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CEEC, disbursement mode

CEEC, disbursement mode
By Caroline Mwanza
Saturday September 20, 2008 [04:00]

Having attended the stakeholders’ consultative workshop the CEEC hosted at Mulungushi International Conference Centre on Wednesday 17th September 2008, I would like to advise the Director General and the Commissioners of the Citizens Economic Empowerment Commission as follows:

K150 billion (about US$35 million) is not a lot of money for empowerment, but it is a good start. It can have significant development impact depending on how it is used.

From what I have gathered, the Commission has taken the lazy, tired, tried and failed approach of working through commercial banks to deliver a development programme. Working through commercial banks, particularly to deliver citizens economic empowerment, will not work in Zambia.

This channel has failed to deliver even in South Africa where other routes are proving more effective. Who in Zambia has not witnessed the dismal performance of other development funds entrusted to banks?

What CEEC is involved in is SME development plain and simple. It needs to work with development organisations that are specialised in supporting SMEs.

The banks should simply open bank accounts for the SMEs and for non-banking financial service providers that are better-placed to design and follow up packages for SMEs. Same old song: no impact strategy, work through banks, ZNFU, etc.

Please, keep it simple and work with a few organisations that know what they are doing. Listen and have the courage to stay away from past causes of failure.

Let us learn to compare ourselves with where other countries in the region are instead of continuously being content with nothing. Is CEEC headed in the right direction?

Labels: BANKING, CEEC, DEVELOPMENT, SMEs

posted by MrK @ 5:20 AM