By BUUMBA CHIMBULU
THE Zambia National Building Society (ZNBS) has projected the growth of its asset base in 2017 to about K1.1 billion from the current K690 million recorded as at November 2016.
And the society has also recorded significant growth in profitability to K20.6 million as at November 2016 from K3.9 million in 2015.
ZNBS managing director Joseph Chikolwa has attributed the growth to the increase in loans and advances by 27 per cent from K367 million to K468 million.
He was speaking during the official signing ceremony of the Memorandum of Understanding (MoU) between ZNBS and Public Service Management Division (PSMD) for the loan refinancing scheme for public service employees worth K40 million Lusaka yesterday.
“Over the last two years, the society has registered steady growth and by the end of 2017/2018 financial year, we anticipate to grow the asset base to about K1.1 billion from the current K690 million,” he said.
Mr Chikolwa said the customer deposit rose by 11.8 per cent to K253 million from K227 million and interest income grew by 40 per cent from K53 million to K74 million in 2016.
He also said the MoU would lower the cost of interest rates for public service employees that have borrowed at high interest rates and result in a higher take home pay.
“We are aware of the challenges faced by public service employees and general public related to the cost of borrowing,
“The customers will obtain loans in form of refinancing at very competitive interest rates of 33 per cent for the tenure of 60 months,” he said.
And Zambia Congress for Trade Unions (ZCTU) secretary general Cosmas Mukuka said a motivated workforce with securities such as access to loans and decent conditions was needed in Zambia.
Mr Mukuka said the MoU would therefore motivate the public service workforce which for a long time had been perceived as not contributing to development.
“This agreement has incentives which will promote the public workforce. It has incentives such as offering promotional loans to Civil servants for the first three months,” he said.