Barclays Bank Zambia has admitted that it made a biggest mistake in closing rural branches in the country some five years ago.
Bank Managing Director Zafar Masud said the pulling out of the bank from rural areas was due to Zambia’s economic down turn during that time.
He said this situation was not conducive for the continued existence of the bank in remote areas at that time.
Mr Masud reiterated that the bank has strategically positioned its self to grow through capturing all the sectors of the economy.
Mr. Masud was speaking at the Euro Money workshop hosted by Barclays Bank under the theme ‘Sustainable Economic Growth through Microfinance and Small and Medium Enterprise (SME)’.
The Workshop was held on the sidelines of the Money Euro conference that opened in Lusaka , Zambia’s capital Tuesday morning. The participants have been drawn from the local business community and international investors.
He stated that financing for the SMES was available but pointed out that communication was lacking between the banks and the SMES on products that are on offer.
Speaking at the same function, Bank Head of SMEs Regina Mulenga said the bank in collaboration with other corporation partners has devised a mechanism, of risk sharing of finance.
She cited the United States Agency for International Development (USAID)as one of the strategic partners with whom the bank has entered into partnership.
She added other partners are also providing the technical support to SMEs to equip them with management skills to run their businesses.
And Finance and National Planning Deputy Minister Jonas Shakafuswa said Government has made strides in putting financing on course for national development.
He stated that Government’s decision to reduce domestic borrowing has created an opportunity for the financial sector to take advantage of other opportunities for investing their resources.
Earlier, Zambia Chamber of Small and Medium Business Association (ZCSMBA) Executive Director Maxwell Sichula complained that lack of access to financial services is a major hindrance for the growth of the small scale enterprise.
He stated that although the financial services do proclaim to offer SMEs service, the products on offer are beyond the reach of the SMEs.
And Bank of Zambia Deputy Government Danny Kalyalya stated that the mining sector is one sector that can give a boost to move the economy forward both in the short and medium terms.
Dr. Kalyalya said the sector offers the country both the competitive and comparative advantage hence the need to use the proceeds for other developmental programmes.
He was speaking at the Bank of Zambia workshop dubbed Macro economic Stability and Investment in Zambia.
He said the reduction in the inflation rates that the country experienced in the recent past has helped in facilitating enhanced investment.
He however pointed out that the escalating world food prices and soaring oil prices was a major threat to inflation.
ZANIS/ENDS/MK/CLM