By Witu Sindano Credit analysts and public finance experts have called for stronger lending controls to stop loan defaults, warning non‑performing loans have weakened revenue, investment, and growth. In an interview with Lusaka Star, Credit Analyst Stella Chilumba said that policies implemented through the Credit Reference Bureau are vital in helping financial institutions trace accounts […]

By Witu Sindano

Credit analysts and public finance experts have called for stronger lending controls to stop loan defaults, warning non‑performing loans have weakened revenue, investment, and growth.

In an interview with Lusaka Star, Credit Analyst Stella Chilumba said that policies implemented through the Credit Reference Bureau are vital in helping financial institutions trace accounts and assess borrower eligibility before extending credit.

“If a customer has a non‑performing account over time, it is not right practice to extend more credit to them,” Chilumba said.

She added that requiring additional security could help limit excessive borrowing among public sector workers.

She called for a single credit application portal for government employees to enhance accountability and enforce lending limits.

Meanwhile, Public Finance Researcher Robinson Nakambo said the challenge lies less in introducing new regulations than in ensuring compliance with directives issued by the Bank of Zambia.

“The problem is that enforcement occurs after default has already happened, making it a matter of responsible lending practices,” he said.

He stressed the need for proper authentication of borrowing documents to ensure banks verify employment status and identification before approving loans.

The experts warned that continued access to credit by borrowers with non‑performing accounts could have wider economic consequences, including reduced government revenue, lower business investment, and weakened consumer spending.