Movable property registry nets 12,000 transactions
By BUUMBA CHIMBULU OVER 12, 000 transactions have been registered for the movable property registry system at the Patents and Companies Registration Agency (PACRA) which allows borrowers use property such as livestock and vehicles as collateral to access credit from financial service providers.
According to PACRA chief executive officer and registrar, Anthony Bwembya, the agency as of Wednesday this week had registered 12,792 and that a majority of them were Small and Medium Enterprises (SMEs).
"There has been steady growth in the numbers of people registering for collateral. This law will allow financial service providers to expand their businesses by extending loans to other sectors, particularly the SMEs," Mr Bwembya said.
Mr. Bwembya explained that the Act would enable SMEs access credit as financial service providers would have confidence in the collateral used.
"The collateral registry was welcomed by the financial service providers. This innovation is intended to assist SMEs easily access credit," he said.
He was speaking yesterday at the Master Class for business reporters in Lusaka oranised by Financial Sector Deepening Zambia (FSDZ) and the Zambia Institute for Policy Analysis and Research (ZIPAR).
And PACRA assistant register, Christopher Mapani, explained that the majority of registrations were SMEs.
Mr. Mopani also urged all businesses, particularly the SMEs to take advantage of the system and access credit.