10th February 2024
FOR IMMEDIATE RELEASE
Lusaka, Zambia – [Date] – Following the recent announcement by the Bank of Zambia (BoZ) regarding the increase in the statutory reserve ratio from 17% to 26%, Chisebwe Fumbeshi, CEO of Fairworld Properties Limited, has addressed the implications of this policy change for the real estate sector and the broader Zambian economy.
The BoZ’s decision to raise the reserve ratio is a significant measure aimed at controlling the country’s high inflation. This step is crucial for maintaining economic stability and curbing inflation, but it also impacts the real estate market, affecting investments by individuals and businesses.
The increase in the statutory reserve ratio means that banks will need to hold a larger portion of their deposits in reserve, thereby reducing the funds available for lending. This decrease in lending capacity is likely to lead to higher interest rates and tighter credit conditions for borrowers. In the real estate sector, this could result in decreased affordability and accessibility of property loans.
It is vital for stakeholders in the real estate sector to recognize the potential challenges this change presents, including slower economic growth and shifts in investment strategies.
Despite these challenges, we remain optimistic about the long-term prospects of the market and are committed to delivering value to our clients and contributing to the sustainable development of the Zambian economy.
Mr. Chisebwe Fumbeshi
Valuation Surveyor & Business Consultant
Chief Executive Officer
Fairworld Properties Limited
+260 966 780192
chisebwe@fairworldproperties.com
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