Legislation to support MSMEs coming – Gov’t

GOVERNMENT has announced the commencement of the process of facilitating the development of legislation to support the growth of the Micro, Small and Medium Enterprises (MSMEs) in Zambia.

The legislation’s key issue is to particularly address the unique needs and challenges MSMEs face, such as accessible financial products and services.

This is according to the Ministry of Small and Medium Enterprise Development, Permanent Secretary, Subeta Mutelo, at the Dissemination Workshop of the MSME Finance Survey Report recently in Lusaka.

“The Ministry has commenced the process of facilitating the development of legislation to support the growth and development of the micro, small and medium enterprises particularly by addressing the unique needs and challenges they face, such as accessible financial products and services.

“Through this legislation, the Ministry aims to provide a conducive environment for MSMEs to thrive and access the necessary financial support for their growth and development,” Ms Mutelo said.

On the report, Ms Mutelo said the dissemination of te survey report marked an important milestone in the journey towards supporting the growth and success of MSMEs in Zambia.

She noted that the survey provided Government with evidence-based recommendations that would guide its policies and interventions in the coming years.

“With regard to the recommendation for the Ministry to initiate the development of legislation specifically targeted at supporting MSMEs, I am pleased to inform you that the Ministry launched the Revised National micro, small and medium enterprise development policy to support MSMEs.

“The findings of the survey shed light on the key issues that need to be addressed in order to improve access to finance for MSMEs in Zambia. One of the main challenges identified is the need for more affordable and accessible financing options,” Ms Mutelo said.

She acknowledged that many MSMEs relied on their own funds or family and friends for start-up capital, while only a small percentage had been able to access formal loans from commercial banks or other financial institutions. This, she noted, called for a coordinated effort by both the public and private sectors to provide more accessible financial services and products tailored to the needs of MSMEs.