Last week we covered what interest rates are, their types and essence to the broader economy. In this week’s edition of Monday Opinion, we explain why the proposed Government recapitalization of state-owned banks isnot a panacea to lower interest rates in Zambia. Zambia is among countries in Africa with high lending rates. Currently, we have commercial banks charging rates on loans as high as 35% per annum or 26.5% margin abovemonetary policy rate.Formicrofinance institutions, interest charges go as high as 77% per annum or 68.5 % margin above the policy rate.Accordingly, this is felt on Government’sdebtrepayment obligations,reduced investment by the private sector and stifled consumption by households.