By CHILA NAMAIKO –

THE Bank of Zambia (BoZ) has challenged lending institutions to translate deposits into investment capital to support business activities and foster economic growth.
BoZ deputy governor Bwalya Ng’andu said financing rural businesses among banks should be about empowering the Small and Medium Entrepreneurs (SMEs) with capital.
He said that such sub-sectors were not widely favoured by commercial banks because of being associated with high risk of failure.
“The fact, however, is that the engine of sustained inclusive growth and job creation lie in SMEs and emerging businesses,” he said.
He was speaking in Monze on Tuesday at the launch of Finance Bank Zambia (FBZ) branch at Rusangu University premises.
Dr Ng’andu urged the banks to desist from using rural areas as deposit mobilisation centres from which to raise resources for exclusive lending to activities in the urban areas.
He said banks should build more sound and viable loan mechanisms to enable people tap various business opportunities.
FBZ managing director Barkat Ali said the bank would before the end of this year, open up eight more new outlets spread across the country.
These are Embassy Mall in Lusaka, Mumbwa Mababe, Mumbwa Ndeke, Chambeshi, Mansa, Lundazi, Chililabombwe and Mongu.
The bank also sets to increase its Automated Teller Machines (ATMs) footprints this year to 150 from 137.
It has recorded rise in the number of active customers to 152,000 as at May 31, 2015 from 145,000 on December 31, 2014 while the deposit base has grown to K2.470 billion as at December 31, 2014.