Finance Minister Dr Bwalya Ng’andu says there has been low uptake by Businesses of the K10 Billion Stimulus Package set aside by the Bank of Zambia for economic recovery amidst the Coronavirus pandemic.
Dr Ng’andu says the lack of information on the stimulus package among the intended beneficiaries has led to few of them accessing the facility from Commercial Banks.
He said at a media briefing that the Government will now increase the number of non bank financial institutions that will participate in the disbursement of the money because most of the small and medium enterprises access loans through such facilities.
Dr Ng’andu said most SME’s do not access loans through Commercial Banks and expressed hope that the engagement of non Bank Financial Institutions will increase the uptake of the facility.
Early April 2020, the Bank of Zambia announced that it has established a Targeted Medium-Term Refinancing Facility with an initial amount of K10 billion to provide medium term liquidity in light of the Covid-19 outbreak.
In a statement, Bank of Zambia Governor Denny Kalyalya said the K10 billion was part of a comprehensive list of measures that the central bank was taking to respond to the Covid-19 crisis.
Dr Kalyalya explained that this is a three to five years Facility that will be available to eligible Financial Service Providers to enable them restructure or refinance qualifying facilities or on-lend to eligible clients and that the amount will be reviewed as conditions warrant.
Established savings cooperatives would be a better route to disburse this fund. Good minister has made an early observation
It’s simple, how do you go borrow more nkongole when you’re still owing? We told you to pay suppliers and remit funds you’ve been deducting from civil servants to financial institutions , that’s what will solve the problem. Suppliers to the mines don’t need that money because they’re working Focus Financial Services. Today a Govt tender or LPO isn’t attractive because GRZ has defaulted big time. GRZ is the largest single consumer of goods and services so the way it conducts its procurement affects a larger sector of the economy. So can you clean up the government system otherwise these packages won’t have any effect. People know that banks are giving collateral free loans but they have difficulties I have explained above
These idyots, people don’t want to take loans, why do you want to steal on their behalf? Leave money in Zanaco mwe mbwa mwe
Opening up a window for siphoning these funds??Leave this process with the financial institutions. They are better equipped to disburse these funds in a responsible & accountable manner.
I know of dozens of people myself included who have applied and not got anywhere. Either it doesn’t exist or its being mismanaged.
Further, the Kwacha is oscillating around K20 to a Dollar. SME’s are afraid that if they borrow and order stocks now they will have difficulties when the Kwacha gains. Many are anticipating that the Kwacha gain in the final quarter of the year. Their goods won’t be competitive. Businessmen don’t need a strong or weak Kwacha, what they want is a stable Kwacha! The Kwacha can even be at K50 to a Dollar what they want is for it to remain at the same exchange rate for longer than 2 years or even more. Locals don’t have the muscle to adjust their prices to the rate of the Dollar as easily as the Chinese and Indians.
@Ayatolla: Kwacha has today opened between K17. 99 and K18. 05. DO NOT MISLEAD AND ALARM PEOPLE. Every economy has been affected by lockdowns and lack of activity. Right now South African imports have skyrocketed due to no supply. Please be objective.
You have never done business, when you transfer money by TT there are other charges which add to the cost of money. I said we need a stable Kwacha, but you check tomorrow’s rate if it’ll be the same? Don’t talk with food in your mouth
You can’t force a horse to drink water.i was watching a video of Sean combs aka p diddy, where he was pleading with black business owners in America to claim similar financial packages in America because only a very few had done so. It says a lot about us as a race. We need to be a bit more fierce when it comes to business. As a government we have done all we can. We can’t also wipe your backside. This is not Australia. Ask catpower. Kz
I feel people are not interested myself included because at the end of the day, the usual people (we all know them) will still end getting it all without even applying for it.
Zambian Citizen
Ayatolla is right , tell us when last the Kwacha was stable for more than 18 months. ?
Don’t blame covid , the Zambian economy was on a ventilator long before covid.
Kwacha must have been around 16 or 17 to the dollar before covid
These people are not normal. Does it make sense to them that suppliers are still chasing invoices for 2018? They’ll begin to see these things when we kick them out
Spaka, you are quarantined there as a second class economic refugee while I am here in Lusaka and able to walk into the nearest bureau. Why would I listen to a donkey from there??
Iwe minister Forget about the idea…just use the money to pay teachers , council workers and civil servants
To be honest is not much for a business. That is a small change for a rich guy like me who has amassed so much wealthy over the last few years. Bally and his clones will accuse me of corruption and bragging but if you are wise and you use your head, it is easy to get rich. For example I have properties in the UK… don’t ask me how I managed to afford such properties, because I won’t be giving away my secrets. Send me a private message and I may tell you a secret or 2. With PF set it life to be in power, I’m just going to get even richer. This is no bragging but facts. Kz
The information is still missing even in this story. So many unanswered questions, e.g. who can actually access this money? Is their criteria for eligibility? Is there a maximum or minimum amount? Is this is a loan or free stimulus package? What are the conditions attached? Is it regarded as a taxable income? How long does it take for the application process?
Look at s!lly Kaizar Zulu openly bragging about corruption and proceeds of corruption. The man has no more shame whatsoever. How sad is this!
Zambian citizen
Only the scared are quranteened here….We still move.
I am still able to buy your toilet paper kwacha at 20 to the mighty pound…..
Just answer the question , when last was your toilet paper kwacha stable instead of blaming covid ????
My clone above is trying to hard but failing because everyone can see through him. Look how different the first comment, which is mine, is from his above. You won’t tarnish my name. I have skin of a crocodile. I like that you are spotting my picture with vote pf. Continue advertising hahaha. You are a pf supporter now. Welcome to our party ba clone
1. This is a lockdown crisis.
2. “non Bank Financial Institutions ”
Sounds clear and transparant to me.
3. “Dr Kalyalya explained that this is a three to five years Facility that will be available to eligible Financial Service Providers to enable them restructure or refinance qualifying facilities or on-lend to eligible clients and that the amount will be reviewed as conditions warrant.”
So the bank is potentially lending to other banks, who then might “restructure and refinance qualifying facilities”.
At what point does the money end up with ordinary businesses?
Most of us country men and women with family responsibilities will think twice about paying back the loans. With the economy in shambles, businesses are closing down. A very bad idea to borrow money now. These loans will become a burden upon us for generations to come.
This is something PF should have thought about before getting us into a debt crisis.
Obtain a bank loan and invest how? Businesses are closed because they are not allowed to operate. Those are open are struggling to sell because there is no demand. How then does one pay back? You mean well bwana minister but first and foremost, do your act to stimulate demand
There is low uptake probably because its probably another PF lie..moreover businesses are not as stupid as Lungu’s regime who borrow unsustainability. I mean if there is low uptake it means something is truly not right with the commercial banks and MOF….are these loans really at 14% APR? Normal rates in with thieving commercial banks is 35- 45% APR
@OBSERVER comment might look trumpish but it is one very valid point mr minister, if that money can be channeled towards unpaid arrears, unpaid pensions and council and civil servants as observer as rightly put it, these will in turn seek goods and services from local industries, hence sustaining the local industries amidst the current pandemic.
Dr Bwalya Ng’andu commentary of SMS sector not accessing loans through commercial banks is unfortunate to come from his office. Its the duty of government to create an environment that is conducive to financial services through various well worked out models. This was well articulated by the former Minister of Finance Dr Katele Kalumba and Dr Ng’andu would do well to read those views by his former boss. The idea of stating opportunities do exist without spelling out how to access such opportunities is words hoodwinking the public to which rogue KZ refers to forcing a horse to drink.
KZ insulting well meaning citizens will not insulate you as public enemy of Zambia. You or impostor, Zambians will not forget that you have harassed, beaten, maimed, humiliated, kidnapped, fired guns and shot Zambians and dehumanise Zambians. Zambians deserve justice and time is coming to get it. Cleansing yourself on this site will not wash up, records, living witnesses exist and testimonies will be in your face.
MunaDekhane – There is a clear lack of direction and leadership…I mean which business with a good credit rating would not want to access loans for 14% APR in Zambia as opposed to 45%APR and which commercial bank wouldn’t want to assist their clients obtain these monies. They are not doing it for free.
StreetKid – Loans are not for you ..I bet you have a poor credit rating…you need more financial educating!
My experience regarding this loan money exactly as put by
Steven Rogers
How? Who? When? Where? We probably know the ‘why’ but its surprising that we should be hearing this long before details relating to key elements of the package were availed to the public
The moron is still crying like a toddler about cloning his fake account look at him ….silly boy you brought these childish games here you bonehead!!
@KZ
No one can tarnish your name any more. You did GREAT job yourself. There is nothing left to tarnish
Who would want to shoot themselves in the leg? They get now and things turn around and it becomes unnecessary expense or they get little and does not do any meaningful change to the business, the situation deteriorates and they end up having unwanted expenses. Your interest rates are still high and inflation keeps rising, apart from that there is too much bureaucracy in your process of obtaining loans that too keeps people away.
I went to my commercial bank and inquired about this facility after labour office told me I couldn’t lay off workers due to Covid even when I have no business now. The Manager said they had not yet received the money from government. Secondly, he was certain that the interest rate would NOT be the 12% announced by governor but would probably be around 25% after adding up their own margin. There is nothing for nothing he said. Further he even mused that the scheme might never work because the banks will simply swallow up the bailout funds into standard business.