United Party for National Development (UPND) president Hakainde Hichilema
says president Lungu's acknowledgment of the importance of increasing access to banking services for stimulating business activity and development was most welcome and on this UPND could not
agree more.
However, HH has alleged that president Lungu must recognise that Government’s actions have had a strongly negative impact on the ability of Zambian Small and Medium-Sized Enterprises (SMEs) to access these services and unlock the
benefits.
In a statement made available to WM Media, HH said SMEs should be considered the lifeblood of the economy and are critical in generating enough jobs to ensure strong growth that delivers benefits for the many and not just the few.
The opposition leader alleged that PF Government’s vast and continued domestic borrowing is crowding out local businesses by driving up interest rates for loans that are now reaching 40%.
Mr Hichilema explained that the people that would be contracting these loans are those looking to invest in and expand their businesses, creating jobs and opportunities for others.
He added that already industry has
warned Government, and sectors such as manufacturing have been clear that the hikes will make local firms more uncompetitive, whereas large international companies will be able to seek finance elsewhere.
HH has since called on Government to support local business at this challenging time by cutting red tape, cutting waste and re-establishing confidence in the economy.
“We must support our local businesses to grow and become competitive. This
is the best way to not only grow our economy, but to do so in a way that has a wide-reaching benefit,” he said.
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