By Staff Writer
Livingstone Chamber of Commerce and Industry (LCCI) President Namakau Siyanga has expressed gratitude after learning of the rare action and gesture
exhibited by one of the players in the financial subsector in
particular Zanaco with respect to lowering the lending rates
to SMEs.
Ms Siyanga says Zanaco has undoubtedly rescued SMEs from high
cost of borrowing in the country and this is a welcome
move.
“This move by Zanaco resonates well with
Government's commitment and efforts in ensuring that the
financial subsector significantly moves towards inclusiveness
and at the same time providing affordable credit to the
private sector. Indisputably, inclusiveness and access to
affordable credit in our country had been for a long time a
rough tall tree to climb and as such these factors remained
active barriers to setting up businesses be it small or large
commercial enterprises,” she says.
She explains that failure to access
finance and high cost of capital finance has stifled the
performance and expansion of SMEs' contribution to the
productivity and growth of the economy in general.
“Therefore the business approach demonstrated by Zanaco
must be commended by all well meaning business persons
and should be imitated by other commercial banks for the
benefit of the economy of Zambia especially if our country is
to become more competitive against external market
players,” says Ms Siyanga.
Ms Siyanga commends Zanaco for taking the positive move.
“In our view this is a positive move and sends a genuine and
strong signal to the other commercial banks operating in
Zambia to do the same in order to stimulate access to credit
and thereby buttress investment expansion in our
economy especially among upstream category that is highly
characterized of the SMEs. Further, the move by Zanaco will
give end-effects to SMEs having to benefit even more
through increasing their business portfolios and also
enabling new entrants into business arena,” she explains.
She further anticipates that this action by the bank will have multiplier-effects or positive externalities such as job creation,
increased government revenue and positive contribute to
social wellbeing.
Ms Siyanga has since implored Bank of Zambia and Government at large to initiative a
platform for recognizing or awarding commercial banks that
undertaken actions that directly or indirectly respond to
Government pronouncements or call such as what Zanaco
has done.
“This is because what Zanaco has done certainly is
going to yield a positive impact on Zambia's credit rating
and performance of macroeconomic environment and also
portrays that the nature of investment climate is steadily
improving. In our case as private sector, we are delighted
that at least for once a commercial bank has responded to
one of the critical factors of production in anyones business
life which is financial capital and congratulate the bank. The
Bank by so doing has vividly demonstrated that it is a caring
and reliable friend to the SMEs and is ready to walk any
difficult business journey with the private sector. ln addition,
as Livingstone Chamber we shall remain committed to
collaborating with entities that appreciate our challenges
and realistically responds through appropriate remedies or
well packaged products without over burdening the private
sector. lt is for this reason that we urge our members that
intend to apply for credit following the bank's offer to
exercise honest, transparency and oblige to the agreed
terms and conditions. The Livingstone Chamber therefore
intend to engage the bank in order to develop a joint
sensitization programme for our members so that they can
be familiar with the application procedures and its
subsequent implications. This will be done in order to
prepare the mindset of the potential borrower and help
them understand the obligations. We will also rollout
training seminars on book keeping, basic accounting and
product development for our members in order for them to
remain viable and grow their businesses. To achieve this we
will continue engaging Government especially the Ministry of
Commerce, Trade and Industry and Zambia Development
Agency,” she said.
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