The Bankers Association of Zambia (BAZ) has called on the President-elect Hakainde Hichilema and his soon to be constituted government team to create stable and sound micro economic policies that will help stabilize the inflation rate, or bring it back to stability within the medium term.
BAZ chief executive officer Leonard Mwanza said President-elect Hichilema and his government should also focus on transforming the economy and bringing back fiscal fitness that will ensure a sound economic system as well as stabilizing the key levers of the economy which are are inflation, exchange rate and interest rates to enable businesses to plan long term.
Speaking in an interview with the Zambian Business Times – ZBT, Mwanza said the association was looking forward to seeing the Kwacha stability, enhanced fiscal controls and sound policies that will support businesses to thrive.
He said BAZ was further looking forward to the country going into an International Monetary Fund (IMF) programme to help the country to handle its debt situation.
“We as an association would like to first of all congratulate the President-Elect, His Excellency Hakainde Hichilema for being elected as the 7th President of the Republic of Zambia; his resounding victory shows the high expectations and confidence from the Zambian people.
“The key levers of the economy are inflation, exchange rate and interest rates and these are a reflection of what is happening in the economy. So our biggest call from the banking sector is to say we need stable sound economic policies that will help to stabilize inflation or reduce it within the medium term target, stabilize the exchange rate so that businesses can plan long term,” Mwanza said.
He explained that, “We look forward to the country going into an IMF programme that will help the country to at least handle its debt situation. Once the IMF brings in its support, we expect that the commercial lenders and the Eurobond holders will also talk to us to provide some relief so we look forward to the conclusion of the discussions considering that the IMF made a commitment to walk with us.
Mwanza said this will help to drive the economy forward and once the policies are well aligned with business expectations especially the private sector, then banks can continue to provide support to all key sectors of the economy within a stable economic policy environment.
“I think the ultimate go is to create a thriving private sector which will in turn facilitate the enhancement of revenue collection, help enhance the creation of new jobs and growing the economy. A growing economy improves the businesses environment, which in turn helps to improve people’s livelihoods.
“What is important now is transforming the economy, bringing back fiscal fitness, and whatever we are going to do, we should ensure that we have a sound economic system, we should work towards sound policies that support business to thrive and we want the private sector to help drive the economy forward,” he said.
Mwanza said the focus should be ensuring that the government provides the correct policy environment and the correct fiscal positions that will help to drive the wheels of the economy into a positive trajectory.
He assured the President-elect that the association would continue with its financial intermediary role in the banking sector.
“In congratulating him, we expect that his focus will be on microeconomic stability which is very key, improvement of people’s livelihoods also is very key and creating a platform in which all Zambians can freely participate and be given opportunities to realize their dreams.
“As BAZ, we are there to transform and help to develop the country by ensuring that we provide the means through which the wheels of the economy flows. We will continue to offer innovative, efficient and reliable payment platforms, ensure that we collect people’s funds and keep them safe as we provide credit to all key sectors of the economy,” Mwanza added
