The Federation of Association of Women in Business (FAWIB) has bemoaned the inability by its members to access bank loans to expand their businesses.
Speaking in an interview with ZANIS in Ndola yesterday, ZAWIB chairperson Ndola chapter Suzan Kawandami said members of her association had difficulties in accessing loans from banks because financial institutions were charging exorbitant interest rates.
Ms. Kawandami said members from her association could not afford to settle loans with high interest rates because they fell in the category of small scale entrepreneurs.
She added that even micro finance institutions were demanding high interests and had conditions which did not favour growing entrepreneurships.
She has since called on government to intervene and ensure that micro finance institutions and banks were regulated for the growth of small and medium entrepreneurs.
She however noted that government through the Ministry of Commerce, Trade and Industry, has helped the association to penetrate the market in the Southern African Development Community (SADC) and the Common Market for East and Southern Africa (COMESA) region.
Ms. Kawandami said her association penetrated the markets in the SADC and COMESA countries with textile products and crafts, which are the products that are most marketable in the regional market.
She said the products were fairing well on the regional markets although they still had a challenge of penetrating the global markets.
ZAWIB is holding a product exhibition in Ndola which runs from Tuesday to Thursday this week.
The exhibition ran concurrently with the commemoration of the ‘Woman Entrepreneur’ which fell on Tuesday, 7th October 2008.
ZANIS/LNN/KSH/ENDS
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The banks unforttunately believe in the theory that “You use other people money to make money”. Just imagine they use your money at the interest of say, 1.5%, and when you want to borrow (Your money) you pay interest of 29%. You also pay tax on interest you get and medical levy. It is very sad.
Dr shock ni ma sports?
Where is Ba Pragamtics and Ba free Market Economy, can you please comment on these Economic issues, i really like you analysis.
who are you women?PF cadres !!!tough luck coz Poor Finishing doesn’t have intelligent MPs…
The global financial system has been very tight ever since the economic ‘bubble’ burst. Institutions are afraid to lend to each other for fear of a default. Its not that interest rates maybe too high, i think its the fact that its very hard to access funds at the moment. Im not sure what the Zed interest rate is, but you would expect BoZ to drop them so as to stimulate the economy. But then again, credit is tightened and inflation must be kept low. Its truly a paradox.
Ive also just checked the markets. The DOW is down 10%! It was up just a few days ago. The market is truly chaotic.
The cost of borrowing in Zed is just too high at +/-25%. The Kwacha is weakening; the price of fuel has remained high. This makes our country less attractive for production.It is the reason only extractive industry is booming (mining) because of the global price which has been relatively high. We are not ploughing the gains from mining to stimulate real growth in the economy.It looks like any slump in the copper price will push us back to the pre 90’s dry. These are issues these mangoe head poli-trickians ought to talk about.But again the electorate only want hand out and cheap lies! My God Save us!
I will never understand why we still taxes after getting a loan which is also taxed. This should not be the case and no other country does this.
Let RB think up something, since is ready to do anything to be in power. I heard he is ready to undress in public if this will get him power.
But mu Zambia nimwa chabe chabe jst last year Stanchart reduced base rate from 30% to 19% % now this year they have increased to 21% so is ZANACO from 15% to 19% increase.
Can we pliz seem to sustain the so called economic gains.
Ni HH chabe