Poor funding to SMEs hinders their progress
Wednesday, October 14, 2009, 13:34
The Zambia Chamber of Small and Medium Business Associations (ZCSMBA) has asked government to fully establish the Small Medium Enterprise fund under the Zambia Development Agency (ZDA).
ZCSMBA Chairperson Maxwell Sichula said there was need for government to ensure that the SME funding under the ZDA act was fully operational to make the sector grow.
Mr. Sichula told ZANIS in Lusaka today that currently, the SMEs were faced with a lot of challenges in trying to expand their businesses hence the need for government to make the funding accessible.
He explained that if the fund is made available, many SMEs will be given a chance to grow, therefore contributing positively towards national development.
Mr. Sichula noted that currently, the growth of the SME sector poses a challenge to the country’s economy as many of them have failed to meaningfully participate in the economic expansion programmes of the country.
He stressed that this was why government should support initiatives aimed at promoting small business.
Meanwhile, Mr. Sichula has expressed happiness with government‘s decision to table a warehouse protection bill before parliament.
He pointed out that if passed, the bill will go a long way in improving the present storage operation systems in the country therefore benefiting a lot of his members.
He has since called on Members of Parliament to support the bill when it is tabled in the house.
During his 2010 national budget address to parliament, Finance and National Planning Minister Situmbeko Musokotwane announced that a warehouse bill will soon be taken to parliament.
[ZANIS]
Labels: MAXWELL SICHULA, SMEs
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Sichula notes positive change in govt’s attitude towards SMEs
Written by Chiwoyu Sinyangwe
Monday, March 02, 2009 2:30:08 AM
THE government has now started listening to the demandsof small entrepreneurs, Zambia Chamber of Small and Medium Business Association (ZCSMBA) chief executive officer Maxwell Sichula has observed.
Closing a five day Zambia Development Agency (ZDA) organised seminar on Business Plan preparation in Lusaka on Friday, Sichula said the recent draft policy on small and medium-sized enterprises (SMEs) and the recently launched Citizens Economic Empowerment (CEE) Fund were some of the government’s response to the cries of local entrepreneur.
Sichula also observed that no matter how much foreign direct investment came into the country, Zambia would only be developed by local entrepreneurs.
“Government is now listening to us. The last two to three years, we have made so much noise in terms of lobbying and this has been sufficient because we are seeing government responding more,” Sichula said. “The draft policy which now is with Cabinet will create a legal framework where we can develop and promote this sector.”
Sichula however observed that commercial banks were still averse when it came to offering their services to small and micro entrepreneurs.
He said ZCSMBA was optimistic that the CEE Fund would help to bridge the vacuum in finance created by commercial banks.
“The banks are not interested in working with you as long as you are a small business. Now the CEEC has a fund to help you grow,” he said.
Sichula also implored the participants to put into practice the knowledge gained from the workshop.
He also called for collaboration among entrepreneurs in similar fields to avoid creating unnecessary competition among themselves.
Sichula also observed that local entrepreneurs lacked as much knowledge on business plans as the funds itself.
And ZDA director for micro and small enterprises division Windu Matoka said the agency was this year targeting to train an increasing number of Zambians venturing into entrepreneurship.
Matoka, who was the focal person for the seminar, said ZDA was ready to provide the platform and that participants only needed to pay towards logistics.
Matoka also said micro and small enterprises division had this year alone trained over 100 local entrepreneurs in business management skills.
The five day workshop drew participants from about 35 existing local entrepreneurs from some selected parts of the country.
Labels: CEE, MAXWELL SICHULA, SMEs, WINDU MATOKA, ZCSMBA, ZDA
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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
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2008 was a successful year for entrepreneurs, observes Sichula
Written by Nchima Nchito
Thursday, January 01, 2009 8:07:34 AM
ZAMBIA Chamber of Small and Medium Business Associations (ZCSMBA) executive secretary Maxwell Sichula has described 2008 as a successful year for entrepreneurs.
In an interview, Sichula said 2008 had been marked by positive events in terms of entrepreneurship.
“The African Capacity Building Foundation Project is a good example. Though this was signed last year (2007), implementation only begun in 2008,” Sichula said.
He said this was a US $1.7 million (about K8.3 billion) project which was meant to build capacity among member organisations.
“The year was also characterised by support from the state, stakeholders and other cooperating partners,” he said.
“We had the Ministry of Commerce sponsoring some SMEs to travel to Malaysia to attend fares there so as to get exposure and develop contacts.”
Sichula added that the International Labour Organisation (ILO) in conjunction with other cooperating partners had also launched a K24 billion project for SMEs.
“Under the business development voucher scheme which is a three-year programme, resources have been committed to develop the supply and demand side of business,” he said.
Sichula further said his organisation had also managed to secure funding from the International Finance Corporation (IFC), a World Bank financing arm, to fund three programmes and a memorandum of understanding (MoU) had been signed to that effect.
He however said the association had faced numerous challenges faced during 2008 as well.
“One of the biggest challenges we faced is market access. Some of our members found it very hard to access markets for their products,” he said. “In cases where they did manage, they had to face stiff competition from cheap and inferior imports.”
Sichula said the problem of accessing finance, though spoken of frequently, still posed a serious challenge.
“Granted, we are seeing many commercial banks coming to the aid of SMEs, like Finance Bank with the Twikatane scheme, there is still a lot that needs to be done if SMEs are to have the capital required to develop their businesses,” said Sichula.
“For 2009, my organisation will be working to solidify the advances made in 2008 and ensure the successful implementation of the various projects.”
Labels: MAXWELL SICHULA, ZCSMBA
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Falling copper prices have had an impact on small businesses – Sichula
Written by Nchima Nchito
Friday, December 05, 2008 11:41:41 PM
ZAMBIA Chamber of Small and Medium Business Association (ZCSMBA) executive secretary Maxwell Sichula has said falling copper prices have had an impact on small business in the country.
In an interview, Sichula said the SMEs, just like the rest of the economy, had not been spared by the decline in copper prices as some small businesses depended on mines for their survival.
“It has a tremendous effect on the entire economy including our SMEs. We have witnessed a fall in income generation all round,” he said.
Sichula added that some of his members where suppliers of various products and goods to the mining companies and the falling copper prices meant that there were less activities going on among suppliers of products to the mines.
“The problem of falling copper prices is compounded by the depreciation of the kwacha against the US dollar, making it very difficult for those of our members whose businesses comprise of importing products to resell within the country,” he said.
Copper prices have hit the lowest since 2005, with a tonne of the commodity being quoted at below US $4,000.
And Sichula has advised the government to establish structures and institutions that support entrepreneurship.
In an interview, Sichula said the establishment of supportive structures and institutions for entrepreneurs was important for capacity building among Small and Medium-scale Enterprises (SMEs).
“We need to empower as well as to build capacity. That is why we need to identify institutions that are going to organise SMEs together,” he said.
Sichula said while his organisation appreciated the efforts and work of institutions such as the Citizens Economic Empowerment Commission (CEEC), there were major limitations faced by the institution.
“Giving loans to individuals will have less trickledown effects in terms of benefits than if the loans were given to institutions with proper structures to embark on business,” he said. “We are just scratching the surface, there is so much that needs to be done.”
Sichula, however, acknowledged the efforts of the government in supporting SMEs.
“I am delighted that now we are seeing a deliberate government policy directed towards SMEs,” said Sichula.
Labels: CEEC, COPPER, MAXWELL SICHULA, SMEs, ZCSMBA
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Sichula demands quality products in textile industry
By Mutuna Chanda in Kitwe
Wednesday August 13, 2008 [04:00]
ZAMBIA Chamber of Small and Medium Business Associations (ZCSMBA) executive secretary Maxwell Sichula (above) has challenged small-scale textile manufacturers to improve the quality of their products to compete against smuggled goods. In an interview on Sunday, Sichula said the Copperbelt Province and other areas along the line of rail were a huge market for smuggled manufactured articles from the Democratic Republic of Congo (DRC).
"Those of our members in small-scale textile manufacturing are facing competition from smuggled chitenge materials for example from DRC," Sichula said. "The Copperbelt due to the increased economic activities is a huge market for chitenge material and salaula (second hand clothes) from DRC and other areas. And this is not unique to just the Copperbelt we have also seen trends in areas along the line of rail for example our colleagues from Zimbabwe are smuggling goods into the country and some of what they smuggle is stretching out to the Copperbelt. So our members have to work hard to improve on the quality of what they manufacture so that they face up with competition."
Sichula said small and medium business enterprises needed to lobby the government to urgently tighten border controls so that unfair competition could be dealt with.
"Our members need to make a lot of noise directed at the government to improve the border security situation to curb smuggling," Sichula said.
"If there's efficiency at the border and smuggling is minimised, even the government will benefit as they will increase their earnings through duty."
And Sichula said the officials from the Chililabombwe District Business Association were in touch with their Congolese counterparts on modalities of increasing trade between Zambia and DRC.
"We have been building a warehouse at Kasumbalesa for members to use for exports to Congo," said Sichula. "The Congo is a huge market for Zambian products especially food products.”
Labels: MAXWELL SICHULA, QUALITY ASSURANCE, ZCSMBA
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Sichula challenges SMEs to build capacity
By Kabanda Chulu
Friday August 01, 2008 [04:00]
ZAMBIA Chamber of Small and Medium Business Association (ZCSMBA) executive director Max Sichula has challenged Small and Medium Enterprises to
build capacity before establishing linkages with foreign investors. In an interview during the Smart Partnership Dialogue conference, Sichula said his organisation was using the forum to share its experience and also to learn from the successes of other countries.
“As much as we need linkages with foreign companies, a lot of effort is required to be done especially in the areas of governance and business management because at the moment, not all companies are on equal footing hence they can’t enter into such arrangements since they are weak, small and fragile,” he said.
Sichula said the ZCSMBA, which has 48 member associations across the country, was intending to attract foreign investors that would help local companies add value to their exports.
“This country is rich in various natural resources that can cater for almost all the sectors of the economy but we are lacking value addition hence exporting raw materials but through dialogue, we want to learn from our colleagues how they have managed to overcome the challenges facing the SMEs and how they have managed to grow the industry,” he said.
Sichula also expressed optimism that financing for SMEs would improve in the country following the increasing interest by several commercial banks to develop various financial products suitable for the sector.
Labels: MAXWELL SICHULA, SMART PARTNERHIPS, ZCSMBA
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Empower local entrepreneurs in mining sector, Sichula urges govt
By Fridah Zinyama and Kabanda Chulu
Friday August 03, 2007 [04:00]
ZAMBIA Chamber of Small Medium Business Associations (ZCSMBA) executive secretary Maxwell Sichula has urged the government to find ways of empowering local entrepreneurs in the mining sector saying foreign investors will leave when copper prices go down. And former Zambia Manufacturers Association (ZAM) vice-president Oswald Mwewa has said if given correct financial backing, the Citizens Economic Empowerment (CEE) Act will be implementable.
Meanwhile, in his message to the 81st Zambia Agricultural and Commercial Show which opened yesterday, President Levy Mwanawasa admitted that past economic policies had failed to address poverty levels and unequal distribution of wealth among local citizens. Commenting on the economic performance during the first half of this year, Sichula said several macro-economic indicators were moving in the right direction showing that Zambia’s economy was improving.
"The economy is going in the right direction when looking at the number of investments in key sectors such as mining, manufacturing, tourism and agriculture but the biggest challenge is that all these major developments are in foreign hands," Sichula said.
"It is not a grudge but a reality because very little is trickling down to ordinary Zambians. We want to see more local entrepreneurs getting empowered so that they stake their prowess in their own economy and foreigners should just top up and the government should find ways of doing this since you cannot rely on foreign investors when copper prices goes down."
He said Zambians were the only ones who could be able to sustain the current positive developments obtaining in the economy.
"There is no reason why we cannot sustain these achievements because local entrepreneurs have the capability to develop and drive this economy forward since all their profits will be retained locally," said Sichula.
And Mwewa said the CEE Act was a very good document but it would not help in empowering Zambians unless there was financial backing supporting it.
"As someone who was part of the committee set up to help come up with the CEE Act, I feel that government will only be able to successfully implement the Act if it avails resources to the citizens," he said.
Mwewa said availing finances to the citizens would go a long way in helping them to invest in major sectors of the economy.
"How can anyone who has good ideas contribute favourably to the economy unless they have access to finances?" he wondered.
Mwewa said one of the greatest challenges that most Zambians seeking to embark on business ventures have been experiencing was lack of adquate financing.
"If government, using the CEE Act, avails finances to the public, it will enable most citizens to embark on feasible business ventures that can contribute to sustainable economic development in the country," said Mwewa.
And President Mwanawasa said that government had an obligation to redress and remove various inequalities in the economy hence the creation of the Citizens Economic Empowerment (CEE) Act.
"The growth and development of the country cannot be attained without the participation of the citizenry. Therefore, the CEE Act is a tool for wealth creation and employment generation by integrating economically disadvantaged citizens into mainstream economy," said President Mwanawasa.
Labels: CEE, MAXWELL SICHULA, MINING, SMEs, ZCSMBA
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