By JAMES MUYANWA  –

in NCHELENGE
FINANCE Minister, Alexander Chikwanda, has said the government will only borrow up to K1 billion locally next year to help reduce the current high lending interest rates being charged by the financial institutions.
Mr Chikwanda said here yesterday that currently, the interest rates being charged by commercial banks and other financial institutions are too high, hence the need for measures to change that.
He said this during the commissioning of the new building for the National Savings and Credit (NATSAVE) bank here.
Mr Chikwanda said to ensure the availability of resources for local borrowers, the government would next year only borrow up to K1 billion from domestic lenders while the rest of the fiscal deficit would be financed externally.
This, Mr Chikwanda said, would ultimately result in low interest rates because the banks and other lending institutions would have more money to lend out.
Further, the situation would help the economy to grow.
Mr Chikwanda said the government was projecting to double NATSAVE branches from the current 35 to 70 by 2018 as a way of leading by example in financial inclusion.
He said Nchelenge was primed for transformation from a predominantly fishing area to the hub of agriculture in Luapula Province.
Mr  Chikwanda said over the years the agricultural activities in the district have now taken a centre stage, what with the massive expanse of water provided by Lake Mweru and other smaller water bodies.
He called for agro diversification in the district and that on comparative advantage basis, the area was not suitable for cultivation of maize.
The district has massive potential in sugarcane plantation offered by the lake and tourism.
Nchelenge NATSAVE branch was opened in 2003 and has operated in a rented building since then and the construction of its own building is a sign that the bank is in the district to stay.
He said the bank’s Bunjime Asset Plus Loans would go a long way in developing small scale entrepreneurs.
Earlier, NATSAVE managing director, Cephas Chabu said the bank had spent K3.5 million in the construction of the new Nchelenge branch.
“Nchelenge branch as at October 31, 2015 held saving deposits amounting to K7,577,521 made up of 7,674 accounts,” he said.
As for the loan assets the bank has given out 698 loans worth almost K5 million.