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ZCSMBA urges govt to support SMEs

ZCSMBA urges govt to support SMEs
Written by Chiwoyu Sinyangwe
Tuesday, January 27, 2009 4:52:27 AM

POVERTY levels in the country have continued to increase because there is a missing link between big businesses and small and medium entrepreneurs (SMEs), Zambia Chambers of Small and Medium Scale Business Associations (ZCSMBA) has observed.

ZCSMBA executive secretary Maxwell Sichula also regretted that the SME sector in the country continued to be getting more support from the donor agencies than the government.

Sichula, however, welcomed recent efforts by the government to develop a draft SME policy which was currently with cabinet, saying the move would give the sector a framework and strategic direction.

He also called for the speedy approval and implementation of the SME policy by cabinet.

“We have a long way to go in terms of addressing the SME sector which is the link between the big boys and the SMEs, and unless we address that missing gap, then I am afraid we will continue to wallow in abject poverty,” Sichula said.

“If the government does not support the SME sector, who will do it? We need to get our members of parliament to be serious, get the cabinet and all decision makers to do what is required in order to get the SME sector in Zambia moving. If it weren’t for the cooperating partners, the little that is being done to support this sector would not have taken place.”

Some of the cooperating partners that currently support the local SME sector include USAID, Netherlands, the Finnish Embassy and the European Union.

And Sichula also observed that despite most financial institutions in the country introducing products aimed at the SME sector, the initiative did not benefit the members of ZCSMBA owing to the irregularities in terms of classifying the SMEs by the commercial banks.

“Our financial institutions talk about developing products that are intended for this sector, but when you actually go to them, you find their understanding of the SME is totally different,” said Sichula.

“I think we have to agree that when we talk about SME, we are talking about not an orange and not an apple and that way, whatever programme they will come up with, they will be addressing the same clientele.”

Labels: MAXWELL SICHULA, SMEs, ZCSMBA

posted by MrK @ 4:52 AM