REPUBLIC OF ZAMBIA

SPEECH BY

HIS EXCELLENCY DR EDGAR CHAGWA LUNGU PRESIDENT OF THE REPUBLIC OF ZAMBIA

ON THE OCCASION MARKING THE OPENING OF THE ABSA BANK PETAUKE BRANCH IN EASTERN PROVINCE

THURSDAY, 19TH NOVEMBER, 2020

STATE HOUSE LUSAKA

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 MINISTER OF INFORMATION AND BROADCASTING SERVICES, AND MEMBER OF PARLIAMENT FOR PETAUKE, HON. DORA SILIYA;  THE PROVINCIAL MINISTER, HON. MAKEBI ZULU;  OTHER CABINET MINISTERS;  SENIOR GOVERNMENT LEADERS;  PATRIOTIC FRONT PROVINCIAL LEADERSHIP;  DISTRICT AND CIVIC LEADERS;  THE MANAGING DIRECTOR OF ABSA BANK ZAMBIA PLC, MRS. MIZINGA MELU AND ABSA BANK MEMBERS OF STAFF;  MEMBERS OF THE PRESS;  DISTINGUISHED LADIES AND GENTLEMEN;

ON THE OCCASION OF THE LAUNCH OF THE ABSA BANK ZAMBIA PLC BRANCH IN PETAUKE, I WISH TO EXPRESS MY DELIGHT THAT THE BANK HAS CONSIDERED OPENING A BRANCH IN THIS RURAL PART OF OUR COUNTRY. MY GOVERNMENT WILL SUPPORT SUCH INITIATIVES AIMED AT CONTRIBUTING TO DEVELOPING RURAL ZAMBIA. THIS DEVELOPMENT IS A DEMONSTRATION OF WHAT MY GOVERNMENT STANDS FOR - NOT LEAVING ANYONE BEHIND. THERE IS, THEREFORE, URGENT NEED FOR US TO ENSURE THAT OUR MOTTO - NOT LEAVING ANYONE BEHIND - IS ACTUALISED. DEVELOPMENT NEEDS TO BE EQUALLY SPREAD THROUGHOUT THE COUNTRY.

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LADIES AND GENTLEMEN, I AM IMPRESSED WITH ABSA THAT SINCE THE BANK REBRANDED FROM BARCLAYS IN FEBRUARY THIS YEAR, WE HAVE SEEN A NUMBER OF ACTIVITIES THAT CONFIRM THE MESSAGE OF ASSURANCE THAT THE BANK REMAINS FULLY COMMITTED TO ZAMBIA, IN PARTICULAR, AND AFRICA IN GENERAL. LAUNCHING A ‘NEW BRICK AND MORTAR’ BRANCH IN PETAUKE IS INDEED AN AFFIRMATION THAT THE BANK IS HERE TO STAY. I UNDERSTAND THAT SOMETIME NEXT YEAR ABSA WILL ALSO BE UNVEILING THEIR NEW HEADQUARTERS IN LUSAKA AS FURTHER PROOF OF THE BANK’S COMMITMENT TO ITS CONTINUED OPERATIONS IN ZAMBIA. LET ME TAKE THIS MOMENT TO COMMEND THE BANK FOR BEING A MODEL INVESTOR IN ZAMBIA, ITS PRECURSOR HAVING OPERATED IN ZAMBIA SINCE JUNE 1918 WHEN THE FIRST BRANCH OPENED HERE IN CHIPATA, EASTERN PROVINCE. THIS IS AS IT SHOULD BE, RATHER THAN AN INVESTOR WHO COMES ONLY FOR A FEW YEARS AND DISAPPEARS AT THE FIRST SIGN OF ECONOMIC CHALLENGES. ABSA ZAMBIA PLC, PREVIOUSLY KNOWN AS BARCLAYS BANK HAS STAYED THE COURSE IN ZAMBIA FOR OVER 102 YEARS THROUGH GOOD TIMES AND CHALLENGING TIMES. THIS IS THE INVESTMENT THAT NEEDS TO BE EMULATED.

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THE BANK HAS MADE GREAT STRIDES IN LIVING UP TO BEING A WORTHY AND RELIABLE PARTNER IN OUR COUNTRY’S DEVELOPMENT AGENDA THROUGH PROVISION OF FINANCIAL SUPPORT IN KEY SECTORS OF THE ECONOMY SUCH AS MINING, ENERGY, AGRICULTURE AND THE PUBLIC SECTOR. I AM INFORMED THAT THE BANK HAS ARRANGED FINANCING IN THE COUNTRY OF OVER $7 BILLION IN THE LAST 10 YEARS AND THIS HAS FACILITATED EXPANSION OF OPERATIONS LEADING TO AMONG OTHER THINGS, INCREASED EXPORT EARNINGS AND EMPLOYMENT FOR OUR PEOPLE. I AM ALSO INFORMED THAT IN THE ENERGY SECTOR, THE BANK HAS FACILITATED INVESTMENT TO INCREASE POWER SUPPLY TO REDUCE THE POWER DEFICIT. I AM ALSO AWARE THAT IN THE AGRICULTURE SECTOR, IN THE LAST 3 YEARS ALONE, ABSA PLC HAS BEEN A REGULAR PARTNER IN THE FARMER INPUT SUPPORT PROGRAMME (FISP) IMPACTING OVER 200,000 SMALL HOLDER FARMERS AND 50 AGRO DEALERS WITH TOTAL TRANSACTIONS CHANNELED THROUGH THE BANK OF K130 MILLION. MY GOVERNMENT HAS CONSISTENTLY PROMOTED THE NEED FOR FINANCIAL INCLUSION AND IN A COUNTRY WHERE ONLY ABOUT 60 PERCENT OF THE POPULATION IS BANKED, A VACUUM EXISTS WHERE MILLIONS OF THE ZAMBIAN POPULATION ARE UNBANKED AND OUTSIDE THE FORMAL BANKING SECTOR.

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THE VISION FOR FINANCIAL INCLUSION IN ZAMBIA IS TO HAVE UNIVERSAL ACCESS TO AND USAGE OF A BROAD RANGE OF QUALITY AND AFFORDABLE FINANCIAL PRODUCTS AND SERVICES. IN ACHIEVING THIS VISION, IT IS EXPECTED THAT ALL ZAMBIANS WILL REAP THE FULL BENEFITS OF FINANCIAL INCLUSION: THAT IS, INDIVIDUALS WILL BE ABLE TO USE APPROPRIATE SAVINGS, CREDIT, PAYMENT, INSURANCE, AND INVESTMENT SERVICES TO MANAGE RISKS, PLAN FOR THE FUTURE, AND ACHIEVE THEIR GOALS. FIRMS WILL BE ABLE TO ACCESS AFFORDABLE FINANCING TO FACILITATE INNOVATION AND GROWTH TO CREATE EMPLOYMENT. LADIES AND GENTLEMEN, SIGNIFICANT DISPARITIES IN FINANCIAL INCLUSION REMAIN BETWEEN RURAL AND URBAN AREAS, MEN AND WOMEN, YOUTH AND ADULTS, AND SMALL AND MEDIUM ENTERPRISES (SMES) AND LARGE FIRMS. THE POTENTIAL TO LEVERAGE DIGITAL TECHNOLOGIES TO REDUCE COSTS AND EXPAND THE REACH OF THE FORMAL FINANCIAL SECTOR HAS NOT YET BEEN FULLY EXPLOITED. IT IS, THEREFORE, ENCOURAGING TO NOTE ABSA’S EFFORTS TOWARD MAKING FINANCIAL SERVICES AVAILABLE TO THE MASSES THROUGH INNOVATIVE PRODUCTS MOST NOTABLY THROUGH THE KONGOLA AND KASAKA PRODUCTS.

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I HAVE BEEN INFORMED THAT THROUGH THESE PRODUCTS, ABSA HAS BEEN ABLE TO EXTEND MORE THAN 3 MILLION LOANS WITH A CUMULATIVE VALUE IN EXCESS OF ZMW1.2 BILLION TO CLIENTS WHO WOULD USUALLY HAVE NOT QUALIFIED UNDER THE CONVENTIONAL BANKING CRITERIA. ZAMBIA HAS FACED SERIOUS ECONOMIC HEADWINDS IN RECENT TIMES EXACERBATED BY THE CORONAVIRUS PANDEMIC AND CLIMATE CHANGE. THIS HAS CAUSED SERIOUS FINANCIAL CHALLENGES ON THE MAJORITY OF THE POPULATION. HOWEVER, ZAMBIANS SHOULD DRAW INSPIRATION FROM ABSA’S NEWLY COINED PHRASE OF ‘AFRICANACITY.’ ‘AFRICANACITY’, FROM WHAT WE UNDERSTAND IS THE DISTINCT AFRICAN WAY TO ALWAYS FIND A WAY TO GET THINGS DONE DESPITE ALL ODDS.

LADIES AND GENTLEMEN, WE HAVE FACED TOUGH TIMES BEFORE AS A COUNTRY BUT WE HAVE ALWAYS PREVAILED BECAUSE OF OUR DETERMINATION AND TENACITY. WE NEVER GIVE UP AS ZAMBIANS AND THAT IS WHY ‘AFRICANACITY’ RESONATES WITH SO MANY ZAMBIANS. IN THIS REGARD, I URGE ABSA TO TRANSLATE THIS PHRASE AND THE BUSINESS PURPOSE OF ‘BRINGING POSSIBILITIES TO LIFE’ INTO PRACTICAL BANKING SOLUTIONS BY HELPING ORDINARY ZAMBIANS FIND A WAY TO GET THINGS DONE.

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VILLAGE BANKING, AS AN EXAMPLE IS GROWING RAPIDLY IN ZAMBIA, PARTICULARLY, AMONG WOMEN AND ONE HOPES THAT BANKS CAN TAILOR THEIR PRODUCTS AND SERVICES TO MEET THE NEEDS OF THIS UNIQUE CLIENTELE. I AM IMPRESSED THAT ABSA HAS COMPLEMENTED MY GOVERNMENT IN FIGHTING THE CORONAVIRUS, SUPPORTING HOSPITALS, CLINICS AND SCHOOLS WITH VITAL EQUIPMENT AND INFRASTRUCTURE DEVELOPMENT. IN ADDITION, THE BANK HAS BEEN SUPPORTING OVER 50 VULNERABLE STUDENTS WITH SCHOLARSHIPS AT VARIOUS TERTIARY INSTITUTIONS. IT IS ALSO GRATIFYING TO NOTE THAT THE BANK HAS IMPARTED ENTREPRENEURSHIP AND WORK SKILLS TO OVER 20,000 YOUTHS IN THE LAST THREE YEARS. SPORTS SPONSORSHIP IS ANOTHER AREA THAT HAS BECOME SYNONYMOUS WITH THE BANK. THE ABSA FOOTBALL CUP AND THE ABSA MARATHON HAVE BECOME KEY ACTIVITIES ON THE ZAMBIAN SPORTS CALENDAR. TO YOU, THE RESIDENTS OF PETAUKE, THE OPENING OF AN ULTRA-MODERN BRANCH IN THE DISTRICT SHOULD SERVE AS A VOTE OF CONFIDENCE IN THE FINANCIAL VIABILITY OF THE DISTRICT.

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AT A TIME THAT SOME FINANCIAL INSTITUTIONS ARE CLOSING OUTLETS PARTICULARLY IN RURAL AREAS, ABSA HAS OPENED THIS BRANCH DESPITE ECONOMIC CHALLENGES, AN INDICATION THAT THE BANK HAS CARRIED OUT A FEASIBILITY STUDY, AND CONCLUDED THAT THERE IS SUFFICIENT ECONOMIC ACTIVITY IN THE AREA TO JUSTIFY THIS INVESTMENT. I AM, THEREFORE, CONFIDENT THAT THE BANK WILL WORK CLOSELY WITH THE RESIDENTS OF PETAUKE TO MAXIMISE THAT BUSINESS POTENTIAL TO ITS FULLEST. IT IS NOW MY DISTINCT HONOUR AND PRIVILEGE TO OFFICIALLY DECLARE THE NEW ABSA BANK PETAUKE BRANCH OFFICIALLY OPENED. MAY GOD CONTINUE TO BLESS THE REPUBLIC OF ZAMBIA. I THANK YOU.

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