Business News

Mon, 15 May 2017 10:01:23 +0000

Technology drives revenue growth for banks – expert 

BY MAILESI BANDA

TECHNOLOGY and innovation present banks with not only great opportunities to enhance their products and services but also helps in driving revenue growth, PriceWatersCoopers financial service leader Andrew Chibuye has said.

Mr. Chibuye said technology created a chance to improve efficiency in the banking sector.

Speaking in an interview with the Daily Nation, Mr Chibuye said the integration of technology into the banking business would empower the banks in the provision of quality goods and services.

“The integration of technology and innovation in the banking business will help in the usual operations while improving productivity of the members of staff and will lead to the promotion of quality service delivery,“ he said.

He applauded the banks that had embraced the use of technology, adding that it had led to the sector being efficient in service delivery.

He explained that the recent economic problems had presented banks with significant challenges that, however, offered opportunities for learning, adapting and innovation.

He said the year 2017 presented an opportunity for the banking sector to grow, adding that the players in the banking sector needed to take advantage of that potential.

“It is generally believed that the economy is on the path to recovery and with this in mind it is the right time for the industry to take a critical look at the efficiency of its operations,“ he said.

He noted that the year 2016 had challenges that included credit risk liquidity, risk cyber security and interest rate fluctuations adding that the year 2017 offered an opportunity for the banking sector to rise above these challenges.

Better Now Finance better than ever

By BUUMBA CHIMBULU

BETTERNOW Finance Company (BFC), a Zambian micro finance business, recorded positive growth in 2016 with an increase of 130 percent in operating income.

Operating income is a measure of a company’s profit from ordinary operations, excluding interest and tax. Speaking at the company’s 5th annual general meeting in Lusaka recently, BFC chairman of the board of directors, Morris Mulomba, said the business recorded positive growth in 2016.

Mr Mulomba explained that the company’s operating income in 2016 grew by 130 percent from K3, 538,000 to K8, 125, 000 recorded in 2015.

“The company’s performance had made remarkable turn-around and we are on course towards realising our vision of being the market leader by ensuring that Zambian entrepreneurs are financially included and empowered,” he said.

He also announced that during the year under review, shareholders’ funds grew by 61.6 percent to K5, 808,000 from K2, 231,000 in 2015.

Mr Mulomba attributed the development to the increased capital injection by shareholders.

He further said BFC’s client base during the period under review registered growth from both returning and new customers.

He explained that the company’s active customer base grew by 22 percent to 266 in 2016 from 81 recorded in 2015.

“It is worthy to note that the company was able to turn-around from a loss position of K699, 000 to a net profit of K1, 428, 000. The assets and liabilities grew by 91 percent from K11, 183, 000 to K21, 353, 000 as at December 31, 2016,” he said.

On group operating income, Mr Mulomba said BFC posted a 142 percent growth from K4, 227, 000 to K10, 233, 000, with its Solwezi branch contributing 25 percent, amounting to K2,519,000 million. He explained that the group net profit closed at K1, 930, 000 up from a loss of K267, 000 while its balance sheet grew by 134 percent.

Mr Mulomba said BFC believed that 2017 would be a year of consolidating and sustained growth considering the strides achieved in 2016.

He said BFC was poised to return to the market through issuance of a commercial paper in June this year to the tune of K45 million primarily to support growth of its loan book portfolio in its chosen markets.

Mr Mulomba explained that that came as a result of an over-subscribed commercial paper of K10 million.

Early savings secure your future, youths told

 By SIMON MUNTEMBA

STANDARD Chartered Bank Zambia has urged the youth in Zambia to learn to save and invest from an early age so that they become financially stable in future.

Speaking during the Goal Financial Literacy Training held at Mukoko grounds in Lusaka’s Kamanga township on Saturday, head of financial institutions and development organizations for Standard Chartered Bank Farida Mukasa, said youths must know how to save and invest from an early age to secure their future.

Ms Mukasa said her organization was targeting the young people in order to build the culture of financial management at an early age.

“We at the bank believe that building financial capability amongst the youth has a positive economic impact on the country,” she said.

She noted that if youths built a culture of saving amongst themselves, the country was likely to have citizens who were knowledgeable with savings and financially responsible.

Ms Mukasa disclosed that the bank’s aim was to empower young Zambian girls with life education skills using the power of sports.

Youths should not wait until they had more or made extra money to start saving, ‘‘but find a way to trim a few small things from their budget and put aside a few Kwachas every month’’.

She said basic skills on financial management, how to save and why it is important to save were amongst other key lessons her team were teaching the youth.

Ms Mukasa urged youth to take keen interest in learning how to save to make informed financial choices.

“We are here to celebrate the Goal Girl’s programme which empowers young Zambian girls with life and education skills using the power of sport and more importantly, we are here to empower them,” Ms Mukasa said.

She called on all key stakeholders to join and take a joint responsibility to empower Zambian youths.

“I would like to make a joint call to all stakeholders to join up and take joint responsibility to empower Zambian youths to enable them make informed financial choices,” she said.

And speaking on behalf of the area Member of Parliament, Nkandu Luo, Chakunkula Ward 32 councillor Smart Mwitwa thanked Standard Chartered Bank Zambia for the gesture and urged the bank to continue supporting the youths in the country.

“We really thank you for the gesture which seeks to empower adolescent girls through sport and life skills with a focus on communication, health, rights and financial literacy. Please continue with the good work you are doing,” Mr Mwitwa said.

The Goal financial literacy training programme which attracted more than 300 girls aged between 12 and 22 years was coordinated by Nowspar.

Company supports 2,200 farmers  grow legumes 

By BUUMBA CHIMBULU

A LOCAL firm, Zasaka Agro of Chipata, is currently working with 2,200 small scale farmers to grow legumes while assisting them generate income by diversifying their crop portfolio.

Zasaka Agro co-founder, Sunday Silungwe, said the company worked with small-scale farmers to increase incomes and diversify crop options, among them maize and legumes.

“Legumes are highly nutritious and they are in high demand in our country. A 2015 study showed that production of legume seed only met 50 percent of demand. Firstly, our model works with farmers by training,

“We have a model that recognizes small-scale farmers to become local extension officers and each extension officer is working with a group of 40 farmers. We also loan seed to the farmers with a flexible repayment plan that allows farmers to pay with seed,” he said. Mr Silungwe said in an interview that the company was also creating and providing a market for all additional seed produced which were packaged and sold under the brand, ‘‘Good Nature Seed’’.

He said the institution had since managed to increase incomes on a hectare for 2,200 farmers, adding that incomes had increased from US$150 on maize to US$400 on legumes.

Mr Silungwe emphasised that the company would this year target 5,200 farmers.