Financial institutions should reduce lending rates for SMEs – Mubanga

MINISTER of Small and Medium Enterprise Development Elias Mubanga has appealed to financial institutions in Zambia to consider reducing the lending rates to small and medium enterprises (SMEs) in Zambia.

Speaking when he officiated at the launch of the Trade and Development Fund (TDF) and Pangaea Add and Capital revolving line of credit signing ceremony in Lusaka, Mubanga said most SMEs in Zambia have a challenge in accessing financing.

The minister said in order for the government to address the challenges faced by SMEs, there is need for the private sector, civil society and international partners to work together in creating an environment that enables growth of various economic sectors which will, in turn, bring about development.

He noted that his ministry is working closely with financial institutions to develop innovative solutions which meet the needs of SMEs in Zambia.

Meanwhike, Trade and Development Fund executive director Gloria Mamba said the Pangaea Add and Capital revolving line of credit will aim at promoting local content in the Zambian mining supply chain, give access to finance for up to an additional 100 SMEs in the first year, promote extension of service to women-owned and led business, as well as increase employment and involvement of women and youth in the mining supply chain.

Kalemba April 25, 2023