BONDS, TREASURY BILLS TO GO ELECTRONIC
…State says move to promote citizen participation
By BUUMBA CHIMBULU GOVERNMENT will soon roll out a new innovation meant to promote citizen participation in government securities such as bonds and treasury bills using mobile services.
Government securities are debt instruments issued by a national government as a means of borrowing money.
Ministry of Finance permanent secretary, Mukuli Chikuba, said the new innovation would boost local participation in Government securities which was low.
Mr. Chikuba, who is acting Secretary to the Treasury said Government had observed that citizen participation in its securities had been limited, hence the introduction of a new strategy.
“The participation by citizens in buying of Government bonds and securities has been very limited because the only channel which is being used now is the banking sector,
“So for those who are out in the streets, to go to the banks to buy these bonds is quite difficult. The level of savings of course amongst our people are low and some feel banks are not meant for them,” he said.
Mr. Chikuba said in an interview that there were some companies which had shown interest to embark on the innovation as soon as possible.
“Government is coming up with a deliberate stance where we are promoting the use of mobile services in buying of securities from the banking sector and very soon we will be going on a road show to sensitise people,
“There are a few companies that have indicated they want to start within Zambia to offer that platform so we will be seeing within this quarter a roll out of those services and then people will be better to participate,” Mr. Chikuba said.
Mr. Chikuba also said “beyond the mobile services, we need connectivity in areas such as networks of post offices where in real time, we can have connectivity with the Bank of Zambia and people could walk into there and buy securities.”