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SMEs will have significant bearing on economy – Melu

SMEs will have significant bearing on economy – Melu
Written by Nchima Nchito Jr
Thursday, October 01, 2009 1:14:32 AM

STANDARD Chartered has revealed that SME banking is an important strategic business for the bank and a key platform for its future growth.

During the launch of the Small and Medium scale Enterprise (SME) month in Lusaka on Tuesday, Standard Chartered Bank managing director Mzinga Melu thanked the government for making the development of the SME sector a priority.

“SMEs account for almost 90 per cent of the total number of firms in Zambia and they employ over 80 per cent of the potential labour force in the country,” she said. “We can therefore see that just due to sheer numbers, the growth and development of the SME sector will have a significant bearing on economic development in Zambia.”

Melu said SMEs accounted for between 30-60 per cent of sub-Saharan African gross domestic product (GDP).

“As part of our strategic positioning in 13 key African markets, the bank has SME banking units in Botswana, Ghana, Kenya, Nigeria, Tanzania, Uganda, Zambia and Zimbabwe,” Melu said.

She said projects such as the SME trade corridor were meant to assist small entrepreneurs conduct cross-border business across Standard Chartered’s unique international network of over 70 markets.

“It is under this initiative that we look for ways in which to assist our SME customers to grow their business with Asia in general and China in particular,” said Melu.

And commerce minister Felix Mutati said the government was eager and willing to provide a listening ear to SMEs.

Speaking at the same function, Mutati said the government was open to partnerships with SMEs to attain economic growth.

He said calls by the SME sector to balance out the current taxes and put duties on imports to protect the local industry would soon be dealt with by the Minister of Finance.

Mutati urged the banks to simplify banking for the SME sector and reduce on the bureaucracy of obtaining capital from financial institutions.

Labels: ECONOMY, FELIX MUTATI, MIZINGA MELU, SMEs

posted by MrK @ 12:15 AM