‘SMEs HAVEN’T BENEFITTED FROM EMPOWERMENT FUNDS’

THE Chamber of Commerce in North- Western Province says it is concerned with the amount allocated for empowerment for Small and Medium Entrepreneurs (SMEs) in the 2023 national budget.

Finance and National Planning Minister Situmbeko Musokotwane recently announced that Government has allocated K397 million in the 2023 national budget increasing from K350 million in 2022.

But the Chamber of Commerce has stated that it did not see any SMEs benefitting from the funds which fall under the Ministry of Small and Medium Enterprises.

Its president, Mr Mukumbi Kafuta said SMEs in the region have serious challenges in accessing finances for their projects.

Mr Kafuta disclosed that over 90 percent of businesses in the country are SMEs and that if the government is to actualise the vision of having a private sector-led economy, deliberate policies giving meaningful support to SMEs must be implemented.

He has however commended the government for giving tax amnesty to enable SMEs and businesses in general to pay their tax principal amounts owed and be able to be pardoned on interest and penalties.

“And it is our hope that this amnesty can be extended to NAPSA as well as other statutory bodies,” said Mr Kafuta.

He has also commended the government for increasing the allocation of funds towards dismantling of domestic arrears from K3.1 billion to over K6.8 billion.

Mr Kafuta said the move will stimulate cash flow in the economy and create hope to local suppliers for them to sustain their businesses.