Covid-19 will assist in financial positioningMFEZ industrial yards on course

financial service providers with major operational strategic

THE Covid-19 should be relied on challenges

By BUUMBA CHIMBULU yards in the LS- for current and future positioning “Significant challenges Works in the are going

of the financial industry in the

CONSTRUCTION digital financial ecosystem of and must the be contractor ecosystem which will attract industrial taken into yards account. in the Such on challenges site. savings and investments, as Lusaka include South data security Multi- concerns, “Once that well as revenue generation for Facility informality Economic of traders, high done, collateral we will development. Zone requirements, (LS-MFEZ) difficulties to in making see SMEs

which will boost local the zone and

A well developed and functioning and receiving payments within the

participation in the from there,” Mr

financial sector will support and COMESA region,” he said.

area is expected to said. contribute to mobilising savings and be completed CBC Chief in Executive the Officer, He also observed investments, allocate resources next Sandra 12 months. Uwera, said Covid-19 the need had to increase for development, build trust and Participation revealed the importance incentives of the to confidence. of local SMEs investors market segment as willing they to invest

This is according to the Bank of in the formed economic part of the value chains the zone. and Mr

Zambia (BoZ) Director of Banking, zone were is currently key part in driving efficient expressed concern

low due to, among that Zambia had

Currency and Payment Systems, supply chain across markets. Ms

other reasons, the competition from

Lazarous Kamanga. Uwera said SMEs made up 80

minimum investment countries such

Mr Kamanga said the ecosystem percent of economies in Africa and

of US$500,000 which Rwanda, Kenya, in the financial system services some were locals also the say largest is employers. Egypt, South were dynamically evolving, thereby prohibitive. “The discussions we are Mozambique adding value in the business LS-MFEZ having this Business morning are timely Zimbabwe as that models and development. Development a collaborative efforts between better incentives.

He was speaking yesterday Manager, financial Francis regulators and players Mr Kunda said during a virtual stakeholders Kunda, within said the digital financial minimum services US$

construction works of 000 investment

meeting for Financial Services industry as well as manufactures

the industrial yards investors to qualify

Regulators Sub-Regional and SMEs themselves.

were currently on available incentives organsied by the Common Market course. “We are looking to develop was a limiting for Southern and Eastern Africa Mr the Kunda right tool that will be uplift local this businesses. (COMESA) Business Council explained market segment that the and create however more said

(CBC). industrial profitable yards, SMEs in Africa. had CBC been is lobbying

“It can therefore be proved once implementing completed, this digital its financial parent Ministry beyond reasonable doubt that would inclusion boost project local with this Commerce in mind,” Trade

participation in the Industry which

participation in the digital financial Ms Uwera said.

economic zones. talking to Ministry

ecosystem offers financial service COMESA Assistant Secretary

He explained in Finance to improve providers considerable benefits and an interview General - Programmes, that Kipyego incentives. focus new revenue generation from the Cheluget, industrial said yards mobile payments “For investors informal traders,” Mr Kamanga said. would and enable solutions small were the future qualify, one has

He observed that the absence and as medium they were sized inclusive and invest minimum of a comprehensive national policy entrepreneurs accommodative to set of any business. US$500,000 usually resulted in shallow financial up businesses “It is important in the to note some that the of the local market, relatively low financial zone. proposed digital common investors payments that

“That one is on the limiting factor.

literacy and limited financial policy deliberate son the existing

table and we have you invest less

inclusiveness. financial rules. Our goal is to

Citizen Economic S$500, 000 you

Mr Kamanga however observed and harmonise Empowerment the existing strong not be policy entitled that the rapid development of digital Commission platform at who a regional are level,” incentives,” Dr Mr financial ecosystem was presenting constructing Cheluget said. industrial said.