BoZ urges long-term finances for growth
Published On February 24, 2015 » 1594 Views» By Administrator Times » Business, Stories
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NG'ANDUBy JUDITH NAMUTOWE –

THE Bank of Zambia (BoZ) Deputy Governor – operations, Bwalya Ng’andu has urged financial institutions to provide long-term finances to industries for meaningful economic transformation in the country.
Dr Ng’andu said in Lusaka that there was need for financial institutions to provide long-term finances in productive industries in the country as that remains a challenge.
“We need to build from different opportunities for us to discuss how we can get around the problem of providing long-term financing to productive industry in this country,” Dr Ng’andu said.
He said there was opportunity for investment, growth and transformation in the rural parts of the country.
“But we will not achieve the transformation we require, unless we can provide the long-term financing that is needed to begin the process of transforming idle land into productive industries.
“When you see an idle land, you need to see opportunity for livestock industry, rice growing and fish farming industry. All these require long-term finance and cannot be achieved through short-term financing,” Dr Ng’andu said.
Since the early 2000 the economy has been growing steadily at the rate of an average five per cent making it one of the fastest growing economies in Sub Saharan Africa.
Dr Ng’andu said the growth has been supported by prudent economic management over the years and favourable external sector development including higher copper prices among others.
“The economic expansion has not been driven by the mining industry alone; we now see development across many sectors such as agriculture, construction and tourism.
“The strong growth has brought about increased demand for financial services and markets and investors look for projects most of which require long term financing,” he said.

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