The bank of Zambia is encouraging competition in the banking sector.The bank has announced that it is negotiating with commercial banks to offer suitable loans to SME’s.
The bank of Zambia governor Caleb Fundanga said that Zambia has 18 licensed banks and with a few more applications waiting in line. He pointed out that it was important to encourage new banks to come into the market to bring about competition and subsequently good service delivery.
Loans and SME’s
The governor said, in a fast growing economy like Zambia’s it was important to support the SME’s which constitute about 70 % of the informal sector.He called on the banks to come up with products that will attract investment and which will support the growth of the informal sector.
Meanwhile, Zambia Chamber of Small and Medium Business Associations (ZCSMBA) Lusaka province publicity secretary Victoria Chirwa said that banks ask for too much collateral which hinders members of her organization to access loan for business growth. Ms.Chirwa called on banks to partner with the small scale business units and support the growth of the local manufacturing .
STEPHEN TAMBIRAI MDOMA
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