SME sector key to robust economy – BoZ

Bank of Zambia Deputy Governor for Operations Bwalya Ngándu says by building a strong and robust small and medium scale enterprise (SME) sector, Zambia can find medium to long term solutions required to build an equally robust and self sustaining economy.

Speaking he delivered his keynote address at a small and medium scale enterprises (SMEs) training workshop organized by Standard Chartered Bank in Lusaka,Dr Ngándu says a strong SME sector can change Zambia’s dependence on imports of consumption goods through an enhanced capacity to produce more goods domestically thus reducing the need for the vast array of unnecessary imports as well as enabling the country to make greater penetration into the market, especially in countries within the regional economic groups of COMESA and SADC.

Dr Ng’andu says this can earn the country more foreign exchange needed to boost the stability of the Kwacha.

He adds that by dissipating the demand for foreign exchange through reduction of unnecessary consumption imports and increasing exports earnings, a more stable environment in the foreign exchange market will be created which is so much needed for businesses to grow.

Dr Ng’andu further states that SMEs are potentially a great source of profitable business for commercial banks which satisfies an important concern of banking business; which is to make money for investors.