By MAIMBOLWA MULIKELELA –

THE Bank of Zambia (BoZ) will soon review microfinance regulations to bring them up to date with the changing dynamics in the financial sector.

Central Bank Governor Michael Gondwe said BoZ was undertaking several measures such as reviewing the micro finance regulations.

Dr Gondwe was speaking in Solwezi on Wednesday, after commissioning of the National Savings and Credit Bank (Natsave) Lumwana branch.

This will help bring microfinance institutions up to date with the changing dynamics in the financial sector, with the view of narrowing the access gap in the delivery of financial services.

He said so far, about 33 licensed Micro Finance Institutions (MFI’s) are in operation and most of them are along the line of rail providing mainly salary backed loans.

“More financial service provider branches are needed in rural areas to increase outreach and deliver the much needed financial services,” he said.

The Governor said in order to address the financial literacy in the country the Central Bank was spearheading the implementation of the National Strategy on Financial Education.

Dr Gondwe said BoZ was determined to facilitate viable branch expansion and introduction of new and innovative financial products to tap savings and channel these savings to investment.

He said Natsave is a major partner to the Small and Medium Entrepreneurs (SME) sector which was increasingly being described as the future of Zambia’s economic growth.

“As the Central Bank we are ready to support Natsave as it develops business in the Zambian market to enhance financial inclusion,” Dr Gondwe said.

He assured the banking sector and other market players that the Bank of Zambia will continue to support Government’s initiative of ensuring an enabling environment for the growth of an inclusive financial sector.