Govt reaffirms commitment to supporting SMEs, as sector contributes 80% to Zambia’s GDP

In a strong show of support for Zambia’s Small and Medium Enterprises (SMEs), the government has pledged to foster a favorable business environment to help these enterprises grow and thrive.

This commitment was reiterated by the Ministry of Small and Medium Enterprises Development Permanent Secretary, Subeta Mutelo, during a press briefing organized by Texila University at their Lusaka campus on Saturday.

Speaking on behalf of Mutelo, the Ministry’s Director of SME Business Development and Grants, Kennedy Mumba, highlighted the critical role that SMEs played in driving Zambia’s economy.

Mutelo stated that the government was dedicated to providing the necessary resources and support to ensure the SME sector can flourish.

“Government will provide the necessary support to ensure the sector can thrive,” Mutelo stated.

She underscored the administration’s focus on growth initiatives tailored to the needs of entrepreneurs.

Mutelo outlined a series of supportive measures designed to address the challenges faced by SMEs in Zambia, including enhanced access to funding, skills training, mentorship programmes and a simplified regulatory framework aimed at reducing bureaucratic barriers.

These efforts are intended to encourage more people to start and sustain small businesses, contributing to job creation and economic development across the country.

Texila University Vice Chancellor, Ajay Poddar, reinforced the importance of the SME sector, noting that SMEs currently contributed around 80 percent of Zambia’s Gross Domestic Product (GDP).

“SMEs must be given the much-needed financial and technical support,” he stressed, acknowledging the significant role they play in sustaining the economy.

Poddar also noted that climate change and the country’s energy shortages had negatively impacted SME productivity, leading some businesses to close.

He called for additional support to help SMEs adapt to these challenges, suggesting that initiatives aimed at building resilience in the face of climate-related and energy issues would be essential for long-term growth.

Government’s renewed focus on SMEs is expected to pave the way for an expanded, resilient business landscape that can adapt to both current and future economic challenges, ultimately driving sustainable development across the nation.

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