Valuation Chapter The Surveyors Institute of Zambia Business Breakfast 17th May 2016 Speech by Mr Chisebwe Fumbeshi, Chairman

Valuation Chapter
The Surveyors Institute of Zambia
Business Breakfast 17th May 2016
Speech by Mr Chisebwe Fumbeshi, Chairman

Dr. Bwalya Ng’andu BOZ Deputy Governor Operations
Invited Guests
Valuation Surveyors Registration Board Members
Surveyors Institute of Zambia President & Council members
Fellow Valuation Surveyors
Media House
Ladies and gentlemen

Good morning, I welcome you all to this Business Breakfast for the Valuation Chapter of Surveyors Institute of Zambia. Dr. Ng’andu thank you for taking time off from your busy schedule to come and be part of this breakfast, whose theme is “The Role of Valuation Surveyors in the Financial Sector”.

Ladies and gentlemen
The Valuation Chapter of Surveyors Institute of Zambia promotes high standards of professional & ethical conduct for the Valuation profession.
Governor
The Valuation Profession in Zambia dates back as early as 1890, when the British Administration introduced the English
Tenure system in the territory. The determination of value of properties for all purposes in accordance with Chapter 207 of the Laws of Zambia is responsibility of Valuation Surveyors. It is a criminal offence for anyone to carry-out Valuation activities or purport to be a Valuation Surveyor. We need to protect the interest of players in the financial sector from imposters at all cost.

Governor
Ladies and gentlemen

The financial sector is an essential component for the growth of an economy. Zambia’s financial sector is dominated by banks, accounting for about 90 percent of the financial sector assets. The Valuation profession is vital in the day to day interaction of the Banks and their clients for the determination of the Value of property pledged as collateral, and when things go wrong to advice on sale price.
The Financial Sector will benefit from more property owners appreciating the importance of accessing Valuation Services regularly. In a recent random survey carried out in Lusaka and Copperbelt provinces, 77% of respondents were not aware of the importance of carrying out a valuation before purchase and regularly after acquisition. In the same survey of 1,500 property owners 69% did not know that cost of building and value are different. Knowing the Value of the property provides information for loan-to-value ratio needed in negotiations and reconciliations during transactions. Due to changes of economic factors that in turn affect the property market, property owners and financial institutions ought to have regular property valuations at least once a year.

Governor
Ladies and gentlemen
The Valuation Chapter of SIZ is in the process to developing Zambian Valuation Practicing Standards which will be in conformity with the Royal Institution of Chartered Surveyors (RICS) and take into consideration Zambian Laws and uniqueness of our property market. This will improve the services being provided to financial institutions and the public at large. In line with Part IX, Section 55 of the Bank of Zambia Act No. 43 of 1996 and Section 78 of the Banking and Financial Services Act of 1994, as amended in 2000, Bank Supervision Department of Bank of Zambia is responsible for licensing, undertaking prudential supervision and regulation of banks, so as to promote safe, sound and efficient operation and development of the financial system. Therefore, we urge Bank of Zambia to issue guidelines on how Banks and financial institutions engaged or empanel Valuation Surveyors to bring harmony to the sector and growth of our profession.

Fellow Valuation Surveyors
There is an increase in demand globally for efficient, innovative and reliable valuation services. In-order for us to improve our profession we need to improve our services by investing in robust market research, modern technology and spread our services to Capital Markets and Securities. This is only possible when we are coordinated in the way clients engage us and how we conduct ourselves. It’s time we implement standards that will promote our profession and ensure that our clients get quality world class results. Let’s do the right thing today for a better tomorrow.
Ladies and gentlemen
In conclusion, I wish to thank Bank of Zambia, Bank Supervision department in particular which has supported the development of the Valuation Profession in Zambia.
It is now my singular honor and privilege to call upon Dr. Bwalya Ng’andu, Bank of Zambia Deputy Governor Operations to address us.
Dr. Ng’andu, Sir!