• There is need for teachers to take advantage of their big number to quickly and collectively establish a bank.
• This bank can offer them loans at 5% interest rate or less.
• Loan recoveries will be done through Government payroll.

National Action for Quality Education in Zambia (NAQEZ) has proposed the establishment of a bank for teachers by teachers themselves to avoid the current high bank interest rates on loans.
NAQEZ Executive Director Aaron Chansa told Money FM News that majority of teachers in the country are highly indebted mainly because of contracting very expensive loans meant for furthering their qualifications.
Mr. Chansa said there is need for teachers to take advantage of their big number to quickly and collectively establish a bank that would offer them loans at 5% interest rate or less, whose recoveries will be done through Government payroll.
“If Government allows this formation and each of the 135,000 public service teachers just contributes a K450 through the payroll, more than K60 million will be raised and Zambia will be the second country in Africa to set up a financial institution for cheaper loans for teachers. Because loan recoveries will be done through the Government payroll and that professionals will be employed to run the bank, success and sustainability are guaranteed.”
“In Kenya, the Mwalimu National Sacco has powerfully helped thousands of teachers to avoid expensive borrowing. In Australia, the Teachers Mutual Bank is a major economic tool teachers have been using for personal prosperity,” Mr. Chansa noted.
He added that it is the organization’s hope that Government, all teachers and other stakeholders will embrace this proposal because once put in place, the bank will empower and motivate teachers for improved quality of education in the country.
“Once formed in Zambia, the teachers’ bank will be owned by teachers themselves. It will be governed and overseen by their own board. The teachers in respective provinces will elect one from among themselves to sit on the board. These board members will hire a competent management team to ethically and credibly run the bank. Profits made by this bank will be reinvested into the business for an increased number of cheaper loans for teachers,” he added.