By KENNEDY MUPESENI in Chongwe –
THE Government will rely on financial institutions for the mobilisation of capital for investment by its citizens in the country, Finance Minister Alexander Chikwanda has said.
Meanwhile, the National Savings and Credit Bank (NATSAVE) has spent K3 million on the construction of a new building to house its branch in Chongwe.
. Chikwanda
Mr Chikwanda said financial institutions were a proper mechanism and instruments for mobilisation of capital needed to raise the levels of investments and funds required to develop the country.
“With national budgets bedevilled by structural deformities which result in recurrent expenditure including emoluments and debt servicing amounting to over 70 per cent, banks can act as recourse for Small and Medium Enterprises (SMEs) to assume significance as a route for growing the economy,” Mr Chikwanda said.
Mr Chikwanda said this in Chongwe District yesterday during the commissioning of the new building for NATSAVE branch.
He said Chongwe had a reputation and good track record of high agricultural productivity and ranks highly amongst districts with high maize products which needed robust banking facilities.
NATSAVE managing director Cephas Chabu said the financial institution would continue rolling out branches in rural parts of the country.
Mr Chabu disclosed that the Chongwe branch which started operating in 2003 had grown its deposit base to K8.4 millon servicing 4,800 clients with active loans standing at K5.8 million.
“We are grateful to Government for its consistent support and the company is looking forward to open four branches in Mwense in Luapula, Kazungula in Southern, Mpika and Chinsali in Muchinga Provinces,” he said.
Senior Chieftainess Nkomeshya Mukamambo II urged residents to safeguard the bank and described NATSAVE as a pro-poor bank.
“Some banks have been operating in the country for 100 years but they have not spread their tentacles to the rural areas but it is good that NATSAVE is leading the way in increasing financial inclusion in the country,” Senior Chieftainess Nkomeshya said.
