GOVERNORS MONTHLY MEETING WITH COMMERCIAL BANKS CHIEF EXECUTIVES

BANK of ZAMBIA

GOVERNORS MONTHLY MEETING

WITH CHIEF EXECUTIVE OFFICERS OF
COMMERCIAL BANKS

Bank of Zambia Boardroom

JULY 2010

GOVERNORS MONTHLY MEETING WITH COMMERCIAL BANKS CHIEF EXECUTIVES

1.0

INTRODUCTION
This report reviews the Bank of Zambias implementation of monetary
and supervisory policies and their outcomes during the month of June
2010, as well as real and external sector developments. The report also
provides an inflation outlook for August 2010.

2.0

MONETARY AND ECONOMIC DEVELOPMENTS IN JUNE 2010

2.1

MONETARY DEVELOPMENTS
The focus of monetary policy in June 2010 continued to be the
achievement of the end-year annual inflation target of 8.0%. To achieve
this, the Bank of Zambia relied mainly on Open Market Operations and
the auctioning of Government securities in order to maintain reserve
money within the programmed growth path. This was complimented by
prudent fiscal policy management. Consistent with this, overall inflation
in June was programmed at 7.7% under the Extended Credit Facility
arrangement, while the BoZ projection was 8.2%.

2.1.1

Inflation

During the month under review, the annual overall inflation rate
decreased by 1.3 percentage points to 7.8% (May 2010: 9.1%). This was
mainly on account of the fall in annual food inflation to 3.8% from the
6.5% recorded in May 2010. However, the annual non-food inflation rate
rose to 11.8% (May 2010: 11.6%). Of the total 7.8% annual inflation
outturn, food products accounted for 1.9 percentage points while nonfood products accounted for 5.9 percentage points. The annual overall
inflation outturn was 0.4 percentage points below the BoZ projection of
8.2% for the period.
Monthly food inflation declined to negative 1.6% (May 2010: negative
0.1%), due to the reduction in prices of various food items during the
crop marketing period. Lower prices were observed on maize grain,
breakfast and roller meal, rice, millet, sorghum, sweet potatoes,
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GOVERNORS MONTHLY MEETING WITH COMMERCIAL BANKS CHIEF EXECUTIVES

groundnuts, cabbage, tomatoes, onions, carrots, green beans, rape,

Chinese cabbage, peas, dried beans, fillet steak, mixed-cut beef, T-bone,
beef sausages, pork sausages, mutton and dried kapenta
(Mpulungu/Siavonga).
2.1.2

Broad Money and Domestic Credit1

Preliminary estimates indicate that monthly growth in broad money

(M3), comprehensively defined to include foreign currency deposits,
increased to 6.7% in June 2010 (May 2010: 2.6%). This outturn was
mainly due to a rise in both Net Foreign Assets (NFA) and Net Domestic
Assets (NDA). In absolute terms, M3 rose to K16,725.9 billion from
K15,682.5 billion in May 2010.
The NFA edged up by 6.8% (May 2010:1.8% rise), contributing 2.6
percentage points to M3 growth. The increase in the NFA was mainly due
to the depreciation of the Kwacha against the United States (US) Dollar
in the month under review. Similarly, NDA expanded by 6.5% (May
2010: 3.1% rise), contributing 4.0 percentage points to M3 growth in
June 2010. The developments in NDA reflected the continued growth in
lending to the government with overall credit to the private sector
(including public enterprises) contracting by 2.6% in the month under
review. Excluding foreign currency deposits which increased by 13.3%,
money supply increased by 3.3% to K10,714.1 billion in June 2010 (May
2010: 7.4% increase).
On an annual basis, M3 growth increased to 27.9% compared to a revised
figure of 24.4% in May 2010. This performance was mainly due to the
increase in NDA, as NFA declined. NDA expanded by 60.9% in the
month under review and contributed 29.7 percentage points to M3
growth. On the other hand, NFA declined by 3.4% and contributed
negative 1.7 percentage points to the M3 outturn. Excluding foreign
currency deposits which increased by 18.6%, money supply increased by
33.8%.

Preliminary data for June 2010 shows that monthly growth in domestic
credit, comprehensively defined to include foreign currency loans, was
1

Figures for broad money and domestic credit are estimated.

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GOVERNORS MONTHLY MEETING WITH COMMERCIAL BANKS CHIEF EXECUTIVES

3.3% (May 2010: 4.4%). In absolute terms, outstanding domestic credit

was K13,337.2 billion (May 2010: K12,908.3 billion). The increase in
domestic credit was due to the continued expansion in lending to
government which grew by 14.2% and contributed 5.0 percentage points
to domestic credit outturn in the month under review. On the other hand,
credit to the private sector (including public enterprises) fell by 2.6% and
contributed negative 1.7 percentage points to the domestic credit outturn
in June 2010. Excluding foreign currency denominated credit, domestic
credit growth was 1.7% in June 2010 (May 2010: 3.1%).
On an annual basis, domestic credit growth increased to 20.1% in June
2010 (May 2010: 14.9%). The outturn largely reflected the rise in credit
to Government by 104.5%, which contributed 23.9 percentage points to
annual credit growth. However, lending to the private sector (including
public enterprises) declined by 4.9% and contributed negative 3.8
percentage points to annual credit outturn. Excluding foreign currency
denominated credit, annual domestic credit growth fell to 26.2% (May
2010: 28.4%).
2.1.3

Interest Rates
Commercial Banks Interest Rates

During the month under review, developments in the commercial banks

nominal interest rates were mixed. The Weighted Average Lending Base
Rate (WALBR) maintained its downward trend, falling marginally to
21.0% (May 2010: 21.3%). The Average Lending Rate (ALR) also fell
marginally to 28.0% in June 2010 (May 2010: 28.2%). However, the 30day deposit rate for amounts exceeding K20 million and the Average
Savings Rate (ASR) for amounts above K100, 000 remained unchanged
at 5.6% and 4.7%, respectively.

Following the decline in inflation in June 2010, the ALR rose to 20.2%
(May 2010:19.1%) while the real WALBR rose to 13.2% (May
2010:12.2%). Similarly, the real ASR for amounts above K100,000.00
and the real 30-day deposit rate for amounts above K20 million improved
to close at negative 2.2 % (May 2010: negative 3.5%) and negative 3.1%
(May 2010: negative 4.4%).

2.2 GOVERNMENT SECURITIES MARKET DEVELOPMENTS

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GOVERNORS MONTHLY MEETING WITH COMMERCIAL BANKS CHIEF EXECUTIVES

2.2.1 Government Securities Transactions

During the month under review, the demand for Treasury bills continued
to be strong. Nonetheless, investors rate of subscription for Treasury
bills was recorded at 104.3% (May 2010:126.8 %). In contrast, the
Government Bond auction was undersubscribed recording a subscription
rate of 77.4% (May 2010: 119.3%).
Out of a total of K400 billion worth of Treasury bills on offer, the market
submitted bids worth K417.5 billion out of which K323.3 billion were
successful. With maturities standing at K386.2 billion, a deficit of K44.6
billion was realized in Treasury bills, thereby decreasing the total bills in
circulation by 1.7% to K4,288.6 billion (May 2010: K4,360.4 billion).
A total of K45.5 billion was sold at the monthly bond auction, in line
with the tender invitation of K120 billion. With the periods total bond
maturities amounting to K53.42 billion, the auction resulted in a deficit
of K7.9 billion. Accordingly, total bonds in circulation declined by K96.4
billion to K5,311.5 billion at face value.
2.2.2 Yield Rate Movements
The composite yield rate for Treasury bills gained 68 basis points to close
at 6.3%. In contrast, the composite yield rate for Government bonds lost
382 basis points to close at 9.5%.
2.3 FOREIGN EXCHANGE MARKET DEVELOPMENTS
2.3.1 Exchange Rate Developments
During the month under review, the Kwacha made losses against major
trading currencies. The weakness of the Kwacha was due to lower copper
prices, global risk aversion emanating from the debt crisis in the euro
zone and the resulting broad-based strength of the dollar across the board.
Accordingly, the local currency depreciated by 3.5%, 3.6%, and 2.3% to
settle at monthly averages of K5,122.9/$, K7,518.6/ and K664.8/ZAR
against the US dollar, pound sterling and rand, respectively. Against the
euro, the Kwacha depreciated slightly by 0.004% to close the month at
K6,264.2/.
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GOVERNORS MONTHLY MEETING WITH COMMERCIAL BANKS CHIEF EXECUTIVES

2.3.2 Volume of Transactions

The volume of foreign exchange traded in the interbank market during
the month of June increased to US$384.6 million (May 2010: US$356.3
million). Commercial banks made net spot sales of foreign exchange
from the non-bank public in June of US$25.8 million, compared to net
purchases of US$25.7 million in May. Commercial Banks net sales of
foreign exchange to bureaux de change increased to US$21.6 million
(May 2010: US$14.1 million).
2.4 REAL SECTOR DEVELOPMENTS
2.4.1 Agriculture
Major Millers Maize Stocks
The stock of maize grain held by major millers in the country rose by
15.9% to 45,336.7metric tons (mt) as at 29th June 2010 (May 2010:
39,093.2 mt). In terms of holdings by province, Lusaka contributed
26,094.7 mt (57.6%), Copperbelt 13,305.0 mt (29.3%), Southern 5,537.0
mt (12.2%), and Northern 300.0 mt (0.7%), respectively while Eastern
province accounted for 100.0 mt (0.2%). Data on maize stocks from
Central province was not available on the reporting date.
2.4.2
Mining
Preliminary estimates show that copper output increased by 20.8% (May
2010: 3.1% increase) to 71,957.4 mt in June 2010 from the 59,542.8
reported in the previous month. Further, this output was 13.9% higher
than the 63,142.0 mt produced in the corresponding month of 2009. On a
year-to-date basis, production of finished copper at 377,265.4 mt was
11.2% above the output (339,372.5 mt) for the first half of 2009.
In addition, cobalt output rose by 13.5% (May 2010: 23.1% increase) to
847.4 mt during the month under review from 746.3 mt produced in May
2010. Further, this output was 139.2% higher than the 354.3 mt of output
registered in June 2009. On a year-to-date basis, cobalt output rose by
111.5% to 4,160.8 mt from 1,967.6 mt produced during the first six
months of 2009.
2.4.3

Manufacturing
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GOVERNORS MONTHLY MEETING WITH COMMERCIAL BANKS CHIEF EXECUTIVES

During the month under review, production of cement by Lafarge Zambia

Plc increased by 5.3% (May 2010:14.9% increase) to 66,641.0 mt from
63,276.0 mt the previous month. This level of output was 19.0% higher
than 55,982.0 mt produced in June 2009.
Production of milk by Parmalat Zambia Ltd fell by 2.l% (May 2010:
4.5% increase) to 2,504,388.0 litres from 2,557,642.0 litres in May 2010.
However, this output was 5.2% higher than the 2,381,029.0 litres of milk
produced in June 2009.
Production of clear beer by Zambian Breweries Plc increased by 26.8%
in June 2010 (May 2010:11.3% increase) to 70,667.0 hectolitres from
55,749 hectolitres produced in the previous month. Moreover, this output
was 50.6% higher than the 46,920 hectolitres produced in June 2009.
The production of soft drinks by Zambian Breweries Plc fell by 11.4%
(May 2010:2.3% decrease) to 38,053 hectolitres from 42, 937 hectolitres
recorded the previous month. However, this level of output was 59.9%
higher than the 23,792 hectolitres recorded in the corresponding month of
2009.
During the month under review, output of opaque beer by National
Breweries Plc declined by 2.1% (May 2010:10.4% increase) to
16,471,133.8 litres from 16,816,956 litres produced in May 2010.
However, this output was 13.7% higher than the 14,486,812 litres of
output recorded in the corresponding month of 2009.
2.5
2.5.1

EXTERNAL SECTOR DEVELOPMENTS

International Trade

Preliminary data indicate that Zambias international trade performance

during the month of June deteriorated marginally. The overall
merchandise trade surplus narrowed to US $51.6 million in June 2010
(May 2010: US $52.0 million). This was on account of a rise in the
merchandise imports bill which was higher than the rise in merchandise
export earnings.
Merchandise imports grew by 1.5% to US $443.8 million in June 2010
(May 2010: US $437.2 million). The rise in import bills of commodity
groups such as petroleum products (17.1%), fertiliser (11.2%), plastic and
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GOVERNORS MONTHLY MEETING WITH COMMERCIAL BANKS CHIEF EXECUTIVES

rubber products (4.6%), and iron and steel and items thereof (2.5%)
explained this outturn.
Merchandise export earnings rose by 1.3% to US $495.4 million (May
2010: US $489.2 million). This followed an increase in metal exports,
which was moderated by the decline in non-traditional export earnings
during the month under review. Metal export earnings grew by 6.1% to
US $398.5 million (May 2010: US $375.5 million). The increase was
attributed to the rise in copper export earnings which outweighed the
decline in cobalt export earnings.
Copper export earnings rose by 7.8% to US $374.1 million (May 2010:
US $346.9 million), due to an increase in the export volumes by 14.4% to
60,455.55 metric tonnes (mt) (May 2010: 52,839.75 mt). The realised
price of copper, however, declined by 5.8% to US $6,187.71 per ton (US
$2.81 per pound) in June (May 2010: US $6,565.33 per ton (US $2.98
per pound)). The decline in the realised price reflected the slide in copper
prices on the international market during this period.
During the same period, cobalt export earnings fell by 14.7% to US $24.4
million (May 2010:US $28.9 million), following a decline in both the
export volumes and the realised price. Cobalt export volumes declined by
10.3% to 691.50 mt (May 2010: 771.33 mt). Similarly, the realised price
of cobalt fell by 5.8% to US $35,263.26 per ton (US $16.00 per pound)
(May 2010: US $37,415.26 per ton (US $16.97 per pound).
In the month under review, non-traditional export earnings declined by
14.8% to US $96.9 million (May 2010: US $113.7 million). This was
largely explained by a decline in earnings associated with the export of
cane sugar, burley tobacco, fresh flowers, cement & lime, fresh fruits and
vegetables, electricity, and gemstones. An increase however, was
recorded in the export of copper wire, electrical cables, gas and
petroleum oils, and wheat and insulin.
On a year-to-date basis, Zambia recorded a merchandise trade surplus of
US $632.5 million compared with a deficit of US $111.2 million recorded
during the same period in 2009. An increase in merchandise export
earnings, which outweighed the rise in the merchandise imports bill,
explained this outturn.
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GOVERNORS MONTHLY MEETING WITH COMMERCIAL BANKS CHIEF EXECUTIVES

During the same period (January to June), merchandise export earnings

more than doubled to US $3,198.9 million from US $1,558.0 million
recorded over the same period in 2009. This performance largely
reflected the rebound in metal export earnings after the global economic
crisis. Metal export earnings more than doubled to US $2,624.0 million
from US $1,201.8 million recorded over the same period last year. This
was largely due to the 77.5% rise in the average realised price of copper
to US $6,625.35 per ton from US $3,732.66 per ton. The rise in global
demand for metals resulting from the recovery from the global economic
and financial crisis, explained this outturn. In addition, increased copper
and cobalt export volumes contributed to the rise in metal export
earnings.
Copper export volumes grew by 19.4% to 372,390.4 mt (January to June
2010) from 311,933.13 mt recorded over the same period in 2009, while
cobalt export volumes more than doubled to 4,018.0 mt from 1,948.50
mt. Increased production arising from increased capacity utilisation at
various mines explained this outturn.
Similarly, non-traditional export earnings rose by 61.4% to US $574.8
million (January to June) from US $356.2 million recorded over the same
period in 2009. Increased exports of copper wire, cane sugar, cotton lint,
burley tobacco, electrical cables, electricity, gasoil, gemstones, maize and
wheat explained this outturn. Increased production of these products,
coupled with an improvement in international commodity prices,
following the recovery of most economies from the global economic
crisis, explained this outturn.
During the same period (January to June), merchandise imports grew by
53.7% to US $2,566.3 million from US $1,669.2 million recorded during
the corresponding period in 2009. This was largely explained by a rise in
import bills associated with such commodity groups as petroleum
products, fertiliser, chemicals, plastic and rubber products, paper and
paper products, iron and steel and items thereof, industrial boilers and
equipment, electrical machinery and equipment and vehicles. Imports
increased following the recovery of the economy from the impact of the
global economic crisis.
2.6 FINANCIAL SECTOR DEVELOPMENTS
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GOVERNORS MONTHLY MEETING WITH COMMERCIAL BANKS CHIEF EXECUTIVES

2.6.1 Overall Performance of the Banking Sector

The overall financial condition of the banking sector in June 2010 was
satisfactory. On aggregate, the banking sector was adequately capitalized
and the liquidity position, earnings performance and asset quality
remained satisfactory.
The banking sectors total assets increased by 4.0% to K20,703.3 billion
as at end -June 2010, with the increase largely being funded by total
deposit liabilities which went up by 5.8% to K15,394.7 billion. The
sectors total assets continued to be dominated by net loans and advances
and investments in Government securities at 35.5% and 22.3%
respectively, (May 2010: 36.5% and 23.5% , respectively).
The total liabilities and shareholders funds continued to be dominated by
total deposits at 74.4% (May 2010: 73.1%).
The sectors aggregate capital adequacy ratios remained the same as in
May 2010 at 19.6% and 23.1% and were well above the regulatory
minimum ratios of 5% and 10%, for primary regulatory capital and total
regulatory capital, respectively.
In the month under review, the asset quality of the banking sector was
satisfactory, although the gross NPL ratio2 (a key indicator of the banks
asset quality) marginally deteriorated to 15.2% (May 2010:15.0%). On
the other hand, the net NPL ratio3 marginally improved to 3.4% (May
2010: 3.5%). The deterioration in the gross NPL ratio was largely on
account of an increase in the gross non performing loans by K31.5 billion
(2.5%). Further, the NPL coverage ratio4 improved to 80.4% (May 2010:
79.4%). The improvement in the net NPL ratio and the NPL coverage
ratio was due to a proportionately higher increase in the allowance for
loan losses which went up by K38.0 billion (3.9%) to K1,020.2 billion
compared to the increase in the gross non-performing loans.
The overall earnings performance of the banking sector for the month
under review improved slightly. The sectors total operating income
increased by 1.7% to K253.1 billion mainly on account of an increase in
2This is the ratio of gross non-performing loans to total gross loans.
3 This is the ratio of net non-performing loans to net loans.
4 This is the ratio of the allowance for loan losses to gross non-performing loans.

GOVERNORS MONTHLY MEETING WITH COMMERCIAL BANKS CHIEF EXECUTIVES

un-realized trading gains and other non-interest income compared to the

previous month. As a result, the sectors profit before tax increased by
17.0% to K34.5 billion (May 2010: K29.5 billion). However, the sector
recorded a loss after tax of K0.6 billion (May 2010: K20.5 billion profit
after tax).
The banking sectors overall profitability as measured by the return on
assets and return on equity, was at 2.5% and 12.6% (May 2010: 2.5% and
13.2%), respectively.
The banking sectors liquidity position remained satisfactory, with the
ratio of liquid assets to total deposits and short-term liabilities and the
ratio of liquid assets to total assets increasing to 50.9% and 41.6% (May
2010:49.0% and 39.8%), respectively.
2.6.2 Developments in the Non-Bank Financial Sector
2.6.2.1 Overall Performance of the Non-Bank Financial Institutions Sector

The overall financial performance and condition of the NBFIs was rated
marginal during the month under review. On average, the microfinance
institutions and bureaux de change sub-sectors reported adequate capital,
fair asset quality and liquidity position while the earnings performance
was rated marginal. However, four leasing finance companies, one
building society and one credit and savings institution had regulatory
capital deficiencies.

2.6.2.2 Financial Sector Development Plan (FSDP)

During the month under review, the FSDP Secretariat embarked upon
finalising the work plans and budgets for the six working groups, whose
Chairpersons and Vice Chairpersons were elected in the previous month.
Working Groups are expected to meet monthly commencing June 2010
and the finalisation of work plans sets the ground for activities to
commence in earnest under the FSDP Phase II.
2.6.3.2 Update on the Operations of Credit Reference System
Following the meeting that the Credit Reference Bureau Africa Limited
(CRBAL) held with chief executive officers of banks and their credit
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staff on 2 June 2010, CRBAL has reported an improvement in

submission of credit reports by the banking sector. The BoZ notes that
CRB and BAZ are working together to resolve issues rose during the
meeting.
The total number of reports searched by the banking sector increased by
5% to 4,113 (May 2010: 3,904). The total number of searches conducted
by the banking sector also increased 353% to 158,822 (May 2010:
35,022). Meanwhile, the number of banks that submitted credit data to
CRBAL during the month increased by 5 to 11 (May 2010: 6). The
number of banks that searched the CRBAL increased by 2 to 15 (May
2010: 13).
2.7

DEVELOPMENTS
IN
PAYMENT SYSTEMS

BANKING,

CURRENCY

AND

2.7.1 Performance of the National Payment System

The volume and value of transactions processed through ZIPSS increased
by 9.8% and 53.8% to 14, 326 (May 2010: 13,051) and K23,790 billion
(May 2010: K15,468 billion) respectively.
The volume and value of transactions on the four retail payment systems,
namely Physical Interbank Clearing (PIC), Direct Debits and Credits
Clearing (DDACC), Automated Teller Machines (ATMs) and Points of
Sale (PoS), increased by 11.1% and 10.8% to 2,574,776 (May:
2,317,688) and K3,459 billion (May 2010: K3,121 billion) respectively.
The increase in volume and value of both the large value and retail
payment streams is attributed to the commencement of the crop
marketing season.

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3.0

INFLATION OUTLOOK FOR AUGUST 2010

Inflationary pressures in the month of August 2010 are expected to ease
on account of the availability of carry-over stocks of various food items
from the 2009/10 bumper crop harvest. However, this may be partially
off-set by pass-through effects of the exchange rate depreciation of the
Kwacha against the US dollar.
At the beginning of the year, a monthly inflation path for the year was
drawn up, consistent with the end-year inflation target of 8%. Under this
original path, the overall inflation projection for August 2010 was 7.6%,
with food inflation projected at 3.2% and non-food inflation projected at
12.0%.
The BoZ overall inflation forecast, which indicates the estimated
inflation outturn taking into account recent developments in the
economy5, projects the annual inflation rate for August 2010 at 7.0%.

This forecast is based on the Bayesian Vector Autoregressive model, depicting the exchange rate, money supply, fuel price
and maize price as the variables that have the key information on the inflationary process. In addition, past trend analysis
and judgment is an integral part of the forecast.

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4.0

ANNOUNCEMENTS AND AREAS OF CONCERN

4.1

Cheque Truncation
The Bank is concerned about the little progress being made on the
implementation of the Cheque Truncation project, which has taken rather
too long. The Bank wish to appeal to BAZ once more to look into this
matter and expedite the process.

4.2

Handling of Captured Automated Teller Machines Cards (ATMs)

The Bank is still waiting for banks to submit a finalised policy on
handling of cards captured ATM cards for the consideration of the Bank.
The Bank would therefore like to urge banks to conclude this matter
urgently.

4.3

ATM Transaction Charges

Once again, we want to take this opportunity to reiterate our concern over
the issue of charges for cash withdraws on ATMs. For instance some
banks have given a limit of K10 million for ATM transactions. To
withdraw such an amount customers have to withdrawal 5 times and end
up being charged for each withdraw. This is a structural matter which
banks should look into as a matter of urgency. The publics outcry on the
matter is testimony to that.

4.4

Frauds At Atms And Point Of Sale Machines

The Bank is keenly following the reported suspicious transactions on

some customer accounts involving ATM and Point of Sale machines. The
Bank wishes to urge banks to address this matter expeditiously in order to
avoid loss of confidence by customers in this important payment method
and reversal of gains the country has registered in the payment systems.
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Banks should also ensure that they sensitise their customers on how they
can protect themselves from falling prey to such fraud.

4.5

PARTICIPATION AT THE ZAMBIA AGRICULTURAL AND

COMMERCIAL SHOW
The Bank was gratified with the high level of participation of banks at
the just ended Zambia Agricultural and Commercial Show.
We believe that the public benefitted greatly from the information and
materials shared in during the show. In particular we commend the
initiative by the BAZ on sensitising the public on the issue of the credit
reference services.

4.6

WORKSHOP ON HOW BANKS DETERMINE LENDING RATES

The workshop on How Banks Determine Lending Rates will take place
on August 10, 2010 at the Taj Pamodzi Hotel from 08:30 hours. As
announced in the previous meeting, every bank is required to be
represented at the Chief Executive Officer level and or Chief Finance
Officer level.

4.7

Finscope Zambia 2009

Following the approval of the FinScope 2009 Survey Report by the FSDP
Steering Committee, the results were officially launched to the public in
Lusaka and Copperbelt (Ndola) on 27 July 2010 and 29 July 2010,
respectively.
It is expected that going forward a series of industry-specific
dissemination workshops will be held to highlight potential areas of
intervention. Stakeholder groups amongst you, who may wish to hold
such workshops, should engage the FSDP Secretariat to facilitate.
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In a related development, during the Launch, the Hon Minister of

Finance and National Planning reiterated Governments appeal for the
provision of banking services in rural areas, in particular the provision of
house loans to the civil servants to complement Government
infrastructure development efforts.

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