President Lungu last week commissioned the Indo-Zambia Bank in Lundazi and made some grandiose statements on the importance of the financial services. His acknowledgement of the importance of increasing access to banking services for stimulating business activity and development was most welcome and on this we could not agree more.
However, President Lungu must recognise that his 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. As we have said before, 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 PF Government’s vast and continued domestic borrowing is crowding out our local businesses by driving up interest rates for loans that are now reaching 40%. The people that would be contracting these loans are those looking to invest in and expand their businesses, creating jobs and opportunities for others. 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.
Again we call for 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.
Hakainde Hichilema
UPND President
Only true president HH