Copperbelt-based Economist and Policy Analyst, John Ng’andu has indicated that Zambia’s high lending rates are a direct reflection of inflation, loan defaults, government borrowing costs and structural inefficiencies within the financial sector. Speaking in an interview with Zambian Business Times – ZBT, Ng’andu said while borrowers in the United States and Europe can access credit at between 4 and 9%, many Zambians are borrowing at rates ranging from 25% to as high as 45%. “The challenge has become so severe that the Bank of Zambia (BoZ) recently raised concern over growing loan defaults among civil servants, with many workers reportedly...
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