ZAMBIA’S entrepreneurial landscape just got a major boost as President Hakainde Hichilema has launched the market booster loans through a Public Private Collaboration – a first of its kind aimed at giving Small and Medium Enterprises (SMEs), cooperatives and marketeers access to affordable financing.
The initiative, rolled out today in Lusaka, brings together the Ministry of Small and Medium Enterprise Development, the Citizens Economic Empowerment Commission (CEEC) and ABSA Bank.
Officiating at the launch, President Hichilema assured Zambians that the programme will help small businesses thrive as government remains committed to empowering the informal sector, which contributes 70% to the nation’s Gross Domestic Product (GDP).
President Hichilema said government expects as many people as possible to benefit from the programme and in turn contribute to the country’s GDP which stands at 70 percent for SMEs.
“Some people said UPND has forgotten us, no I haven’t. I haven’t forgotten you. This is why we are launching this project… the market booster loans,” the Head of State said.
“This launch is groundbreaking, not done before. The reason we conceived the idea of the Public Private Partnership, we knew that in the treasury, there was no money. That minister (Minister of Finance Situmbeko Musokotwane) found no money, only debt.. People with small businesses can now have access to affordable finance. This partnership to deliver for our people is great.”
President Hichilema encouraged recipients to use the loans wisely by prioritising business investments over luxury purchases.
“Don’t get a loan and buy a second hand VX, stay where you are, accept the money and put it into business,” he stated.
The scheme that was launched kicks off with a K1 billion fund but President Hichilema challenged the private sector to partner with the government to scale it up to K5 billion to ensure that as many Zambians as possible benefit.
Minister of Small and Medium Enterprise Development Elias Mubanga said the programme is set to inject life into markets and cooperatives to enable more Zambians to secure sustainable livelihoods.
And CEEC Director General Muwe Mungule revealed that the loans will be accessible in all districts, ensuring no one is left behind.
“The key objective of this collaboration is to ensure that we provide affordable financial loans to all our people across all districts. We will also help merge homogeneous enterprises by achieving enterprise consolidation,” said Mungule.
Meanwhile, ABSA Bank Zambia chief executive officer Mizinga Melu reaffirmed the bank’s commitment to supporting the growth of SMEs.
Melu stated that the initiative is a transformative step in unlocking the potential of small businesses.
“This partnership aligns with our vision to drive inclusive growth across the country. We are here to support entrepreneurs with the resources they need to succeed,” she said.
By Catherine Pule
Kalemba, November 21, 2024
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