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The government has called on financial institutions and development partners to continue prioritizing initiatives that uplift and empower Micro-Small and Medium Enterprises (MSMEs) in Zambia.
Ministry of Small Medium Enterprises Permanent Secretary Subeto Mutelo, made this appeal during the signing of a five-year financing agreement between Stanbic Bank Zambia and the United States African Development Foundation (USADF) at Pamodzi Hotel on Thursday.
Mutelo stated that by providing grant financing, financial institutions would be uplifting local businesses.
“The lack of access to affordable finance by the MSMEs is a challenge that the Ministry of Small and Medium Enterprise Development has grappled with since its formation,” she reiterated.
She emphasized that such support would unlock the MSMEs’ potential and create numerous job opportunities for the youth and marginalized in the country.
Mutelo also highlighted that internationally, MSMEs were recognized as key players in achieving specific Sustainable Development Goals, such as Goal 8—decent work and economic growth.
She said, “Our MSMEs must be nurtured through comprehensive solutions to mitigate the long-standing challenges with the aim of unlocking growth opportunities in a way that is inclusive, sustainable and scalable.”
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Mutelo called on financial institutions to consider intensifying pre-finance training, including mindset change, to better prepare MSMEs to receive the funds.
USADF Zambia Country Programme Coordinator, Guy Kahokola said, “The aim of the partnership was for enterprises to expand and be more profitable, provide market for the majority of smallholder farmers and create jobs in the communities where they operate.”
He added that this was a five-year, US$1 million partnership, with Stanbic Bank Zambia and USADF each contributing US$100,000 annually, and grants of up to US$25,000 to be awarded to successful enterprises.
Stanbic Bank Zambia Chief Executive, Mwindwa Siakalima, said the bank had focused on three key pillars to support MSME businesses in Zambia: providing access to finance, partnerships, and markets, along with financial literacy.
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