Maimbolwa Mulikelela and Nchimunya Muganya
THE global financial crunch that shook even some of the strongest economies on the planet is now, mostly at least, a bad memory slowly receding into the past.
Like many other economies that were affected by the crunch, Zambians define the phenomenon and remember it more vividly as one that forced most of them out of jobs as investors, especially in the mining sector, were forced to halt their operations.
According to the International LabourOrganisation (ILO), more than 19,000 jobs were lost in the mining sector alone both direct and contract labour.Clearly, those out of jobs needed another way to continue with a semblance of normal life.
Luanshya, which understandably was one of the towns worst hit by the global crisis was picked for one of the pilot programmes.
About 10 groups of entrepreneurs in Luanshya have so far benefited from the group lending facility.
Among the beneficiary groups are Twikatane, Twafwane agricultural Association, Roan Market, , Isubilo A and B, Buseko, New Town Business Group, Progress A and B women's Club, Njele and Kamuchanga.
The bank has given these groups loans of between K350,000 and K5 million.
During a recent on the spot tour of the projects in Luanshya, entrepreneurs who were visited at Buseko, Roan and Kambilombilo markets expressed happiness with the support the bank has rendered to them during the financially difficult times.
Doris Nyirenda a secondhand clothes trader at Buseko market said the bank had not only helped her with the loan but also on how best she can run her business and build her savings.
Ms Nyirenda who has been in the same business for 18 years said for a long time she was not able to grow her business because she could not generate savings.
"Iam now able to save my profits and iam also sure that I will grow and manage my business properly because I have received an eight weeks training in business management from Natsave", she said.
"From the time I got my loan from Natsave iam able to supply to my customers at any time and pay my five workers of which three are my children." she said.With the support of her husband, Rowland Nyondo Ms Nyondo looks forward to bigger financing to enable her boost production.
Roan market chairperson Prudence Lusambo said during the difficulty times the people of Luanshya faced a number of challenges especially traders with regard to access to finance.
Ms Lusambo said it had not been easy for entrepreneurs to access loans from commercial banks because of the need for collateral.She commended Natsave for the efforts it had made in providing access to readily available loans to entrepereneurs.
Thanks to Natsave, Luanshya based entrepreneur Martin Chileshe is now planning to export reed mats to South Africa this year after he accessed a loan from the bank."Currently, our markets are in Zambia and we have managed to sell our goods in Ndola, Solwezi, Livingstone, Luanshya and Lusaka," Mr Chileshe said.
He is confident of breaking into the regional market as the demand for reed mats is high locally Mr Chileshe is able to make at least 200 reed mats in a week earning aboutK4 million.
Ms Musonda has cultivated about three hectares of maize and was optimistic of a good harvest.
Commenting on the facility, Natsave credit officer in charge of Microfinance Douglas Zulu said as a result of the group lending product the market account portfolio has grown as more people come forward to access the loans.
"As a bank we encourage the entrepreneurs who are able to access the funds to open up accounts and save some money consequently the deposits on market accounts have increased." Mr Zulu explained.
Mr Zulu further said that about K300 million had so far been disbursed in Luanshya under the group lending product.
"From the time we started the group lending programme we as a bank have seen a huge deposits build up in the market accounts and this clearly shows how well the programme was performing," Mr Zulu said.
And head of Business Development Manager Cephas Chabu said about K500 million has been disbursed for the people of Luanshya and Petauke where the product had also been rolled out.
The product was expected to be extended toother provinces by June this year.With the view to developing the Small and Medium Entrepreneurs (SMEs) sector industry, the bank also ca me up with a micro finance facility and hire purchase products.
The hire purchase facility to be introduced next month will facilitate SMEs to hire equipment for various manufacturing activities.In absence of equipment most entrepreneurs have been forced to under perform and remain stagnant especially in small scale mining operations.
Mr Chabu further noted that the hire purchase to be introduced on the market would offer solutions to entrepreneurs and ensuring their empowerment.
Apart from the introduction of the group lending facility, Natsave re-branded and re-launched the Trans cash money transfer product for bank account holders as well non-customers.
The facility allows customers end users to transact in sending and receiving of cash through the bank's branches.The product is flexible in that clients are able to receive their monies as fast as possible.
Mr Chabuexplained that the bank had to rebrand the product because it was expensive, inefficient and inaccessible to many.
With the introduction of state of the art computer system last year the bank had managed to re position itself by re branding the Trans cash product which is now real time on line.
According to Natave head of operations Milton Lukasha, the bank recognised the gap in the money transfer industry as the service was on demand."We saw gap in the money transfer and we saw how people were subjected to moving from one point to collect cash or access the facility," Mr Lukasha said.
He said the bank would continue to breach the gap by providing banking services to the unbanked population."The bank will continue to lead the way in taking financial services to the unchartered waters." he said.
Commenting on the hire purchase product, Mr Mwanza said time had come for the SMEs in the country to own equipment and assets.
Explaining howfarmers could be able to benefit from the hire purchase facility, Mr Mwanza said farmers could access ox ploughs, ox carts and windmills among other equipment to assist them in their activities.That is real moving with the times.
Times of Zambia
