SMEs SPEAK OUT ON MWANAKATWE'S APPOINTMENT AS COMMERCE MINISTER

SMEs in Lusaka's Kalingalinga Compound
From block making initiatives to welding, then basket making, just to name a few entrepreneurs located along Alick Nkhata road, adjacent to Kalingalinga compound in Lusaka.
This is where you find youths who have ventured into all sorts of initiatives from which they earn a living. A visit to the area finds various entrepreneurs busy polishing up their works in anticipation of that unknown buyer.
But it is not an easy venture for many youths. Several challenges hamper the development of many such ventures especially in the midst of stiff competition from foreign investors.
"Like our friends the Lebanese who are making blocks, we are having a challenge to compete with them, because they have big equipment hence making more blocks than us. We also want the accessing of funds to be easy for us, unlike what is happening now where politicians are the ones benefiting from the funds even if they are not in business." said one of the SMEs involved in block making.
This is just one case in point in the country. One major challenge that small and medium enterprises (SMEs) face today in Zambia is the source of business financing.
SMEs have a challenge in accessing loans from financial institutions in the sense that banks have standards which in most cases are not attainable by most of these small businesses.
One specific requirement which is demanded by commercial banks is the issue of collateral. It is not feasible for a small business to acquire a loan from a commercial bank in the absence of collateral and worse still, the banks have set minimum amounts that a business may allow to get which may be too high for a small business.
This is so because the banks are in business and use the client’s money to lend to their customers with a view to earning interest which forms the bulk of their income.
Newly appointed as new Minister of Commerce, Trade and Industry is Margaret Mwanakatwe and for her the promotion of entrepreneurship is key.    

Commerce Minister Margaret Mwanakatwe
"Ms. Mwanakatwe comes with an illustrious career in the banking sector both at home and abroad. She served as managing director for Barclays Bank-Ghana and as United Bank Africa director for business development, among other positions" President Edgar Lungu said when he swore in Ms. Mwanakatwe.
For many Small and Medium sized Enterprises her vast experience and knowledge in the development of commerce and trade is of great value to the economy.
In a country that is grappling with high levels of youth unemployment her first task is to encourage entrepreneurship.
"Things like insuring that we have infrastructure that encourages people to become entrepreneurs, ensuring that the youths are allowed to excel in the things that they trying to do, that's very, very important for me, we've created a lot of zones for economic development, what’s these zones doing to foster development, that's the key focus for me" Ms. Mwanakatwe said shortly after being sworn in.
    

      


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