ESTABLISH A BANK FOR TEACHERS BY TEACHERS – NAQEZ
The National Action for Quality Education in Zambia, NAQEZ has proposed for establishment of a bank for teachers by teachsers themselves.
In a statement, NAQEZ Executive Director Aaron Chansa said this must be done to avoid the “current punishing bank interest rates on loans”
Mr Chansa said as it stands, three quarters of teachers in Zambia are highly indebted chiefly because of contracting very expensive loans meant for furthering their teaching qualifications.
“Since commercial banks and other financial institutions are still still offering poverty- inducing loans, there is urgent need for the teachers in Zambia to take advantage of their big number to quickly and collectively establish a bank that would offer them loans at 5% or less. This monumental teat will, without doubt, help most of our struggling teachers to cheaply offset the current loans they are painfully servicing.” He said
Mr Chansa added that if Government allows this formation and each of the 135,000 public service teachers contributes a K450 through the payroll, more than K60 million would be raised and Zambia would become the second country in Africa to set up a financial institution for cheaper loans for teachers.
“Because loan recoveries will be done through the Government payroll and that professionals will be employed to run the bank, success and sustainability are guaranteed.” He said.
“In Kenya, the Mwalimu National Sacco has powerfully helped thousands of teachers to avoid expensive borrowing. In Australia, the Teachers Mutual Bank is a major economic tool teachers have been using for personal prosperity.” He added.
And Mr Chansa said that once formed in Zambia ,the Bank would be owned and overseen by teachers.
“It will be governed and overseen by their own board. The teachers in respective provinces will elect one from among themselves to sit on the board. These board members will hire a competent management team to ethically and credibly run the bank. Profits made by this bank will be reinvested into the business for an increased number of cheaper loans for teachers.” He said.
“NAQEZ hopes that Government, all teachers and other stakeholders will embrace this proposal. Once in place ,the bank will empower and motivate teachers for improved quality of education in the country.” He added.