In addition, the Bank of Zambia has incorporated financial inclusion as part of its current strategic plan in which it has undertaken to achieve financial inclusion to 50% of the population of the land by 2015 from the current level of 37.3%. The rationale for this objective is that it responds to the need to bring the poor into the financial system and thereby avail them of the opportunities for financial access and growth. It is expected therefore that this branch we are opening today will play its part in enhancing savings mobilization and effectively channeling the savings to support financing of economic activities. Honourable Ministers, Distinguished Ladies and Gentlemen, the Bank of Zambia has for sometime now, been discussing with commercial banks and financial institutions such as NATSAVE on the need to seek ways and means of introducing branches and agencies in districts which do not have any bank branches or agencies such as Mpongwe, Masaiti, Lufwanyama to name but a few. I am pleased to inform you that, in November 2012, the Bank of Zambia sent a mission to Mpongwe and Masaiti to gather information which could assist in developing a business case for financial institutions to establish branches and support economic activities in these two districts. The report we obtained from the mission provided overwhelming evidence of a viable business case for not only one bank branch but several, to open up in these two districts, especially in Mpongwe district.
For instance, the mission observed that in Mpongwe, in the 2011 farming season, the Food Reserve Agency (FRA) paid out a total of K52 billion (Kr 52 million) to small-scale maize farmers while an additional K7 billion (Kr 7 million) was paid to commercial farmers. Coupled with this, total sales from maize alone exceeded about K80 billion (K80 million) if total sales to agents other than the FRA was included. It was further observed that the district produces more maize than the other nine districts on the Copperbelt put together. In addition, it was noted that the payments made to the farmers were growing steadily as evidenced by the increase from K19 billion (Kr19 million) in 2010 to K58 billion (Kr 58 million) in 2011 while members of the Farmers Union had accessed about K2.4 billion (Kr2.4 million) in loans from banks outside the district for the 2010/2011 farming season alone. Furthermore, the Mission reported that 2,700 residents of Mpongwe, comprising Government/Civil Service employees and registered farmers use the financial services located either in Kitwe, Ndola or Luanshya. It must be noted that this number did not include other persons in the productive sector such as private businesses. Distinguished Guests, Ladies and Gentlemen, the report further observed that a total monthly wage bill of about K2.8 billion (Kr2.8 million) was paid out to the residents of Mpongwe in 2011. These funds did not include grants and other sources of funding utilized by various Government organs and private individual and businesses.