Business

‘Financiers must take calculated risks in new growth sectors’

NOMSA NKANA, Lusaka
THERE is need for financiers to take well calculated risks to invest in new and unexploited sectors to unlock the massive wealth needed to create a thriving economy, the North-Western Chamber of Commerce and Industry (NWCCI) says.
Chamber president Josephine Makondo said that the chamber understands that investing huge resources in new and un-exploited sectors may be perceived as high risk by financiers.
“However, there is need to take well calculated risks if the massive wealth that is locked up in abundant resources will be unlocked to create a thriving economic environment for all players, including the financial institutions themselves,” she said in a statement.
Ms Makondo also called on all financial institutions to take up the challenge of re-inventing their financial models by adding products that are relevant to business start-ups in new areas of investment.
Financial Modelling is a tool that can be used to forecast a security or a financial instrument performance based on the historical performance of the entity.
The tool includes preparation of detailed company specific models which are then used for the purpose of decision making and performing financial analysis.
Meanwhile, Ms Makondo said there is need to create value chains if economic diversification is to become a reality in the region.
She said this can be achieved by creating linkages between project financiers, producers of agro-products, processors of finished products and retailers and exporters among others.
“The move will not only give birth to locally bred retail chain stores, restaurants and other institutions that will buy and sell the products but also create supply chains for businesses to participate in and grow to provide high quality employment for the citizens,” Ms Makondo said

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