TRANSFORMING INDUSTRY, DEVELOPING ZAMBIA
plays an integral role in the de- velopment of commerce and industry in any economic dispensation. In this regard, banks play an important role in the creation of new capital (or capital formation) in a country and thus help THIS the economic year marks growth process. 96 years The banking since sys- tem facilitates the intermediation of internal and
the World Savings Day was first
international trade.
established in 1924.
The history of the banking sector in Zambia dates In as delivering far back as 1906, her when speech the first as commercial Guest
bank-Standard Chartered Bank was established, with
of Honour during the commemo
it first branch opened in Kalomo District of Southern
ration of the 2020 Word Savings
Province. In the last 114 years of the existence and oper- ation Day of the event, commercial the banking Bank sector of in Zambia Zambia, the country currently has 18 registered commercial banks.
Deputy Governor-Administration
Taking into account the critical role played by the
Rekha Mhango stated that as the
sector in the provision of banking services to all sec- tors world of the economy grapples the existing with banks the in adverse the country realised the importance of establishing an umbrella
effects of the COVID-19 pandemic,
body that would effectively represent the interests of
savings have proved to be amongst
the sector.
one It was of against the most this background important that in finan2008, the Bankers Association of Zambia (BAZ) was formal-
cial saftey netys to help people
ly registered. Prior to the establishment of BAZ, the
cope with the pandemic.
Association operated informally with the chairing bank “Both in a particular Regular year, offering savings all related and secre- tarial services, as well as coordinating all activities of
emergency savings have helped
the membership. The Association’s role has overtime evolved people to include to the pay promotion for unexpected of efficiencies, in-
medical expenses, as well as cover
novations and industry growth and positioning mem- ber-banks to continue supporting both private sector
un-anticipated funeral expenses.
and Government economic agendas enshrined in the country’s Savings National have Development also one Policies. a long way
BAZ aims at participating at the highest level of
in suataining families and living
decision making in the country through the contin-
expenses through period of down
ued engagement with the three primary regulators of the turns financial in services economic sector-the and Bank of business Zambia, the Pensions and Insurance Authority and the Securities
activity, including a reduction in income”, she stated.
This underscores the need to promote savings. The Deputy Governor further explained that the 2020 World Savings Day theme which is dubbed “When You Save a Bit, Big Things Happen”is therefore an optimistic expresssion of what people can achieve with current and future savings. “It is this message of optimism and hope that we should convey to uplift people who have been adversely affected during this time. Financial security propvided by savings can enable us to cope with unexpected and prolonged uncertainties whilst enabling us to avoid distribution to our planned goals;” she said. and Exchange Commission.
BAZ is a mouthpiece of the banking sector and is mandated to address various matters of common in- dustry interest through lobbying, advocacy and poli- cy influence. The Association aims at facilitating the industrial The and innovation importance growth of the of sector, savings as well as building and sustaining good-will and public con-
during times of economic reces
fidence in the commercial banking sector. One of the
sions and the COVID-19 global
ways this mandate is realised is through engagement with pandemic critical Government such as agencies now, and cannot ministries be as well as other critical stakeholders in Zambian econ-
over-emphasised, as the adverse
omy.
effects of both have affected indiHOW viduals, WE WORK communities, businesses, The Bankers Association of Zambia works with its
and nations alike.
members to provide analysis, advice and advocacy and
The provision of banking, as we
contributes to the development of public policy on banking knew and it other then, financial has services. rapidly trans
The Bankers Association of Zambia works to ensure
formed and is following the chang
that the banking system can continue to deliver the
ing needs and expectations of the
benefits of competition to Zambian banking custom- ers. present and future generations. The market now offers basic savings products that attract minimal and no-charges and this is helping to scale-up financial inclusion levels for the under-served and un- served populations.
The rise and sophistication of online and digital banking has greatly helped clients transact virtually on secure banking platforms, and better cope with
The Association also works to ensure that the bank- ing industry views are put forward when government determines policy or legislation. Many areas of law and including international law impact upon the interests of commercial banks in Zambia.
minimal For example, to issues no of disruption micro and fiscal in policies their and financial sector reform affect the trading environment
financial transactions during this
for banks in Zambia and the Association consults its
COVID-19 global pandemic era.
members to form industry position on many such is- sues. The With the Bankers active participation Association of the member of
banks, the Bankers Association of Zambia works to fos-
Zambia Chairperson Mr. Herman
ter an environment in which financial services are val-
Kasekende advsied members of
ued and can prosper. In communicating the industry’s views, the the public Association to adopt works with what Government, he called the regulators, other industry associations, the community,
the 50-30-20 Golden Rule of man
community groups and the media.
aging finances.
Some of the initiatives that the Bankers Association of Zambia In is explianing working on in collaboration this phenomewith the Bank of Zambia and other key stakeholders include the fol-
non, Mr. Kasekende noted that at
lowing: -
least 50 percent of an individual’s -Promoting earned shared income digital after payments tax channels should through be spent on living expenses and essentials, 30 percent should be put aside for flexible spending and the rest representing 20 percent put aside in form of savings, investments or emergencies.
“Sadly, the reality is that most Zambians have difficulties and challenges in saving. The usual excuse is that they have nothing left over after meeting their needs to save. The behaviour is self-entrapment and makes a lot of people to live on hand-to-mouth or pay cheque to pay cheque. This is the more reason that most bank account holders wipe out their earnings within a few days after pay day, and find themselves in a situation of perpetual indebtedness, adding to the idiom of the working poor”, he said.
“It is a well known fact that those who saved a little were more resilient in enduring the economic hardships induced by the COVID-19 global pandemic, than those who did not have any savings to fall back on” Mr. Kasekende added.
His sentiments were not so
Bankers Association of Zambia is governed through a committee of Chief Executive Officers of commercial banks which meets monthly to discuss matters affecting the banking sector. The affairs of the Association are coordinated through the Secretariat
different from the Securities and
who report to the Executive committee. The Executive Committee Exchnage is elected Commission every year at the Annual (SEC) General Meeting and is made up of:
Chief Executive Officer Mr. Philip
The Chairperson, Deputy Chairperson, Treasurer,
Chitalu, who described that
Executive member and the BAZ CEO who is ex-officio.
COVID-19 The Bankers Association global of pandemic Zambia Secretariat as an is currently led by Chief Executive Officer who is support-
example of an unforseen key-life
ed by the Public Relations & Administrative Officer
change.
and a Research and Communications Officer.
The This Chief Executive is Officer largely with support because from this management team, play crucial role in fulfilling the
COVID-19 is a clear example of
BAZ’s responsibility to improve public awareness and
an emergency that may arise at
understanding of the industry’s contribution to the
any given moment in one’s life. He
country’s economy and communities, with a strong emphasis on consultation with stakeholders.
effects of the downturn in global
Having discussed in brief the background of BAZ, please economic look out for activity a two series include column on matters loss of re-
employment, closure of business
lating to individual financial awareness as the country joins the rest of the world in commemorating the 2020
es, and disruption in the provision
Financial Literacy Week. of some Contact essential address services.
Bankers Association of Zambia
“The sad truth is that not each
3rd Floor, Citibank House
one is immune. Given this scenar
Stand 4646, Elunda 3 io, it Addis leads Ababa me Roundabout to ask daunting but
P.O. Box 34180
honest questions. Assuming you
Lusaka, Zambia
lost your job today or had a disrup
Tel: +260 211 234208/55 tion Fax: in +206 211 your regular 233046 income flows,
E-mail: bazsecretariat@baz.co.zm
how ready are you as an individual to wither the storm? Would you have enough savings to meet your day to day expenses for a reasonable period of say six months? Would you be able to pay for your children’s education or meet your medical expenses?”, Mr. Chitalu asked.
“If your answer is NO, then it is time to self-introspect and devise ways to betetr manage your financial resources in order to mitigate unforseen risks. Fortunately, savings is one way of doing so, and this means is available to each one of us”.
Remember that no amount of money is too small to save as the benefits of having large accumulated savings empowers us to accomplish big things including fianncial security, resilience and peace of mind during uncertainties such as now.
When You Save a Bit, Big Things Happen
FRAUD PREVENTION BUSINESS EMAIL COMPROMISE
Cybercrime includes Business Email Compromise (BEC) which can be defined as “a criminal act where criminals illegally access an email account and communicate as if they are the user”. They do this by stealing account holders’ usernames and passwords through phishing or other means, to trick users into disclosing their details. They then utilise the compromised information to access and use the user’s email account.
Signs of a Possible Compromised Email Address:
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TIPS ON WHAT STEPS TO TAKE
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Complaints about spam being sent from your email address.
Emails are not being received Missing emails.
Receiving large numbers of undeliverable or bounce messages for emails you did not send.
Not being able to log into your email account.
Seeing unknown emails in your Sent Items folder. or
Make sure your PC has the most up-to-date OS updates and antivirus/
malware software.
Depending on the extent to which your account was abused, you may have to contact all email recipients who were spammed by your hacked mailbox to advise them that these communications were not legitimate. Set up several email addresses. Use your original email address for personal or business communication as you would normally do and use an alternative email address to communicate with your service provider, since many now ask for a different address for added protection. Then, use yet another email address for registering for websites, newsletters, online shopping, and other services. In this way, the risk of a possible compromise is spread.
Use different and strong passwords for each account - one that is at least six characters long, and is a combination of letters, numbers, and capitals/lowercase.
On a secure PC, log into your email and then check if any of the settings have been changed. This could indicate that your email account has been hacked, so ensure that if any of the settings have been altered, that you delete these immediately.
Once you have changed the settings, create a new password, and add your secondary email account as your alternative address.
Never list your main email address publicly anywhere online - in forums, in online advertisements, on blogs, social media or any place where it can be harvested by spammers. Use a separate email address for the internet which is not linked to your personal or business email account. Do not use public computers to check email; there is virtually no way to know if they have been accidentally infected with malware or have had keylogging spyware installed intentionally.
At least 50 percent of an individual’s earned income after tax should be spent on living expenses and essentials, 30 percent should be put aside for flexible spending and the rest representing 20 percent put aside in form of savings, investments or emergencies”
— Mr Kasekende.
As always, be sure to join us next week as we bring to you another exciting topic. Please share your comments and thoughts with us via Email: Mirriam.Zimba@baz. co.zm