Q FM Africa's Modern Radio
Finance Minister Situmbeko Musokotwane has called for increased investment from American companies in Zambia.
And the minister has stressed the need for the country to have a conducive environment that will enable small and medium scale business men and women to set up locally as opposed to embarking on risky ventures in the diaspora in search for greener pastures.
Dr Musokotwane says big American companies should come set base and invest in Zambia to create partnerships with local SMEs as opposed to local SMEs having to follow the big businesses in an effort to create synergies.
ABSA Bank Zambia plc in collaboration with the U.S International Development Finance Corporation (DFC) and USAID Zambia enterprise and development and Growth Enhanced Activity (EDGE) programme has partnered for a ten year financing programme for small and medium enterprises (SMEs) to provide up to us$20 million lending to the SMEs.
Officiating at the launch of the partnership, Dr Musokotwane has reiterated that access to affordable finance an issue that SMEs continue to say is a significant barrier to their businesses, and hence the significant of the partnership that has been launched.
The Minister has since urged the beneficiaries to pay back as required, lamenting that failure by beneficiaries of loans to pay back, has resulted in the economy not growing and various programs not bringing out the intended results to support more businesses.
And co-officiating at the event, small and Medium Enterprises Development Minister Elias Mubanga has stressed that SMEs are the backbone of Zambia’s economy hence the need for them to be provided with finances.
And speaking earlier ABSA bank Managing Director Mizinga Melu has explained that the partnership aims at strengthening the bank’s ability to provide loans to businesses in key sectors such as agriculture, manufacturing, tourism and clean energy which will in turn stimulate the economic growth.
Meanwhile USAID Mission Director Sheryl Stumbras, is confident that the partnership of supporting SMEs with finance will spur Zambia’s economic development.