Obeta urges SMEs to explore alternative capital-raising methods outside traditional loans

Small and Medium Enterprises (SMEs) should explore alternative methods of raising capital, such as equity financing and bond issuance, rather than relying heavily on loans, UBA Zambia Chief Executive Officer, Chinedu Obeta, has advised.

Speaking at Leap Networks’ Scale Up a Business Network Event, Obeta emphasized the need for SMEs to move away from traditional loan reliance.

He stressed that while loans have been the default capital solution, they should be considered a last resort in today’s dynamic business environment.

“Many businesses believe that scaling up requires loans, but that’s not the only option. Loans should be the last resort,” Obeta said.

He highlighted various capital options, including equity capital, venture capital, and debt capital.

For example, businesses could sell shares through the Lusaka Securities Exchange to raise funds.

Obeta also reiterated UBA Zambia’s commitment to helping SMEs explore these alternatives and offering financial advice to support business growth.

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