By MAIMBOLWA MULIKELELA and HELLEN ZULU-
THE Citizens Economic Empowerment Commission (CEEC) has disbursed K40.379 million to 801 projects as at June 30, 2014, against the approved K98.148 million for 1,526 projects.
CEEC head of communication and public relations Glenda Masebe said the commission paid out a total of K40, 378,956.44, against the K98, 148,069.80 approved for the empowerment fund.
Ms Masebe explained that the empowerment funds disbursed were meant for the 2013 value-addition projects.
In an interview, Ms Masebe said of the 801 projects, 72 were under project finance with a loan value of K21, 504,286.12, while 729 were under micro finance with a loan value of K18, 874,670.32.
The project finance loans are meant for processing Soya beans, mangoes, cotton and groundnuts, among others.
“The commission disbursed K18, 874, 670.32 for 729 microfinance loans as at the end of the quarter under review.
“These included mostly trading loans for fish, groundnuts, cotton, timber, soya beans, rice, honey, pineapple, cassava, poultry mango and beef to micro entrepreneurs in all the 10 provinces,” she said.
Ms Masebe said the slow movement on the disbursement of project finance which account for about 70 per cent of loans was due to lack and inadequate security being pledged by the promoters, particularly for the rural districts.
“The majority of promoters were either pledging for security properties whose values are significantly lower than the loan amount or untitled traditional land upon which the Commission cannot create mortgages,” she said.
On the loan repayment, the commission recovered a total of K3, 339,522.21 against the target of K4, 800,000.00 during the second quarter.
Ms Masebe said the quarterly collection accounted for 70 per cent of the target, saying that the total cumulative collections since inception add up to K73.7 million up from the K70.4 million in the previous quarter.
“The total cumulative collections when measured against the total amount due of K173 million, translates into a repayment rate of 43 per cent,” she said.
Meanwhile, the CEEC is in the process of acquiring loan management software for efficient portfolio analysis and reporting.
The commission presently has a loan book of 3,000 clients that is anticipated to grow to 15,000 over the next five years.
According to a statement issued in Lusaka, the commission wants to acquire the loan management software for efficient portfolio analysis and reporting.
The statement said the process of acquisition was currently at bidding stage.
The loan management software already in use in the Zambia financial market would be preferred.
“The commission presently has a loan book of 3,000 clients that is anticipated to grow to 15,000 over the next five years.
“The commission now wishes to acquire loan management software for efficient portfolio analysis and reporting,” reads the statement.
According to the statement the system will be installed at CEEC head office in Lusaka as well as at each of the commission’s provincial offices across the country.