Financial Analyst, Henry Muleya, has emphasized the need for government to regulate and monitor money lenders operating in the country.
This call comes amid growing concerns over the persistent exploitation of citizens by unlicensed money lenders.
Speaking in an interview with RCV News in Lusaka today, Mr. Muleya urged government to place money lenders under the regulations that govern Microfinance Institutions.
“This will enable the Bank of Zambia to provide oversight and ensure the contracts offered by money lenders are acceptable within the banking sector,” said Mr. Muleya.
He noted that the lack of regulation has led to an increase in unlicensed money lenders who often engage in predatory lending practices.
Mr. Muleya stressed the need for the government to introduce laws that protect citizens and regulate the contracts offered by money lenders.
He further recommended that penalties for unlicensed money lenders should be similar to those imposed on individuals operating financial institutions without a license or oversight from the Bank of Zambia.
By Elizabeth Mutale
