Maravi

'Access to credit still challenge to SMEs'

'Access to credit still challenge to SMEs'
By Florence Bupe
Thu 24 Dec. 2009, 04:00 CAT

THE Ministry of Commerce, Trade and Industry has observed that access to credit has continued to be one of the greatest challenges for micro, small and medium businesses.

Technical Committee on Getting Credit chairperson Mildred Stephenson said during a media briefing to review the 2009 business year, that there was need to have policies in place that would create a broader credit base for the small and medium enterprises in the country.

“We have made strides as a committee to make access to credit easier for businesses, but there is still much more that needs to be done. We are working at getting a broader credit base, and we are already talking with commercial banks and other lending institutions,” she said.

Stephenson also disclosed that her technical committee was working with the credit reference bureau for credit data purposes. She called for legislation that would encourage the participation of the commercial sector in credit issues, especially in view of the establishment of a unified collateral registry system.

“We need to set up an environment that will ease access to funds by small and medium enterprises. In order to have the commercial sector on board, we need to establish and implement legislation that will govern them, and also make it easier for individuals and SMEs to obtain credit,” she said.

Stephenson disclosed that the committee was currently reviewing the legislation that is in place to make it more conducive for credit access.

And technical committee on doing business reforms chairperson Kayula Siame said Zambia was working towards ranking among the top 50 reformers globally, from the current 90 of 183 countries.

She said her committee was addressing this need through focusing on specific areas that would improve the whole process of doing business in the country.

“Zambia wants to be among the top 50 reformers in the world from the current 90, and to achieve this we are targeting specific areas such as prioritising entrepreneurs,” said Kayula.

Labels: CREDIT FACILITIES, MILDRED STEPHENSON, SMEs, TECHNICAL COMMITTEE ON GETTING CREDIT

posted by MrK @ 6:06 PM