By Ben Kangwa
Minister of Finance,
Alexander Chikwanda recently launched the Bayport Financial Services’ Deposit
Centre with a call to the organization to extend its deposit taking reach to
other parts of the country so as to assist citizens, especially in the rural
areas, to access finances cheaply. The launch took place on 27th
April, 2016 at the Bayport Head Office in Lusaka.
Minister Chikwanda cutting the
ribbon, looking on is Justin Chola, Bayport CEO
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In his keynote
address, he said Bayport should help provide affordable and accessible
financial services to the Zambian citizens from all walks of life including the
small scale enterprises. The launch of the deposit centre, he said, would
assist increase the savings culture in Zambia.
“I would like to
commend Bayport on this expansionary effort as it will make a significant
contribution towards the national financial sector development plan. The
commencement of the deposit taking will make a positive contribution to the
savings culture in our country,” he said.
The Minister further called on Zambians to
actively develop the economy by participating in the financial sector. He said
Zambians should rise to the challenge to
utilise business opportunities that exist through individual or joint ventures
and help reduce the huge foreign exchange flight through wholly owned foreign
companies.
He, however,
strongly pointed out that foreign banks operating in Zambia have been
externalizing a lot of money out of the country. He said having served as
Chairman of the Audit Committee at a known bank years ago, he had knowledge of
how much money goes out of the country in profits.
For this reason, he encouraged Zambians to set
up businesses either as individuals or in partnerships with others in order to
curb the scourge. “We need Zambians to participate either as individuals or in
joint ventures and increase their stakes as this would significantly help to
reduce the externalization of foreign exchange from Zambia,” he said.
On a slightly different
note, the Minister also took advantage of the occasion to commend Bayport for
providing tuition scholarships to over 50 students at the University of Zambia
(UNZA) out of which 10 students have benefitted full sponsorship.
In 2014, Bayport
Financial Services awarded full scholarships to 10 University of Zambia
students to cover accommodation and monthly allowances. The company also
awarded partial scholarships to 40 students who had been granted government
bursaries but had not been able to meet other outstanding fee payments.
The speech was
punctuated with applauds to Bayport Financial Services for its Corporate Social
Responsibility packages that include donations to the cause of the Girl Child, material
support to sports organizations such as Nkana Football Club.
Over the years, other donations have been
soccer attire to Luanshya’s Roan United Football Club and football kit to
Ndola’s Lime Hotspurs Football Club, cash and gear for the annual Choova
Bicycle Race in Chipata and cash donation in support of the Heroes 7’s Rugby
tournament held in Kabwe.
Added to the
list is also the construction funding for the Zambia National Service hospital,
comprehensive support funding for the Teachers’ Union at both national and
local level and sponsorship of education costs of numerous orphans across
Zambia.
Earlier, in his
welcome remarks, Chief Executive Officer of Bayport Financial Services, Mr. Justin Chola gave an insight background of Bayport
Shareholders. He said these include
·
KINNEVIK of Sweden – A publicly
listed investment fund with investments in over 80 countries and assets worth
more than $10 billion dollars.
·
The PUBLIC INVESTMENT
CORPORATION of South Africa (PIC) – wholly owned by the South African
government whose Minister of Finance is shareholder representative. The PIC is
an investment vehicle with over $150 billion in assets under management.
·
HELIOS INVESTMENT PARTNERS – An
African focussed private equity firm with over $3 billion in capital
commitments.
He stated that
Bayport was formed in 2002 and that the above mentioned and other entities are
shareholders in Bayport Financial Services via their ownership stake in Bayport
Management Limited (BML), the international majority shareholder in Bayport
Financial Services Limited.
Mr. Chola noted
that from its roots in Zambia, Bayport Management Limited has grown to become
an international organization with operations in 8 countries in Africa as well
as in Latin America while its administrative office is in London.
He told his
audience that Bayport employs over 340 Zambians, serves over 95,000 customers
and has over 100,000 active loans and the net loan and advances as of March 16
stood at K1.5 billion, which constitutes a natural progress to offer
deposit-taking products.
The Bayport
Chief Executive Officer also appealed to the government and private
organizations to put in place measures that would close the gap between deposit
rates and lending rates which was quite significant. He explained that Zambia
had gained a reputation where the gap between deposit rates and lending rates
is wide such that the common man on the street was not reaping any benefits
from financial institutions.
“We view this as
an opportunity to close the gap and provide higher returns to ordinary Zambian
citizens to whom we are committed,” he added.
He said in order
to improve efficiency in the institution’s lending systems, Bayport had
acquired state- of- the- art equipment. “We have invested heavily to build a
completely customized solution from scratch in this new business.
On his part, Mr.
Visscher Bbuku, Director-Non Bank Financial Institutions Supervision Department
at the Bank of Zambia, in his remarks commended Bayport for the investment it
has made to enhance financial outreach.
Bbuku said the transformation into a
deposit-taking microfinance institution will enable Bayport offer savings
products to its clients in addition to the loan products, as well as enlarge
its resource base due to the build-up of deposits base. “This will undoubtedly
position the institution towards becoming a major player in the financial
sector in the years ahead,” he added.
He observed that
there was a large un-banked population in Zambia, with a growing demand for
banking and financial services currently at 59% from 37% in 2009. He noted that
Bayport Financial Services Limited had contributed to the increase in financial
inclusion by expanding access to finance by the middle income population,
particularly the formal sector employees, who he said in the past “were not
able to benefit from financial products.”
That said, it
was time for the Bayport CEO to lead the Minister to the cutting of the ribbon
right in front of the Deposit Centre entrance and the unveiling of the plaque on
the side wall next to the entrance, marking a new chapter and a steady step
towards a brighter future.
Traditional
music and dance had been provided by ‘Nomakanjani’ Dance Troupe throughout the
function and had interspaced all the three speeches that were delivered by the
speakers.
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Ben Kangwa is a
Media Consultant based in Lusaka
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The difference is that we combine the roles of the three bodies into one organisation. natwest online banking
ReplyDeleteWe will see the difference with these financial services in the future but it seems is gonna be good for both parts
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