(DAILY MAIL) Finance bank targets SMEs

Finance bank targets SMEs
By NANCY MWAPE

FINANCE Bank has launched a K100 billion credit facility for Small and Medium Enterprises (SMEs) to grow their business operations. Speaking at the launch of the SMEs loan facility called Twikatane, Commerce Trade and Industry Minister, Felix Mutati, said in Lusaka yesterday that SMEs have created over one million jobs and 70 per cent of the country’s Gross Domestic Product (GDP).

Mr Mutati said the major challenge faced by SMEs in the country was accessing financing. He added that Government had in the past come up with loan programmes targeted at SMEs, which had failed due to high levels of delinquency.

He said as Government, it shall strive to ensure that interest rates by commercial banks were reduced to inflation levels by creating competition in the financial sector.

Mr Mutati said to promote growth of SMEs, Government had reduced the period required to register a company, introduced a credit reference bureau and would soon launch an SMEs claims court.

He further added that Government would on Tuesday next week launch the one-stop border post in Chirundu that will be operational by October 1.

The minister said most SMEs were too shy to approach commercial banks for loans, saying that what was killing a number of them was lack of a clear picture of the business to manage.

“Honesty, faith and confidence is the only balance sheet that SMEs should have if they are to grow their businesses,’’ he said.