SMEs encouraged to invest in capacity building to access more financing, achieve rapid growth

Stanbic Bank has encouraged Small to Medium Enterprises (SME) in Zambia to invest more in capacity-building to enable them access more financing for further growth.

Bank Head Enterprise Banking, Katongo Chilufya, noted the need for SMEs to invest in building capacity to enable further access to more financing.

She said this at the SME indaba in Lusaka last week during a panel discussion titled, “Opportunities for MSME and Cooperatives – Business Financing in 2024 – Government and Private Sector Perspective.”

“The recommendation we would give, as bank, is SMEs should invest in themselves, capacity-building yourselves, and by capacity-building, we mean being financially literate.

“By capacity-building, we are also talking about good recordkeeping for the business; it is very good practice for your business because it will tell you where you are coming from, where you are standing, and where you are going; it will show you if you are going in the right direction,” she said.

Chilufya said disseminating information in several languages was something the bank would take very critically as SMEs were the drivers of the economy from various parts of the country.

“So, we are going to work on how best we can deliver that financial literacy in the several languages in Zambia,” she concluded.

At the same indaba, President Hakainde Hichilema called for collaboration among market players to support SME in Zambia.

Hichilema expressed optimism that such collaborations with the private sector were key to support SMEs in the country.

He said this in a speech read on his behalf by the Small and Medium Enterprises Development Minister, Elias Mubanga.

“We need to change our strategies. Today, we are here to explore the transformative power of collaboration.
“We have a new SME policy, and in line with policy targets, we will see success in the SME sector. Collaboration with the private sector is key,” Hichilema said.

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