Financial literacy key in economy
Published On March 27, 2018 » 2568 Views» By Evans Musenya Manda » Features
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By MUNAMBEZA MUWANEI –
OVER the last few months, Zambia has witnessed a series of fires that have resulted in entrepreneurs losing out on their capital completely.
Apart from the fires, the country also experienced a dry spell during the 2017/2018, which affected some maize fields as some of the crop that had reached the permanent wilting point, was destroyed.
However, a number of Insurance Companies have introduced various micro insurance policies where peasant farmers and small scale entrepreneurs could insure their maize fields, livestock, small business that would enable them to recover in case of a calamity.
The introduction of the micro insurance policies would enable the farmers, small scale entrepreneurs to recover in case they suffer a loss as long as they acquire the insurance policies.
Beam Insurance Brokers Executive Director Alaster Bweupe says insurance was an important component in business whether farming or in any form of entrepreneurship business.
He says insuring the livestock animals or any property was not wasting money but could be appreciated whenever they are faced with a natural calamity or an accidental loss.
He says anything that had financial value needed to be insured against loss or in case of an accidental loss.
The livestock animals could be insured against theft, natural calamity, snake bites and also any form of injury.
“Insurance is very important component in business, be it farming or any form of entrepreneurship, the insured property is brought back to the same position in case of an accident. There is no loss in having insurance,” he said.
He called on farmers to visit the nearest insurance companies in their respective areas so that they could acquire more knowledge on whatever form of insurance was applicable to their animals or approach an insurance broker who could give them a variety of choices.
Some Insurance companies, that exhibited during the 2018 Financial Literacy Week (FLW) in Choma recently, used the opportunity to market some of the products that they had to attract the public.
ZSIC Life Company Production Manager Goldwin Mwale says his organisation had insurance products for the rural community.
Mr Mwale says his Company had introduced micro insurance policies such as the Munditule Policy which was specifically for the peasant farmers.
The Munditule policy was paid once a year because farmers only have an income after the sale of their produce and caters for a nuclear family of six.
“We have introduced a Munditule policy, it’s specifically for the peasant farmers and whenever a farmer acquires this policy, we do assist them when they have bereavement,” he said.
Madison Life Insurance representative Ignatius Ngwira says his organisation had introduced a Tilitonse Policy specifically for the rural farmers.
Mr Ngwira says so far the product had been welcomed by the rural community but would continue to do a lot of sensitisation.
Professional Insurance accounts executive Sampa Lenga Lenga says her organisation had an Agric Pack policy specifically for farmers and also had other micro insurance policies.
The 2018 Financial Literacy Week focused more on increasing public knowledge on the availability of financial services and products from the banking, insurance, capital markets and pension sectors that would accord them to save, invest and insure.
But the Ministry of Community Development and Social Welfare in Southern Province called on the Insurance firms to sensitise beneficiaries of its grants and soft loans on the importance of insurance in business.
Southern Province Community Development Officer Patrick Phiri says majority of the citizenry had benefited from a number of its empowerment programmes but lacked knowledge on insurance.
He says the department conducts adult literacy programmes were it teaches would be beneficiaries of services such as the soft loans (popularly known at village bank), small grants, and food security pack on importance of saving money but needed more knowledge on insurance.
He says they have little information of insurance but it was important that the insurance firms also target the small scale entrepreneurs.
“Insurance firms should also target the small scale business because
not much knowledge has been shared. The small scale entrepreneurs need to insure their business against natural disasters and other forms of calamities.
“Insurance will be able to come in when their businesses are hit by the natural disasters, that is why we need the insurance companies to come in,” he said.
The department had been able to equip the small scale entrepreneurs on saving money which was bearing fruit with majority of the beneficiaries graduating from selling tomatoes to having big stands.
Gracing the 2018 FLW commemorations in Choma Southern Province Deputy Permanent Secretary Kennedy Mubanga called for the extension of the FLW activities beyond one week.
Mr Mubanga says the aspirations of the FLW should be to reach out to all districts in the country.
“It is also my sincere hope that we will extend the activities beyond one week and undertake regular engagements with public throughout the year,” he said.
Pensions and Insurance Authority (PIA) Communications Manager Doreen Silungwe says the launch of the 2018 FLW was a demonstration of importance that the government attaches to financial inclusion agenda.
Ms Silungwe says this year’s event would focus on increasing public knowledge on the availability of financial services and products from the banking insurance, capital markets and pension sector that will
allow the citizenry to save invest and insure.
“This will further help members of the public to assess and select appropriate products for one’s specific needs and circumstances.
Ministry of Finance senior economist Lewis Samamba says FLW enables the public to know what was available on the market as various sectors showcase their products during the exhibitions.
Mr Samamba said the Ministry of Finance was an important stakeholder in the commemorations of FLW hence him being present at the event in Choma.
But some of the farmers that attended the event appealed to organizers of the event to reach out to the rural areas.
Speaking on behalf of other farmers, Kenneth Hasimuna a farmer from Choma’s Siamuleya, says small scale farmers had more knowledge on saving and investing but lack information on insurance policies.
Mr Hasimuna called on Insurance Companies in the country to extend their services to remote parts of the country.
He says farmers want to learn more about the process of micro insurance policies so that they would be able to choose.
“We want more knowledge and understanding on insurance, so we can also insure our animals against diseases and also our maize fields,” he said.
It is hoped that farmers and small scale entrepreneurs will be able to recover after the loss of the property either through a fire or drought as long as they acquire the insurance policy of their choice.
The FLW commemoration was a collaboration of Government and various stakeholders that include Bank of Zambia, Pensions and Insurance Authority, Securities and Exchange Commission, Non-Financial Institutions, Cooperating Partners, and Non-Governmental Organisations.

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