ZIBA urges govt, private sector to utilise SMEs
ZIBA urges govt, private sector to utilise SMEsBy Joan Chirwa
Thursday February 22, 2007 [02:01]
THE Zambia Indigenous Business Association (ZIBA) has said the government and the private sector associations should utilise small and medium scale enterprises (SMEs) to help achieve economic development in the country. And Private Sector Development Association chairperson Yusuf Dodia said the government should pay serious attention to problems faced by SMEs to ensure that the targeted economic growth is private sector led.
During a World Bank/Economics Association of Zambia discussion on private sector equity and development in Zambia held in Lusaka on Tuesday, ZIBA chairperson Phillip Chilomo said most countries had developed their economies through SMEs. "SMEs have made most of the developed countries move. It is not the super companies that have made their economies be what they are today, it is the SMEs," Chilomo said.
He further said there should be broad-based participation in activities that are aimed at promoting economic development in the country. "We need indigenous businesses in this country, which are going to drive our economy forward. When I say indigenous, I am not talking about having blacks only running business here. We can combine efforts regardless of one's race to develop this nation, as long as whatever is done is meant to benefit the local economy," Chilomo said. "For example, a number of industries have folded and left the country because they were not indigenous. Most of them have left after the tax holiday is over."
And Dodia said enhancing the performance of the SMEs would contribute to Zambia's economic growth. The government has in this year's budget targeted GDP growth of even per cent from 5.8 per cent achieved last year, and announced that the growth would be private sector led.
Dodia further wondered why incentives for investments announced in this year's budget were based on the Zambia Development Agency (ZDA) when the institution had not yet been concretised. "As long as the ZDA remains in its current form where there is just an interim board and a temporary management, we see that most of the things announced in the budget might not happen," said Dodia.
During the discussion, commerce permanent secretary Davidson Chilipamushi said non-state actors should have an input in ensuring that the private sector development reforms were realised.
posted by MrK @ 7:33 PM
1 Comments:
Excellent point and all true. Most developed countries have 1 SME for every 20 citizens. These companies need to be stimulated, a healty environment should be created for them. Instead, we see 50% corporate tax, 30% income tax (PAYE). And on top of that, we see all kinds of competition falsifying measures that benefit foreign companies - no taxes, credit, no social responsibility, etc. All in the name of attracting FDI (foreign direct investment).
What is more than that, all major corporations started out as SMEs. Wal-Mart started out as family grocery store, that took two generations to build.
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