The Zambia Chamber of Commerce Trade and Industry (ZACCI), has called for a deliberate policy to support the effective growth of Small and Medium Entrepreneurs (SMEs), in the country.
Speaking in an interview with ZANIS in Lusaka, ZACCI President Michael Nyirenda said the cost of accessing finance by SMEs from banks and other money lending firms is still very high.
Mr Nyirenda said the business environment is not very conducive to support the thriving of SMEs.
He noted that the country is not financing the SMEs as very few of them are given opportunities, like construction tenders among others.
Mr Nyirenda said most contracts are being awarded to foreigners and as such the money is not kept in the country.
He said at the same time local entrepreneurs are not accorded an opportunity to take part in the projects.
Mr Nyirenda said the country is endowed with massive capacity to take up many business ventures ranging from engineers to doctors but only need harnessing.
He said no one can develop the country apart from its people hence the need to prioritize the local entrepreneurs by giving them opportunities.
Mr Nyirenda called on government to put in place measures which will support the SMEs for growth and development.
SMEs are vital in improving the GDP of a nation and the policies in Zambia have not been as favourable as they should be. The sector remains highly neglected/
I personally having worked in The SME sector for a long time, I speak with authority and knowledge SME would help Zambia if well managed. Firstly they would help Edgar create his 500 000 jobs, at least a goo percentage of them, in addition productivity would be boosted. I am only trying to help! lweenu!
Zambia is owned by South Africans and, more recently, the Chinese. Over 70% of tax revenue is by foreign companies. The government has no plan to sort this out. They simply know about getting commissions and giving tax breaks to foreign companies (which already have cheaper sources of capital than local entrepreneurs). It is almost impossible to be an entrepreneur in Zambia unless you are connected to some PF official and are ready to be corrupt. ZACCI should be much more direct and tell these people what they are doing wrong.
Your advice will fall on deaf ears.
Private firms that started as the equivalent of SMEs are what built the greatest economy in the world which is the USA. These firms may have had shady backgrounds be they money from slave plantations etc but they were supported by insurance and lending insitutions. SMES are capable of employing more people in Zambia than any company but the govt must assist them, it doesn’t even have to be accessing loans, things like allowing SMEs to operate tax free as long as they are earning less than say k50, 000 in profit a year and employ at least 2 people is the kind of thinking the govt should adopt.