The Association of Micro-finance Institution of Zambia (AMIZ) has advised the Bank of Zambia (BOZ) to continue with the K10 billion stimulus package post Covid-19 and in future.
Speaking in an interview with Money FM News, Association Executive Director Webby Mate explained that Bank of Zambia can use various instruments to support economic activities in particular sectors of the economy.
“The Facility is good; we wish all along this had been there, our prayer is that this should not end with Covid-19, but should remain a policy instrument that the central bank can keep using even in the future, ” Mr Mate said.
“For example Livingstone as a tourist capital can be identified and come up with a policy that will focus on all investors in the town to accesses finances at a particular rate”.
Mr Mate added that non-banking financial institutions in the country are only allowed to access funds under the facility if they have a list of Small and Medium Scale Entrepreneurs (SME’s) that have made it possible for the institution to apply for funds.
He said before accessing funds from the facility, the Central Bank is insisting the need for financial institutions and non-bank financial institutions to provide a list of the receipts of the funds.
Mr Mate noted that this is to avoid beneficiaries from investing the money in other sectors apart front the one stipulated in the 7th National Development Plan.
Recently the Bank of Zambia announced that it has disbursed funds to 4 non-bank financial institutions indicating a disbursed percentage of 15 % out of the 133.76 value.