The Zambian government has launched the National Micro, Small and Medium Enterprises Development (MSME) policy designed to ensure that the sector grows into a major contributor to the country’s overall economic development
The MSME policy is aimed at creating a national vision and leadership for deliberate development. The policy will also facilitate formulation and implementation of relevant and effective sector legislation and regulatory framework.
International statistics indicate that the MSME sector plays an important role in the economic development of many countries. Zambia, like many developing economies has a large informal sector which could contribute effectively to national development if properly exploited.
The policy is meant to transform the large informal MSME sector into a formal and vibrant sector. The idea is that enterprises rated as micro, small or medium blossom into bigger entities.
In terms of access to finance, the 2011 budget has allocated ZMK76 billion towards empowerment programmes all targeted at sections of society that ordinarily are disadvantaged from accessing funds through financial institutions. These funds are for the youth, women and persons with disabilities.
To ensure that the MSME policy succeeds, the Government has formulated a financial support strategy through the Citizens Economic Empowerment Commission (CEEC). Individuals with viable business plans can submit their proposals for consideration and possible funding.
By Nawa Mutumweno
