sector is growing.”

Dr Mumba expressed pride in the leadership of women in these organizations, saying, “I am particularly proud of the fact that this moment of success is a toast to women in leadership as the success has been presided over by my dear young sisters Madam MIZINGA MELU and Madam Mukwandi Chibesakunda of ABSA and also ZANACO, respectively. Well done ladies, Zambia is so proud of you and your organizations.”

However, Dr Mumba raised concerns about the impact of the high profit before tax figures on the Zambian economy as a whole. “I have a question,” he said. “I would like to know what this very high profit before Tax figure for the Commercial Banks represents to the Zambian Economy as a whole.”

Dr Mumba questioned whether the banks’ focus on low-risk lending is causing local businesses to resort to borrowing from the black market, leading to defaults and higher interest rates. “At the same time, being a politician, I know that most businesses in Zambia that have been able to borrow money have been unable to meet the repayments as and when they fell due and they end up paying more interest in penalties and or losing the assets they pledged as security,” he said.

He asked, “If these banks are so profitable, then who are the businesses borrowing and defaulting to? Could it be that businesses can only manage to borrow from the black market now? Could it also mean that these Banks have now almost completely made the shift into only lending money to Projects or sectors that have near Zero Risk?”

Dr Mumba also questioned whether the success of the banking sector has come at the cost of local entrepreneurs, saying, “Has this success come at a cost to Local Zambian Entrepreneurs?”

Dr Mumba called for the creation of real support for local businesses through affordable access to finance, saying, “Is it not time we as a nation created real support to Local Business through affordable access to finance?”

He asked for data on the yearly losses of small businesses due to high-interest rates and loss of assets pledged as collateral, saying, “Does anyone have accurate data on how much Small businesses in Zambia are losing every year in form of punitive interest to Shylocks popularly known as Kaloba Lenders, as well as loss of Assets pledged as Collateral to these lenders over very small amounts of money purely because the Bank’s refused to fund their Projects on more humane terms or because their business turn around time was longer than the unreasonable period that they get to pay off this ‘KALOBA’?”

Dr Mumba also asked what the Ministry of Finance, Ministry of SMEs, and Bank of Zambia are doing to improve access to credit for local SMEs. He raised the question of whether banks should adjust their credit policies and requirements or if local businesses need to improve, saying, “What is the Ministry of Finance, Ministry of SMEs, and Bank of Zambia doing to improve access to CREDIT for Local SMEs.


  1. No one listens to this upnd cadre mumba. He is a finished man with no influence. He sings praise for hh hoping for a job. Fuseke

    • No one here listens or reads what an Impostor based in the UK writes on LT who masquarades as someone based in Zambia…the worst thig about it is the chap it masquarades as does not even like writing or posting anything.

    • Tarino you are a hopeless loser. You are now cloning my account and sadly posting and responding to yourself. Stop using my image you clone. Pathetic little boy

    • Anyone married to one of those women is blessed.
      HH should be taking those women abroad like IMF etc, not those men.

  2. This Mumba mentions MIZINGA MELU and Mukwandi Chibesakunda as if they have any influence when they are just puppets of their muzungu handlers..I bet you Mumba is related to one of these women as his family is well connected. Mumba should be addressing his issues to MPs, the govt and the shareholders/stakeholders of these banks. Mumba has lamentably failed to produce one MP for parliament….there is something terribly wrong here but the man still carries on as President due to greed he doesnt want to miss out on handouts from his Pastor friends abroad to sponsor his campaigns.

  3. Also I doubt about Kaizar Zulu residence. Slowly I am learning that heli’s one of the diasporas in England. He is now in the position to help Lusambo with a job of cleaning toilets. Bunonly under condition that he should not come with that certificate bought and printed in Matero

  4. These women have nothing to do with how the bank performs. It’s just market forces at work and the systems in place which were there even before they joined. Mukwandi Chibesakunda was at Natsave for a number of years how come she didn’t show a profit there?

  5. The banks are making profits from forex transactions and investing in governments bonds. Money for this is provided by depositors and government deals

  6. Has anyone here tried Microfinance borrowing? Some of us in the UK try to support this but it feels like a drop in the ocean.

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