The Economics Association of Zambia says banks should consider waiving stringent loan requirements to boost access to finance for Small and Medium Enterprises-SMEs.
EAZ president Lubinda Habazoka says the stringent requirements such as provision of collateral and audited financials reports should be waived to enable the SMEs grow.
He says there is need for more meaningful access to finance for SMEs through addressing challenges that affect access to capital.
Dr Habazoka was speaking during a press briefing which follows the hosting of the successful national economic summit in Livingstone.
He said high interest rates have overcrowded the domestic money markets making commercial banks prefer locking liquidity in government securities as opposed to extending credit to SMEs.
Dr Habazoka also called on local businesses to support value addition purposes.
He said there is also need to de-risk and diversify the energy sector to cushion power deficits.
Dr Habazoka further called for easing of aviation costs, competitiveness and sustainability of the national airline as a way of reaping benefits by revamping dead industries such as horticulture.
Just where the hell did this silly Lubinda take his degrees in economics, Zimbabwe or Somalia? Honestly who in thjeir right sense of mind could suggest that banks waive the provision of collateral and audited financials reports in their debt layout due diligence process? Kauke wa pulumuka wena Lubinda. Lungu is your friend though he lied to you about making you finance minister so ask him to quit his stupid phenomenonof crowding out! I mean, the PF’s perpetual policy of running budget deficits is what stirs up interest rates! When an increase in useless government expenditure at a time of decrease in government revenue increases the budget deficit thus fueling a rise in interest rates. Maybe they did not teach you this simple basic principle of economics in Moscow, suntwe yebo!
The incompetent are leading madam/sir. It’s a new dawn and the weakest amongst us are being rewarded. Reading this disappoints me, but does not shock me anymore.
For the first time since becoming a PF surrogate, LH has spoken sense, but he should advise the BOZ to issue the directives just as they did on useless charges.
You call any of that drivel sense!
Lubinda’s Russian degree does not serve him well and he’s a disgrace to the profession
No Dr. Habaazoka. You are wrong. The govt is the one that has the responsibility to help and support small businesses, that is why it established CEEC, ZICB, YDF etc. There is also EFC which was created for helping MSMEs.
Whatever the banks do is guided by the Banking and Financial Services Act.
If one wants to lose his/her money, open a Bank account. the money will all disappear through so-called Bank charges. If, on the other hand, one wants to have a return on the money, one builds 48 houses. Sounds unreasonable but is the reality in Zambia.
Is Habazoka a bonzo?
No comment except that I dont understand how this Habanjoka can advise anyone on financial and economic matters. God help us if he is being considered for future minister of finance or was even considered before Honourable Bwalya Ng’andu was appointed.
More people need to believe in Zambian entrepreneurs and give them a chance.