BANK of Zambia (BoZ) has now started issuing licensing to micro financial institutions (MFIs) to be accepting deposits from customers to push down interest rates.

The central bank believes that the measure would help the micro financing firms to have more liquidity of their own rather than depend on borrowing from commercial banks, which would enable them reduce interest rates.

BoZ Governor Caleb Fundanga said in an in interview in Lusaka that the central bank had put in place measures to address the exorbitant interest rates charged by MFIs in Zambia by authorising them to collect deposits.

He said MFIs would now be able to collect deposits at a lower rate of five per cent and then lend it at a considerable charge like what commercial banks are offering at 20 per cent.

“We are now licensing deposits taking in MFIs and this means that they will be able to collect deposits from the public and at the same time it will help reduce the interest rates,” he said.

MFIs would be able to do business at a much lower lending rate compared to the current situation where they were borrowing from commercial banks at 30 per cent.

Dr Fundanga said the MFIs were in turn lending at more than 80 per cent, which was too high.

“People have complained about commercial banks having very high interest rates at 26 per cent but some MFIs are charging more than 100 per cent interest on the loans and people are still borrowing. It is amazing and in fact it is a challenge,” Dr Fundanga said.

The central bank had created a window for them to take deposits so that they can access cheaper money.

“MFIs should not look to Government to subsidise their operations because Government as you know is also hard pressed with funding. We would not like to over burden Government but they can collect deposits from the public,” he said.

Dr Fundanga urged MFI institutions to lend to the production sectors to grow the economy.[quote]

“We can not grow our economy by just funding for consumption we need to lend to the production sector,” he said.

In a separate interview, Bankers Association of Zambia (BAZ) chairperson Saviour Chibiya urged MFIs to also access the global funds that were available for them.

Mr Chibiya said there were global funds set aside for the purpose of promoting MFIs for them to access cheaper funding rather than borrowing from commercial banks.

He noted that commercial banks had commercial motives so if they could access the global fund, they would be able to source affordable funds.

[Times of Zambia]

Women For Change (WFC) has expressed displeasure on the increasing number of women been arrested for various drug trafficking offences in the recent past.

WFC Acting Executive Director Lambe Sianga says the development is likely to impact negatively on the moral standing of women in society and the country as a whole.

Ms Sianga told ZANIS in an interview in Lusaka today that women in Zambia and World over are respected for their important roles in society and national development.

She added that women everywhere are given the status of being partners in both social and economic development hence the need for them to be responsible in their activities.

She also explained that by so doing women will maintain the respect that they have continued to enjoy.

Ms. Sianga noted that with the current situation where women have continued to engage themselves in illicit activities such as drug trafficking, women are likely to compromise with the way they have been regarded in society.

She said despite the high poverty levels currently prevailing in the country, there is no need for women to get involved in behaviours that can cost their lives.

She pointed out that there is need for women to devise good ways of generating revenue for their survival rather than getting involved in drug trafficking as a source of income.

Ms. Sianga has further urged women in the country to be role models of the next generation by living an exemplary life and avoiding bad behaviour.

The Drug Enforcement Commission (DEC) has in the last seven days arrested over five Zambian women for trafficking in various quantities of drugs.

ZANIS

The United National Independence Party (UNIP) says it will take part in the Milanzi Parliamentary by elections.
The party has also said that it will also participate in the eight Local Government by elections around the country as announced by the Electoral Commission of Zambia (ECZ).

UNIP Chairperson for elections Andsen Banda said the party in line with its policy has mandated Local Committees where the by-elections will take place to receive applications from candidates interested in contesting.

In a statement made available to ZANIS in Lusaka today Mr. Banda said the adoption of candidates at primary elections is scheduled to take place on March 20, this year.

He said UNIP is ready for the by-elections and more than confident to retake the Milanzi seat which remains a UNIP stronghold.

“All the other political parties wanting to participate will only be escorting the UNIP candidate,” Mr. Banda said.

Meanwhile, Mr. Banda observed that much of the development in Milanzi that is visible was the one left by UNIP while current ongoing projects are the ones which were left by the late UNIP Member of Parliament (MP) for Milanzi Chosani Ndhovu.

And Mr. Banda said the party has also resolved to participate in the Mufumbwe Parliamentary by-elections once the ECZ sets up the date.

He however noted that it would have been better for the ECZ to set the same date for both Milanzi and Mufumbwe by-elections.

The Milanzi seat fell vacant following the death of MMD’s Reuben Banda while the seat for Mufumbwe fell vacant after the death of MMD’s Misheck Bonshe.

ZANIS

Government has given the Lusaka City Council (LCC) K1.8billion for various works in the city.

In an interview with ZANIS yesterday, Council Assistant Public Relations Manager Mulunda Habeenzu disclosed that the money is meant for council to install culvert pipes to pump out storm water and unblocking of drainages in various parts of the city.

Mr. Habeenzu said the local authority intends to use the money to mitigate the effects of the floods in Kabwata,  Kabwata Site and Service, Makeni and Emmasdale. He named the other areas as Kamwala South, Garden, Simon Mwansa and Mother Theresa, among others.

Mr. Habeenzu disclosed that the local authority has started installing culvert pipes to pump out storm water and is also unblocking drainages in Garden compound. He said the Council has communicated with the Ministry of Local Government and Housing on how the K1.8billion would be used.

Meanwhile, Mr. Habeenzu advised members of the public to refrain from constructing structures on top of drainage systems in the city. He said the undertaking was dangerous as it has the potential to cause problems not only for owners of such structures but the city as a whole. He advised members of the community to always consult the Council when they want to put up structures.

He added that the flood situation in some areas was because of the illegal structures that people were putting up as that blocks the water from flowing into the drainages.

Mr. Habeenzu said people who put up structures on top of the drainage systems should also blame themselves for contributing to the flood situation in their areas.

ZANIS

The Women for Change (WFC) has welcomed the honouring of First Republican President Kenneth Kaunda’s wife Betty.

Mrs. Kaunda was on Saturday honoured with the 2010 “Virtuous Woman” award by the Generation Impact Foundation (GIF). The award was in appreciation of her contribution to the liberation of Zambia from colonial rule.

WFC Acting Executive Director Lumba Siyanga told ZANIS in an interview in Lusaka yesterday that Mama Betty deserves to be honoured because she played a pivotal role in the liberation of Zambia from colonial rule.

Ms. Siyanga said the gesture by GIF should be embraced by all adding that Mama Betty has also been a role model to many people. She said it was good that the former first Lady has been honoured while she is still alive.

Meanwhile, Ms. Siyanga said her organization will continue to encourage initiatives aimed at recognizing women who have contributed significantly to the welfare of the country.

ZANIS

Executive Director for Change or Die Zambia, Father Frank Bwalya has pleaded not guilty to the charge of conduct likely to cause breach of peace and has since been granted bail.

Father Bwalya, 41, of 4843 Alma lick street, Riverside in Kitwe appeared today before Chief Principal Resident magistrate Mercy Makubelo.

The Priest who was clad in a red t-shirt and red bottom truck suite was represented by three defense councils, Richard Mandona, Leonard Kasuba and Terence Mwape Chabu while the state was represented by Martin Shula.

In granting bail Magistrate Mukubelo told the accused not to interfere with witnesses in the case and also told the defense to tell Fr Bwalya’s sympathisers to reduce noise during court proceedings.

She warned that the court may sign an order to re-arrest the accused if the supporters continued making noise at the court.

The court granted Fr Bwalya bail of K100, 000 on his own reconnaissance and with two working sureties.

The State earlier made no objection in Fr Bwalya being given bail but urged the court to caution him against interfering with witnesses and that he should not move out of Kitwe.

The State also feared that the accused may continue with his activities while on bail if the bail was granted without caution.

Facts of the offence are that Fr Bwalya on March 12, publicly conducted himself in a manner that was likely to cause breach of peace at city square in Kitwe contrary to section 1789 (f) of the penal code chapter 87 of the laws of Zambia.

But defense lawyers asked the court to squash the charge against Fr Bwalya urging that it lacked sufficient particulars of where the offence took place and was not specific with what manner constituted the conduct of a person likely to cause breach of peace.

The State however said the particulars were adequate and there was no need to amend the charge before the court.

Magistrate Makubelo said she agreed with the defense to have the charge amended and include at ‘city square’ as the particular place where the offence occurred.

Earlier the charge read that Fr Bwalya was charged with conduct likely to cause breach of peace in Kitwe on March 12 contrary to section 178 of the penal code chapter 87 of the laws of Zambia.

Magistrate Makubelo set March 31 as trial date.

Among the sympathizers’ who attended the court session were former Minister of defense George Mpombo, Roan Member of Parliament Chishimba Kambwili and his Nkana constituency counterparty Mwenya Musenge.

Fr Bwalya was arrested last Friday by police in Kitwe for allegedly distributing red cards during the youth day celebrations at city square in Kitwe.

ZANIS

The Movement for Multiparty Democracy (MMD) has given K22 million to organizing committees of three forthcoming local government and one parliamentary by elections in Northwestern Province.

Minister of Mines and Minerals Development Maxwell Mwale disclosed this during the launch of MMD provincial card renewal exercise in Solwezi over the weekend.

Mr. Mwale said three wards where there will be local government by-elections in Mufumbwe, Kasempa and Solwezi west will receive K3 million each.

He said out of the K3 million each ward will receive, K2 million is for organizing election activities while K1million for buying bicycles.

He said the party has provided K13 million towards the Mufumbwe parliamentary by-election of which, K10 million will go towards organizing activities while K3 million will be used to buy bicycles.

Mr. Mwale said there was need for all the party members in the province to uphold peace and unity in order to work towards achieving one purpose of strengthening the party and win the elections.

And speaking earlier, MMD acting Northwestern Province chairperson, Peter Patel said the party attaches great importance to the card renewal exercise as it determines its strength.

Mr. Patel said for the party to enhance its strength, there was need for the members to take the exercise seriously by renewing their membership.

“This exercise posses a huge challenge to you all because after renewing your membership, you should go flat out and recruit new members into the party,” he said.

Mr. Patel said the party in the province was intact, adding that it has already started reorganizing itself and strategizing on how to win back the Mufumbwe parliament seat.

The Mufumbwe parliamentary seat was left vacant after its Member of Parliament, Misheck Bonshe died last month.

ZANIS