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President Hakainde Hichilema has called on financial institutions to reduce lending rates to enable Micro, Small, and Medium Enterprises (MSMEs) in Zambia to access affordable financing and grow their businesses.
Speaking at the official opening of the two-day National MSME and Cooperative Indaba at Mulungushi International Conference Centre in Lusaka, Hichilema said that despite government efforts over the past four years to reduce the cost of doing business, MSMEs continue to face challenges in accessing affordable finance.
The Indaba is being held under the theme “Building Resilient and Competitive MSMEs and Cooperatives for the African Continental Free Trade Area (AfCFTA).”
Hichilema urged MSMEs to improve product packaging to gain access to regional markets and attract financing from institutions within regional blocs such as the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA).
He said government had introduced a policy of “positive discrimination,” which prioritises the procurement of local products before considering imports, and urged MSMEs to take advantage of this opportunity.
“One of the things your government is doing is promoting industrial yards such as Multi-Facility Economic Zones, which you MSMEs should utilise. MFEZs are not only for bigger companies but also for smaller ones that want to expand. Last week we opened a Starch and Glucose Factory in the Lusaka South MFEZ, which will create linkages for small businesses,” Hichilema said.
He reaffirmed government’s commitment to creating an enabling environment for MSMEs, describing the sector as the engine of economic growth, job creation, and industrial expansion.
The President, however, expressed disappointment that some Zambians were “quick to complain” instead of taking advantage of available opportunities.
“My administration is providing opportunities which MSMEs should take advantage of and stop complaining all the time,” he said.
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Meanwhile, Zambia Association of Manufacturers (ZAM) President, Ashu Sagar, said the MSME and manufacturing sectors were laying a strong foundation for Zambia’s future GDP growth.
“These sectors are being supported by consistent government policies which we never had in the past. The manufacturing sector has seen huge investments due to favourable environmental conditions,” Sagar said.
Similarly, African Continental Free Trade Area (AfCFTA) MSME Development Senior Advisor, Abibata Mahama, said the inclusion of MSMEs in the AfCFTA framework was essential.
“The inclusion of MSMEs in the AfCFTA framework is not optional, as they are essential drivers of trade and development,” she said.
Earlier, Lusaka Province Minister, Sheal Mulyata, said the Indaba served as an important platform that brings together diverse MSMEs and cooperatives to share experiences and opportunities for growth.
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