SMEs key to economic growth

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-The Securities and Exchange Commission (LUSE) says the future of Zambia’s economy lies in the growth of the Small  and medium entities as opposed to Multinational companies (MNCs).

LUSE Chief Executive Officer Wala  Chabala noted that almost 50 years after independence the largest businesses in the country were in the hands of foreigners despite citizens owning the political landscape.

Dr Chabala stated that Zambia’s economy was not just about the MNCs but also the small and medium entities because they held the key to enhancing the future of the country’s economy.

“The small and medium entities are the engine of economic development in any economy. These create employment and contribute to the Gross Domestic Product (GDP) of any economy”,  said Dr Chabala.

Dr Chabala was speaking during the Alternative Market Sensitization Pre-Launch workshop organized by the Securities and Exchange Commission in collaboration with the Lusaka Stock Exchange held at Fair Mount hotel in Livingstone yesterday.

The workshop was held under the theme: “Unlocking access to investment capital, nurturing small business growth”.

Dr Chabala added that the birth of future conglomerates should come from among Zambians and discouraged the trend of waiting for foreigners to drive the country’s economy.

He however noted that studies have shown that SMEs are struggling to perform their duties due to lack of funding or financial assistance.

Dr Chabala said it was for this reason that the workshop was trying to reach out to SMEs so that they could appreciate the use of raising funds on the capital markets.

Dr Chabala explained that company size did not matter as what was imperative for the company to succeed was the nature of the business.

He advised SMEs to go the Alternative Market route as it was an alternative window to people who could not have access to the market in terms of finances to raise money to solidify the capital of their businesses.