Securities legislation in Zambia: a plea for change

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Periodical article

Title:	Securities legislation in Zambia: a plea for change
Author:	Ailola, D.A.
Year:	1989
Periodical:	Lesotho Law Journal: A Journal of Law and Development (ISSN 0255-6472)
Volume:	5
Issue:	2
Pages:	305-336
Language:	English
Notes:	biblio. refs.
Geographic terms:	Zambia Central Africa
Subjects:	credit law securities legislation Investment guarantees
Abstract:	Despite some measures taken by President Kaunda of Zambia since 1968 to force banks and other financial institutions to assist indigenous Zambians with loans to run business enterprises, no significant increases in the level of credit to Zambians occurred between 1968 and 1973. According to bankers, this was mainly due to the inability of most Zambian credit seekers to produce acceptable forms of security. In response to these problems the government introduced various enactments to help Zambians to secure loans: The Agricultural Credits Act; the Trade Charges Act; the Land (Conversion of Titles) Act, 1975, and the Lands and Deeds Registry Act; and the Credit Guarantee Scheme. This paper highlights some of the basic defects characterizing these enactments. It argues that it is impossible to create perfect securities and that it is now time the Zambian government encouraged or devised a system of spreading the risk away from the banks and depositors to society at large by means of insurance or public guarantee.