The Bank of Zambia (BoZ) has called for increased climate finance products and services in tandem with the Government’s climate resilient agenda.
BoZ Director-Non Bank Services Freda Tamba said the Government wants financial institutions in the country to fund climate smart innovations by the citizens.
“I have a lot of recommendations, the first is to urge the micro-finance institutions to consider funding climate resilient innovations by the Small and Medium Enterprises (SMEs) ,” Ms Tamba said.
She said on the sidelines of the launch of the newly refurbished Entrepreneurs
Financial Centre (CFC) in Kitwe at the weekend that environmental awareness in micro-fins should integrate their businesses.
Ms Tamba said climate change resilient initiatives should be funded so as to encourage those making efforts in society to cope with climate change and get the much needed support.
“Being climate smart should also start with how the offices and banking halls are designed, instead of relying on air cones, more ventilations could be made available coupled with reduced use of plastic bags among others,” she said.
Ms Tamba said lenders should look for customers making changes in reducing climatic impacts and support them.
She said micro-fins should not take advantage of the SMEs but push for win-win transactions while maintaining transparency as she observed that in some cases SMEs getting loans know little about the contents of the contract.
Ms Tamba also called for robust client complaints handling procedures to retain customers and remain credible.
She said the Central Bank would continue providing a conducive environment for the financial sector to thrive. Ms Tamba said recently the Government passed regulations that were providing operational space in health institutions in a bid to expand financial inclusion in the country.