Support entrepreneurship
By NANCY MWAPE
BANK OF Zambia (BoZ) Governor Caleb Fundanga says there is need to stimulate entrepreneurship as it forms the engine of economic and social development that generates employment.
Dr Fundanga said it is important to realise that individual entrepreneurs as well as small and medium enterprises (SMEs) form the engine of economic growth and social development for Zambia.
He said this in Lusaka on Tuesday night when officiating at the launch of the K100 million VentureCompetition by Intermarket Bank and Intermarket Securities in partnership with the Lusaka Stock Exchange.
Dr Fundanga said the banking sector has over the years witnessed significant growth in consumer lending.
“As a matter of fact, on a sector basis the personal loan category has been the largest recipient of total credit in the recent years and accounted for 22 percent in November 2009,” he said.
He said SMEs have also significantly benefited from credit expansion.
He said credit expansion has no doubt brought significant benefits to the economy as resources are increasingly channelled to the lower end of the market.
Dr Fundanga said the small number of educated Zambians engaging in entrepreneurial activities limits the scale of indigenous businesses as evidenced by the non-participation of Zambians in major sectors of the economy like mining or manufacturing.
He said the central bank will continue to spearhead financial sector development to strengthen the financial sector as well as guide efforts to realise the vision of a stable, sound and market-based financial system that supports efficient mobilisation and allocation of resources.
Dr Fundanga commended Intermarket Banking Corporation for its commitment to providing innovative products and services on the market.
He said the bank has brought an array of products and services that specifically target the SMEs and in some cases business start-ups.
“It’s interesting to note that VentureComp 2010 is a business plan competition for students in all universities, colleges and other institutions of higher learning. The spirit of competition is to foster entrepreneurship amongst our young people,” he said.
And speaking at the same function, Intermarket Bank and Intermarket Securities managing director Subhrendu Chatterji said the competition is a further signal of the innovative way that the financial sector is contributing to Zambia’s economic development.
Mr Chatterji said the financial sector in Zambia was evolving rapidly, spurred by increasing competition, stable economy and supportive policies.
He said the competition will be vying to start or build a real business.
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