ZNBS asset base grows to K1.4 billion

BUUMBA CHIMBULU writes @SunZambian THE Zambia National Building Society (ZNBS) total asset base currently stands at K1.4 billion as it continues to provide housing mortgage to its customers in a quest to assist in reducing the housing deficit in the country. ZNBS however needs to increase its presence on the market despite improved asset portfolio, Finance Minister, Bwalya Ng’andu said during the Golden Jubilee Celebration. Dr Ng’andu said ZNBS would need to focus on fostering relationships with key players such as pension funds insurance companies and various multilateral lending institutions which would enable the Society lend mortgage at affordable rates. This, he said, would place the building society in a loft position to access the resources that it required to build a premier real estate platform to take Zambia towards a middle income country. “I am confident that the Society is on the right path to deliver on its core mandate. The society published a profit for the year ended 31st March 2020 of K27 million. “In addition, the Society has declared and paid a dividend of K5.2 million over the period 2016-2019,” Dr Ng’andu said. ZNBS, he said, could enhance its outreach by providing cost effective and affordable financing to its customers. Dr Ng’andu however acknowledged that this was only possible if ZNBS was able to access affordable wholesale funds that it could on-hand on equally competitive terms. Bank of Zambia Governor, Christopher Mvunga, said the ever changing market landscape, and called for ZNBS to adapt to the prevailing business environment for it to remain a stable financial institution. Mr Mvunga said doing so would help thousands of Zambians achieve their dream of owning a house. He said investment in service delivery channels and robust information systems was the way to go to remain competitive as well as to meet the ever changing customer needs. “Technology is the core strength of every institution to efficiently carry out or execute its mandate, thus it is paramount that we all embrace technology. “We therefore welcome ZNBS’ migration from the ZNBS information management system to the new core banking system,” he said. ZNBS Managing Director, Mildred Mutesa, said provision of an affordable mortgage remained a challenge at the current cost of wholesale funds which are largely referenced to Treasury bill rates. This, Ms Mutesa said, needed specific policy initiatives to be undertaken to address the issue of affordability. She said the cost of bulk services however remained an inhibiting factor to the provision of affordable houses. “We will therefore be calling on your office, Honorable Minister of Finance to support various initiatives aimed at instituting the provision of sustainable long term funds for the delivery of an affordable mortgage,” she said.