A local shoe maker can not hire more employees to expand his business because banks have not made it easy for him to access funds. For many Zambian Small and Medium Enterprises –SMEs- interest rates ranging from 25% to 30% on loans by banks are scaring them to borrow money for expansion.
A Zambian Shoe maker has called on the Bank of Zambia –BOZ- to regulate banks so as to enhance access to funds by Small and Medium Enterprises –SMEs-. Kingsley Mwewa who operates his workshop in the Zambian Capital, Lusaka says many local banks do not have a provision for SMEs to borrow money. He says banks’ requirements for one to get a loan are too harsh for businessmen like him. “I have tried to get a loan from the bank but I can not afford the collateral which they are asking for,” says Mwewa.
Mr. Mwewa’s story is like that of many business people in the country. Their operations are going through stagnation because of what they term being sidelined by giants in the financial sector. Meanwhile Bankers Association of Zambia –BAZ- says its members have attached stringent measures toward loans because many SMEs have defaulted in the past. Association Vice Chairperson Mizinga Melu says the core of banks is to make a profit hence defaulters force institutions out of business. “ Statutory measures by government have greatly affected our rates hence many banks still find it difficult to reduce their rates compared to other countries in the region,” she says.
Could Islamic banking aid SMEs?
The Central Bank says the country lacks competition in the banking sector to force the rates downwards. BOZ Governor Caleb Fundanga further adds recovering of loans from borrowers who fail to pay back through the Credit Reference Bureau will help in lowering interest rates.
“The introduction of Islamic Banking which does not provide for borrowers to pay interest on loans would work well in Zambia. However the Bank of Zambia can only facilitate for this if an interested firm requests for its registration,” Dr. Fundanga says.
And Private Sector Development Association –PSDA- President Yosouf Dodia says high interest rates are retrogressive on economic development. He says the SMEs are the economic drivers of Zambia hence need to be considered in access to finance. “More than 80% of the employed population in Zambia is in the informal sector which is being run by SMEs.”
Brian Mwale
Feb 26, 2010
HIGH INTEREST RATES DENY EXPANSION OF SMEs
Kingsley Mwewa is a shoe maker who has been in this business for over twelve years. He operates his business in a small room down town of the capital of Zambia -Lusaka. Kingsley and his extended family of twelve have entirely depended on this business for over a decade. But due to the high interest rates, this shoe maker has only been able to just get enough and some times not enough Kwachas for his family.
When we asked Kingsley if he had ever tried to get a loan, he replied with a twisted facial expression “yes I have ever, but the percentage is too high”. This has not given his business and many other Small and Medium Enterprises in Zambia the opportunity to expand. Apparently the rate is at 21% in commercial banks and much higher in micro finance institutions.
The Zambia Association of Banks justify their high lending rates with a number of reasons. The Vice Chairperson Mizinga Melu said “the working conditions are not favorable for them to lower the rates. For example, electricity is not reliable we have to use generators which consume a lot of fuel which is expensive.”
Bad debts cause high Interest rates
The economy of Zambia is liberal meaning that Central Bank of Zambia can not regulate these banks. But it can not just sit and watch people being robbed, and this is why the governor Caleb Fundanga says, they introduce the credit reference bureau to curb loan defaulters. This will eventually cut down the number of bad debts and hence reducing the lending rates.
Economists observe that there is no high competition in the banking sector in Zambia and so this justifies the high lending rates. An economist Yusuf Dodia said that Zambia has only 17 financial institutions both commercial and Micro finance. So if only government licenses other banks, there will be high competition and defiantly banks would lower the interest rates.
This would do much for the SMEs like Kingsley Mwewa who will be able to expand his business and also realize his vision of a big shoe factory employing several Zambians and rewarding the nation a lot in terms of revenue.
Haddie Nabbale
When we asked Kingsley if he had ever tried to get a loan, he replied with a twisted facial expression “yes I have ever, but the percentage is too high”. This has not given his business and many other Small and Medium Enterprises in Zambia the opportunity to expand. Apparently the rate is at 21% in commercial banks and much higher in micro finance institutions.
The Zambia Association of Banks justify their high lending rates with a number of reasons. The Vice Chairperson Mizinga Melu said “the working conditions are not favorable for them to lower the rates. For example, electricity is not reliable we have to use generators which consume a lot of fuel which is expensive.”
Bad debts cause high Interest rates
The economy of Zambia is liberal meaning that Central Bank of Zambia can not regulate these banks. But it can not just sit and watch people being robbed, and this is why the governor Caleb Fundanga says, they introduce the credit reference bureau to curb loan defaulters. This will eventually cut down the number of bad debts and hence reducing the lending rates.
Economists observe that there is no high competition in the banking sector in Zambia and so this justifies the high lending rates. An economist Yusuf Dodia said that Zambia has only 17 financial institutions both commercial and Micro finance. So if only government licenses other banks, there will be high competition and defiantly banks would lower the interest rates.
This would do much for the SMEs like Kingsley Mwewa who will be able to expand his business and also realize his vision of a big shoe factory employing several Zambians and rewarding the nation a lot in terms of revenue.
Haddie Nabbale
ZAMBIA TO REVAMP TAX POLICY
Zambia loses sixty billion kwacha (12 million USD) per year in tax fraud and uncollected tax. Tax authorities say the policy will leave no stone unturned because it targets to affect all informal sector workers and will carry heavy punishment for evaders.
The Zambian tax law mandates all citizens with an income of 700.000 kwacha (140 USD) and above, to pay income tax. However most informal sector workers in the same threshold have been evading this tax, a scenario that has caused unfair competition among business community.
The sectors under review will include over 8000 wheel barrow pushers commonly referred to as ZAMCABS, casual laborers operating road side markets and mechanics and dealers in second hand cloths.
ZAMCAB operators in Soweto market say the move to force them pay tax is in the wrong direction adding that their income is far below the assumed value. The tax body is crafting new rules that will help punish offenders some of which will include up to 2 years in jail with heavy fines. The most difficult thing will be finding a means to gauge ones income and calculate how much one can pay.
who is likely to benefit.....
Lusaka city council authorities say despite the nation wide resistance to this policy, it will help achieve the target collection of close to 108 trillion kwacha (216 Billion USD) set by Zambia revenue authority (ZRA). The policy will also help to reduce to improve on foreign reserves that now stand at 2 billion dollars (10 trillion Kwacha) and maintain steady growth of the economy now estimated at 6.3 percent.
Independent economist Love Mtesa urges that this policy should be extended the estimated 5 million people active in Zambia’s working sector. Mtesa says it’s only fair that all those who earn contribute returns to the government however small the amount.
Zambia has an estimated 13 million people with a 200 USD per capita income. Their revenue collections are able to fund only up to 40 percent of it’s budget.
Joseph Basoga
The Zambian tax law mandates all citizens with an income of 700.000 kwacha (140 USD) and above, to pay income tax. However most informal sector workers in the same threshold have been evading this tax, a scenario that has caused unfair competition among business community.
The sectors under review will include over 8000 wheel barrow pushers commonly referred to as ZAMCABS, casual laborers operating road side markets and mechanics and dealers in second hand cloths.
ZAMCAB operators in Soweto market say the move to force them pay tax is in the wrong direction adding that their income is far below the assumed value. The tax body is crafting new rules that will help punish offenders some of which will include up to 2 years in jail with heavy fines. The most difficult thing will be finding a means to gauge ones income and calculate how much one can pay.
who is likely to benefit.....
Lusaka city council authorities say despite the nation wide resistance to this policy, it will help achieve the target collection of close to 108 trillion kwacha (216 Billion USD) set by Zambia revenue authority (ZRA). The policy will also help to reduce to improve on foreign reserves that now stand at 2 billion dollars (10 trillion Kwacha) and maintain steady growth of the economy now estimated at 6.3 percent.
Independent economist Love Mtesa urges that this policy should be extended the estimated 5 million people active in Zambia’s working sector. Mtesa says it’s only fair that all those who earn contribute returns to the government however small the amount.
Zambia has an estimated 13 million people with a 200 USD per capita income. Their revenue collections are able to fund only up to 40 percent of it’s budget.
Joseph Basoga
Feb 25, 2010
ZAMBIAN SMEs CALL FOR EASED ACESS TO FINANCE
A cross section of society in Zambia recentry complained that the Citizens Economic Empowerment Commission (CEEC) does not fulfill its mandate of disbursing funds to the Zambian people who seek loans to empower themselves. But what are the effects on the Small and Medium Scale entrepreneurs on the ground?
Small and Medium Scale entrepreneurs in Zambia have asked the government to make it easeir for them to access funds so that they can help in the development of the nation. Speaking in separate interviews in Lusaka’s Libala Township, the SMEs urged the government to ease the conditions so that many SMEs could have the opportunity to expand their businesses through the help of the CEEC.
Arthur Chembo who runs Arthur’s Blocks - a block making business along Chilumbulu road appealed to the government to reduce the requirements for one to qualify for a loan or financial assistance from CEEC. He said doing so will help many people who want to contribute to the nations economic growth come on board as compared to only people who have the money dominate and make themselves richer.
Chembo noted that once the government makes it easy for common people to access funds from CEEC, the crime rate in the country would reduce as many will have what to do as compared to the current situation on the ground. And a block maker Stephen Lungu from Chembo’s business entity said if the government could ease the cost of doing business in the country it would give him a chance to also start his business and become an employer.
Government should decentralize CEEC
Chembo has created employment to six people who make building blocks for sale to individuals or companies that are building. One block is going at K3, 500 (about $0.8 US) and he sales about 150 t0 200 building blocks to different clients with a daily earning of about K700, 000 ($ 155) if all goes well.
Another SME in the same area Kennedy Mambwe suggested that if the CEEC would be decentralized through out the country it would help more as compared to the centralization of the organization only in Lusaka.
What is CEEC all about?
Created under the current Zambian Constitution, the CEEC is a quasi government organization aimed at helping individuals and SMEs in the country acquire loans to start and expand businesses with the aim of empowering them. The CEEC is in Lusaka and all those who want assistance from the organization who are out of Lusaka have to travel to Lusaka to obtain the application forms and other necessary information. Recentry some people have complained of not having access to funds form the CEEC due to the conditions given to them to access the funds. Others say the centralization of the organization has denied many from having access to the funds. But CEEC Chairperson Mable Mungomba denied the allegations leveled against her organization as she said the organization was transparent.
Arthur Davies Sikopo
Small and Medium Scale entrepreneurs in Zambia have asked the government to make it easeir for them to access funds so that they can help in the development of the nation. Speaking in separate interviews in Lusaka’s Libala Township, the SMEs urged the government to ease the conditions so that many SMEs could have the opportunity to expand their businesses through the help of the CEEC.
Arthur Chembo who runs Arthur’s Blocks - a block making business along Chilumbulu road appealed to the government to reduce the requirements for one to qualify for a loan or financial assistance from CEEC. He said doing so will help many people who want to contribute to the nations economic growth come on board as compared to only people who have the money dominate and make themselves richer.
Chembo noted that once the government makes it easy for common people to access funds from CEEC, the crime rate in the country would reduce as many will have what to do as compared to the current situation on the ground. And a block maker Stephen Lungu from Chembo’s business entity said if the government could ease the cost of doing business in the country it would give him a chance to also start his business and become an employer.
Government should decentralize CEEC
Chembo has created employment to six people who make building blocks for sale to individuals or companies that are building. One block is going at K3, 500 (about $0.8 US) and he sales about 150 t0 200 building blocks to different clients with a daily earning of about K700, 000 ($ 155) if all goes well.
Another SME in the same area Kennedy Mambwe suggested that if the CEEC would be decentralized through out the country it would help more as compared to the centralization of the organization only in Lusaka.
What is CEEC all about?
Created under the current Zambian Constitution, the CEEC is a quasi government organization aimed at helping individuals and SMEs in the country acquire loans to start and expand businesses with the aim of empowering them. The CEEC is in Lusaka and all those who want assistance from the organization who are out of Lusaka have to travel to Lusaka to obtain the application forms and other necessary information. Recentry some people have complained of not having access to funds form the CEEC due to the conditions given to them to access the funds. Others say the centralization of the organization has denied many from having access to the funds. But CEEC Chairperson Mable Mungomba denied the allegations leveled against her organization as she said the organization was transparent.
Arthur Davies Sikopo
CONSTRUCTION BOOM IN LUSAKA IS FOR REAL
The city of Lusaka is glittering with newly constructed golden buildings that keeps one looking without even blinking the eyes. The city looks just like fairyland, indeed, to many people this is not just a dream but a reality.
There is a construction boom for real throughout Lusaka, Zambia. This has caused the number of construction companies to grow compared to the past years. The growth in the construction industry has created productive employment for many Zambians, both skilled and unskilled.
Mr. Bwalya Mukvka , a local resident of Lusaka city, makes and sells blocks. He is a thirty-year old man, married and with a family of five kids. He was jobless for the past the past five years, but the boom in the construction industry has generated productive employment and livelihood for him. He can now take care of his family affairs such as education, medicare and feeding. He earns Five Thousand Kwacha (K 5,000) per month; and this to him is sufficient to take care of him and his family's basic needs.
According to the Minister of Labour, Mr. Kelvin Chusule, the boom in the construction industry has provided a driving force in the eradication of poverty. There is now widespread employment and entrepreneurial opportunities for many Zambians engaged in construction.
TOO MUCH GOVERNMENT BUREAUCRACY
Mr. Nondo Kapuza, the company owner for Nondo Blockmaking Factory, said that the government policies related to the construction companies had made it easier for company owners to establish and operate in suitable environment. Now they can employ many workers, even though there are some challenges such as lack of funds, too much government bureaucracy to name but a few which they faced.
According to the Permanent Secretary in the Ministry of Labour,Mr. Levy Mwanza, government policies and plans have helped many construction companies to modernize and streamline their companies. Now they employ more skilled and unskilled workers. Currently, about 30% of the Zambian population are employed in the construction industry.
By Musa Conteh.
There is a construction boom for real throughout Lusaka, Zambia. This has caused the number of construction companies to grow compared to the past years. The growth in the construction industry has created productive employment for many Zambians, both skilled and unskilled.
Mr. Bwalya Mukvka , a local resident of Lusaka city, makes and sells blocks. He is a thirty-year old man, married and with a family of five kids. He was jobless for the past the past five years, but the boom in the construction industry has generated productive employment and livelihood for him. He can now take care of his family affairs such as education, medicare and feeding. He earns Five Thousand Kwacha (K 5,000) per month; and this to him is sufficient to take care of him and his family's basic needs.
According to the Minister of Labour, Mr. Kelvin Chusule, the boom in the construction industry has provided a driving force in the eradication of poverty. There is now widespread employment and entrepreneurial opportunities for many Zambians engaged in construction.
TOO MUCH GOVERNMENT BUREAUCRACY
Mr. Nondo Kapuza, the company owner for Nondo Blockmaking Factory, said that the government policies related to the construction companies had made it easier for company owners to establish and operate in suitable environment. Now they can employ many workers, even though there are some challenges such as lack of funds, too much government bureaucracy to name but a few which they faced.
According to the Permanent Secretary in the Ministry of Labour,Mr. Levy Mwanza, government policies and plans have helped many construction companies to modernize and streamline their companies. Now they employ more skilled and unskilled workers. Currently, about 30% of the Zambian population are employed in the construction industry.
By Musa Conteh.
UNEMPLYOMENT INCREASE IN ZAMBIA DUE TO LACK OF ENOUGH SKILLED.
ALTHOUGH THERE IS CONSTRUCTION GOING ON AT LUSAKA ZAMBIA WHICH MADE SOME OF THE ZAMBIANS TO GET JOBS, STILL PEOPLE CANNOT EARN ENOUGH MONEY TO COVER THE COST OF LIVING ESPECIALY WITH THE FAMILY DUE TO LACK OF ENOUGH SKILLS.
ABEL IS A THE BLOCK MAKER WHO IS LIVING AT LUSAKA ZAMBIA. HE HAS BEEN AFFECTED WITH THE SITUATION. HE MAKES THE BLOCKS FOR ABOUT A YEAR NOW, AND THEY ARE ABOUT TWELVE PEOPLE IN ONE PLACE WHO MAKE BLOCKS. THEY CAN MAKE MORE THAN ONE THOUSAND BLOCKS PER DAY AND SELL THREE THOUSAND PER BLOCK. ALL THE MONEY GOES TO THE OWNER OF THE PLACE AND THEY TAKE VERY LITTLE WITH THEM AT HOME.
HE SAID THAT HE MEETS A LOT OF CHALLENGES LIKE WORKING LONG HOURS,HIGH PRICE OF MATERIALS BUT HE RATHER IS WORKING THERE LONG HOURS THAN STAYING HOME, LIKE HOW HE USED TO DO BEFORE AND THAT SMALL MONEY WHICH HE GETS HE CAN TAKE CARE OF HIS FAMILY ALTHOUGH IS NOT ENOUGH. HE ADDED THAT HE WOULD LIKE TO GET MORE EXPERIENCE AND OPEN HIS OWN COMPANY BUT THE PROBLEM IS THAT THEY DONT GET ENOUGH SUPPORT FROM THE GOVERNMENT.
'PAID ACCORDING TO EDUCATION'
THE OWNER OF THE PLACE MR.MAXI NYIRENDA SAID HE TRIED TO GIVE THE JOB TO THE YOUTH WHO STAYED FOR A WHILE WITHOUT JOB,BUT HE MEETS A LOT OF CHALLENGE LIKE GETTING UNSKILLED PEOPLE AND ALSO SUPPORT FROM THE GOVERNMENT TOO.HE ADDED THAT HE PAID THEM ACCORDING TO THEIR EDUACTION EXPERIECENCES .
ACCORDING TO THE PERMANENTY SECRETARY FROM THE MINISTRY OF LABOUR ARTHUR CHOOBE,THE CONSTRUCTION INDUSTRY HAS EXPAND NOW COMPARE WITH BEFORE WHICH HELPS TO INCREASE THE NUMBER OF EMPLOYMENT AT FORMER SECTORS.
HE ADDED THAT GOVERNMENT HAS CREATE THE NEW STRATEGY OF HELPING YOUTH ESPECIALLY EDUCATING THEM THE ENTEPRENEWSHIP AND ALSO HELPING THEM GETTING BETTER JOBS TO HELP IT REDUCE THE POVERTY IN COUNTRY..
REHEMA SALIM AMRI
ABEL IS A THE BLOCK MAKER WHO IS LIVING AT LUSAKA ZAMBIA. HE HAS BEEN AFFECTED WITH THE SITUATION. HE MAKES THE BLOCKS FOR ABOUT A YEAR NOW, AND THEY ARE ABOUT TWELVE PEOPLE IN ONE PLACE WHO MAKE BLOCKS. THEY CAN MAKE MORE THAN ONE THOUSAND BLOCKS PER DAY AND SELL THREE THOUSAND PER BLOCK. ALL THE MONEY GOES TO THE OWNER OF THE PLACE AND THEY TAKE VERY LITTLE WITH THEM AT HOME.
HE SAID THAT HE MEETS A LOT OF CHALLENGES LIKE WORKING LONG HOURS,HIGH PRICE OF MATERIALS BUT HE RATHER IS WORKING THERE LONG HOURS THAN STAYING HOME, LIKE HOW HE USED TO DO BEFORE AND THAT SMALL MONEY WHICH HE GETS HE CAN TAKE CARE OF HIS FAMILY ALTHOUGH IS NOT ENOUGH. HE ADDED THAT HE WOULD LIKE TO GET MORE EXPERIENCE AND OPEN HIS OWN COMPANY BUT THE PROBLEM IS THAT THEY DONT GET ENOUGH SUPPORT FROM THE GOVERNMENT.
'PAID ACCORDING TO EDUCATION'
THE OWNER OF THE PLACE MR.MAXI NYIRENDA SAID HE TRIED TO GIVE THE JOB TO THE YOUTH WHO STAYED FOR A WHILE WITHOUT JOB,BUT HE MEETS A LOT OF CHALLENGE LIKE GETTING UNSKILLED PEOPLE AND ALSO SUPPORT FROM THE GOVERNMENT TOO.HE ADDED THAT HE PAID THEM ACCORDING TO THEIR EDUACTION EXPERIECENCES .
ACCORDING TO THE PERMANENTY SECRETARY FROM THE MINISTRY OF LABOUR ARTHUR CHOOBE,THE CONSTRUCTION INDUSTRY HAS EXPAND NOW COMPARE WITH BEFORE WHICH HELPS TO INCREASE THE NUMBER OF EMPLOYMENT AT FORMER SECTORS.
HE ADDED THAT GOVERNMENT HAS CREATE THE NEW STRATEGY OF HELPING YOUTH ESPECIALLY EDUCATING THEM THE ENTEPRENEWSHIP AND ALSO HELPING THEM GETTING BETTER JOBS TO HELP IT REDUCE THE POVERTY IN COUNTRY..
REHEMA SALIM AMRI
zambia government looses millions in uncollected tax revenue
The number of people in the informal employment in Zambia is growing day by day but the tax revenue base is not. John Masumbuko has been operating his business outside the city market for about 10 years but has never been asked to pay tax. He is not alone!
John Masumbuko leaves his home at the outskirts of the city to Soweto market where he has been earning a living for the last 10 years operating Zamcom wheelbarrow taxis. The taxis ferry goods for dealers to and from the market on a daily basis. On a good day Masumbuko makes about 40,000 kwachas and in a month about 750,000 kwachas.
He is among many joining the informal sector such as quarry miners, tax operators and open market vendors making tax free income.
Government policy faulted
According to the government policy that is currently in place anyone earning an income of above 700,000 is subjected to taxation. This is the money that is later used to develop government infrastructure such as carpeting of roads and establishing health facilities and schools. This however does not happen as there are no implementing systems in place to ensure taxes are paid. The city council Public relations manager Chanda Kakusa Makanta agrees that there are loopholes that need to be corrected.
An independent economist Mary Okudoi criticized the government policy system. She says the systems are not effective in tax collection. According to Okudoi the government looses about 60 billion Kwachas or about 900 000 dollars in uncollected tax which could be useful in development projects in the country. The government borrows heavily on donor funding and therefore increasing its external debt.
John Masumbuko, the Zamcom operator, says: ' We do not pay taxes... we do not benefit in anyway from the government '. He urged the government to assist them and create more job opportunities for them. He says he has no problem paying taxes if the government takes a bold step to improve the informal sector working conditions.
The World Bank in 2000 urged African governments to reduce the number of state employees where the governments was spending a big chunk of revenues on salaries. Those who were laid off mainly joined the informal sector where taxation policies are hardly implemented making it easy for them to evade government levies in the form of taxes.
Jane Kariuki
John Masumbuko leaves his home at the outskirts of the city to Soweto market where he has been earning a living for the last 10 years operating Zamcom wheelbarrow taxis. The taxis ferry goods for dealers to and from the market on a daily basis. On a good day Masumbuko makes about 40,000 kwachas and in a month about 750,000 kwachas.
He is among many joining the informal sector such as quarry miners, tax operators and open market vendors making tax free income.
Government policy faulted
According to the government policy that is currently in place anyone earning an income of above 700,000 is subjected to taxation. This is the money that is later used to develop government infrastructure such as carpeting of roads and establishing health facilities and schools. This however does not happen as there are no implementing systems in place to ensure taxes are paid. The city council Public relations manager Chanda Kakusa Makanta agrees that there are loopholes that need to be corrected.
An independent economist Mary Okudoi criticized the government policy system. She says the systems are not effective in tax collection. According to Okudoi the government looses about 60 billion Kwachas or about 900 000 dollars in uncollected tax which could be useful in development projects in the country. The government borrows heavily on donor funding and therefore increasing its external debt.
John Masumbuko, the Zamcom operator, says: ' We do not pay taxes... we do not benefit in anyway from the government '. He urged the government to assist them and create more job opportunities for them. He says he has no problem paying taxes if the government takes a bold step to improve the informal sector working conditions.
The World Bank in 2000 urged African governments to reduce the number of state employees where the governments was spending a big chunk of revenues on salaries. Those who were laid off mainly joined the informal sector where taxation policies are hardly implemented making it easy for them to evade government levies in the form of taxes.
Jane Kariuki
STREET VENDING IN LUSAKA
Time and again the zambian government has tried to remove street venders from the streets to the markets but they keep coming back.The general question is has the government done enough to help these venders formalise their businesses.
Lusaka city council (LCC) public relations manager Chanda Makanta says the biggest challenge is that these traders feel they make more profits when they sell from the streets because they dont pay any levy to the local authority,and they try to runaway from all these costs by coming on the streets.Ms Makanta says the council will not condone this and they will not allow anyone to continue selling on the streets and the council has also started dealing with the peolple who buy from these venders by fining them.she says the government has built enough markets for them to trade from.
VEWS OF THE VENDER
Contrary to what lcc is saying,the venders feel the procedure for aquiring stands at the market has not been made easy for the ordinary citizens to acqire.The venders feel there is a lot of corruption taking place in stand allocation.They say management at these markets has given out these stands to people with money ,who later rent out the stands at high prices which these venders can not afford .
WAY FORWARD
The lusaka district business association chairperson Ms Mercy Phiri feels the reason why these venders keep coming back on the streets is becous they want to reach out to the customers who find it very difficult to go to the markets ,which she says are located very far away from the city center.she also says the markets are not enough to accomodate all the people doing business hence the high charges beeing charged on the few stands available.she has called on the goverment to build more markets and legalise a part of the city center for the venders at peak times.
Caroline Michelo
Lusaka city council (LCC) public relations manager Chanda Makanta says the biggest challenge is that these traders feel they make more profits when they sell from the streets because they dont pay any levy to the local authority,and they try to runaway from all these costs by coming on the streets.Ms Makanta says the council will not condone this and they will not allow anyone to continue selling on the streets and the council has also started dealing with the peolple who buy from these venders by fining them.she says the government has built enough markets for them to trade from.
VEWS OF THE VENDER
Contrary to what lcc is saying,the venders feel the procedure for aquiring stands at the market has not been made easy for the ordinary citizens to acqire.The venders feel there is a lot of corruption taking place in stand allocation.They say management at these markets has given out these stands to people with money ,who later rent out the stands at high prices which these venders can not afford .
WAY FORWARD
The lusaka district business association chairperson Ms Mercy Phiri feels the reason why these venders keep coming back on the streets is becous they want to reach out to the customers who find it very difficult to go to the markets ,which she says are located very far away from the city center.she also says the markets are not enough to accomodate all the people doing business hence the high charges beeing charged on the few stands available.she has called on the goverment to build more markets and legalise a part of the city center for the venders at peak times.
Caroline Michelo
Feb 24, 2010
Zambia reviews costs and procedures of Doing Business
The World Bank ranked Zambia at the 90th position among 183 economies in the world where it is easy or difficult to do business. This has pushed the Zambian government to reform because it wants to improve its rankings.
It takes a company or individual who wants to construct a ware house or head office facility for their business in Zambia 17 procedures and 254 days almost an entire year to obtain a construction permit. The head of the country’s private contractors association said the process was too long for investors coming to the country and was making them go out of business. The Minister of Zambia’s Ministry of Works and Constructions said a new legislation has been drafted to reduce the procedures and time to get construction permit. The Works Minister said the current regulations are hurting to the economy and all would be done to have parliament approved the new draft regulations.
The annual World Doing Business Survey said it takes an entrepreneur an average of 18 days and six procedures to start a business in Zambia. It costs about 28.4per cent of gross national income to register business.
Government takes step
However, the brochure issued by the Patents and Companies registration office says an individual business must pay eighty thousand Kwacha (US20.00) and research fee of 10 thousand Kwacha. A corporate entity is to pay 105 thousand Kwacha initial registration fee. The brochure however did not state the number of days and the actual number of procedures one has to follow before registering a business.
However, Mrs. Bobo said government wants to reduce the procedures and cut down the cost of registering a business in Zambia. The reform effort involves both government and the private sector in all the nine steps associated with doing business in her country.
The Government of Zambia currently reviews the procedures and costs of doing business in the country. The head of the country’s registration company Mrs. Annesie Bobo said new measures to speed up registration are being put in place. Several brochures have been issued out for business people to follow the new procedures in registering. Mrs. Bobo believes it will make it easier for them to start a business.
Horatio Bobby Willie
It takes a company or individual who wants to construct a ware house or head office facility for their business in Zambia 17 procedures and 254 days almost an entire year to obtain a construction permit. The head of the country’s private contractors association said the process was too long for investors coming to the country and was making them go out of business. The Minister of Zambia’s Ministry of Works and Constructions said a new legislation has been drafted to reduce the procedures and time to get construction permit. The Works Minister said the current regulations are hurting to the economy and all would be done to have parliament approved the new draft regulations.
The annual World Doing Business Survey said it takes an entrepreneur an average of 18 days and six procedures to start a business in Zambia. It costs about 28.4per cent of gross national income to register business.
Government takes step
However, the brochure issued by the Patents and Companies registration office says an individual business must pay eighty thousand Kwacha (US20.00) and research fee of 10 thousand Kwacha. A corporate entity is to pay 105 thousand Kwacha initial registration fee. The brochure however did not state the number of days and the actual number of procedures one has to follow before registering a business.
However, Mrs. Bobo said government wants to reduce the procedures and cut down the cost of registering a business in Zambia. The reform effort involves both government and the private sector in all the nine steps associated with doing business in her country.
The Government of Zambia currently reviews the procedures and costs of doing business in the country. The head of the country’s registration company Mrs. Annesie Bobo said new measures to speed up registration are being put in place. Several brochures have been issued out for business people to follow the new procedures in registering. Mrs. Bobo believes it will make it easier for them to start a business.
Horatio Bobby Willie
Africa’s One-Stop Border Post brings hope to small businesses
Southern Africa's first One-Stop Border Post, the Chirundu Post, between Zambia and Zimbabwe has raised hope for small businesses . They have been fighting for survival due long delays at the border.
The One-Stop Border Post constructed barely three months ago should reduce the delays of clearing customs and immigration and further promote regional economic growth.
Reduced transport cost to boost economy…
Chairman General for the Cross Borders Traders Association for Southern Africa Development Community SADC and Common Market for Eastern and Southern Africa COMESA, Bernard Sikunyongana says the One-Stop Border Post is working well for small businesses in the region.
“Upon operation the One-Stop Border Post was expected to reduce delays of about 30% to 50%” said Sikunyongana.
Cynthia Mukwasa
The One-Stop Border Post constructed barely three months ago should reduce the delays of clearing customs and immigration and further promote regional economic growth.
Reduced transport cost to boost economy…
Chairman General for the Cross Borders Traders Association for Southern Africa Development Community SADC and Common Market for Eastern and Southern Africa COMESA, Bernard Sikunyongana says the One-Stop Border Post is working well for small businesses in the region.
“Upon operation the One-Stop Border Post was expected to reduce delays of about 30% to 50%” said Sikunyongana.
Cynthia Mukwasa
The Railways System of Zambia plans to retrench over 170 Employees.
The workers have called on government to take measures that will ensure that they do not become part of the huge number of unemployed in the country.
Meanwhile, RCZ has assured the workers everything has been taken care of to ensure they get what is due to them.
RSZ Chief Executive Officer, Benjamin Even said that the retrenchment will represent 10 per cent of the company’s direct and indirect workforce.
Mr. Even said being mindful of the difficulties in finding employment, his management had agreed with the Railway Workers Union of Zambia-RWUZ- to first give the affected workers an option of voluntary separation which he says was under generous conditions.
AGREEMENT after long bargain
He said the RSZ management and RWUZ officials bargained for the agreement for the past two weeks.
RSZ has emphasised that it remains committed in investing in infrastructure and improving the company’s performance within and beyond the contractual obligations.
RSZ said the exercise will save as a strategy to reduce costs and prepare for the future.
Allan Mtonga
Meanwhile, RCZ has assured the workers everything has been taken care of to ensure they get what is due to them.
RSZ Chief Executive Officer, Benjamin Even said that the retrenchment will represent 10 per cent of the company’s direct and indirect workforce.
Mr. Even said being mindful of the difficulties in finding employment, his management had agreed with the Railway Workers Union of Zambia-RWUZ- to first give the affected workers an option of voluntary separation which he says was under generous conditions.
AGREEMENT after long bargain
He said the RSZ management and RWUZ officials bargained for the agreement for the past two weeks.
RSZ has emphasised that it remains committed in investing in infrastructure and improving the company’s performance within and beyond the contractual obligations.
RSZ said the exercise will save as a strategy to reduce costs and prepare for the future.
Allan Mtonga
CEE Fund "a raw deal", Zambian small scale traders say
The Zambia Small Scale Traders Association (ZSSTA) criticizes government’s initiative to release funds to empower people with little businesses. The business people can not access the funds due to unfriendly conditions attached.
Association president Misheck Banda says the Zambian government should consider relaxing conditions attached to the fund to enable the intended people benefit from the initiative. “we as an association feel the empowerment fund initiative is a failure as many small scale traders in the country are unable to access it”, Banda told this web. He observed that many traders were still finding it difficult to progress in their business because of ‘tough’ conditions put in place by the Citizens Economic Empowerment Commission (CEEC) the body tasked to administer the fund.
Banda said the demand for collateral usually beyond applicants reach by the commission for them to access the funds has rendered the funds inaccessible by many. The other difficulty is that government asks the applicants to write business proposals when some of them can't write due to illiteracy.
Just a political gimmick?
CEEF, a revolving fund, is a scheme established under the Citizen Economic Empowerment Act No 9 of 2006 of the laws of Zambia. The funds are aimed at providing financial capital to small scale businesses as a way of empowering the local people to set up sustainable businesses. It is believed that through this initiative, many Zambians would be encouraged to open up businesses to improve livelihood especially for the large population of the unemployed citizens.
The funding initiative has a political pretense as many government officials argue that the funds which were released two years ago are so far benefiting the people of Zambia, but for Banda and many other citizens ;this is viewed as a political gimmick aimed at deceiving the electorate. “The government should not claim to be on the right path with these funds because the intended persons have not benefited from it”. This for me is pure politics”, added the ZSSTA leader.
Dennis Chanda Chisanga
Association president Misheck Banda says the Zambian government should consider relaxing conditions attached to the fund to enable the intended people benefit from the initiative. “we as an association feel the empowerment fund initiative is a failure as many small scale traders in the country are unable to access it”, Banda told this web. He observed that many traders were still finding it difficult to progress in their business because of ‘tough’ conditions put in place by the Citizens Economic Empowerment Commission (CEEC) the body tasked to administer the fund.
Banda said the demand for collateral usually beyond applicants reach by the commission for them to access the funds has rendered the funds inaccessible by many. The other difficulty is that government asks the applicants to write business proposals when some of them can't write due to illiteracy.
Just a political gimmick?
CEEF, a revolving fund, is a scheme established under the Citizen Economic Empowerment Act No 9 of 2006 of the laws of Zambia. The funds are aimed at providing financial capital to small scale businesses as a way of empowering the local people to set up sustainable businesses. It is believed that through this initiative, many Zambians would be encouraged to open up businesses to improve livelihood especially for the large population of the unemployed citizens.
The funding initiative has a political pretense as many government officials argue that the funds which were released two years ago are so far benefiting the people of Zambia, but for Banda and many other citizens ;this is viewed as a political gimmick aimed at deceiving the electorate. “The government should not claim to be on the right path with these funds because the intended persons have not benefited from it”. This for me is pure politics”, added the ZSSTA leader.
Dennis Chanda Chisanga
Feb 23, 2010
Banks open doors for loan access…
The bank of Zambia is encouraging competition in the banking sector.The bank has announced that it is negotiating with commercial banks to offer suitable loans to SME’s.
The bank of Zambia governor Caleb Fundanga said that Zambia has 18 licensed banks and with a few more applications waiting in line. He pointed out that it was important to encourage new banks to come into the market to bring about competition and subsequently good service delivery.
Loans and SME’s
The governor said, in a fast growing economy like Zambia’s it was important to support the SME’s which constitute about 70 % of the informal sector.He called on the banks to come up with products that will attract investment and which will support the growth of the informal sector.
Meanwhile, Zambia Chamber of Small and Medium Business Associations (ZCSMBA) Lusaka province publicity secretary Victoria Chirwa said that banks ask for too much collateral which hinders members of her organization to access loan for business growth. Ms.Chirwa called on banks to partner with the small scale business units and support the growth of the local manufacturing .
STEPHEN TAMBIRAI MDOMA
The bank of Zambia governor Caleb Fundanga said that Zambia has 18 licensed banks and with a few more applications waiting in line. He pointed out that it was important to encourage new banks to come into the market to bring about competition and subsequently good service delivery.
Loans and SME’s
The governor said, in a fast growing economy like Zambia’s it was important to support the SME’s which constitute about 70 % of the informal sector.He called on the banks to come up with products that will attract investment and which will support the growth of the informal sector.
Meanwhile, Zambia Chamber of Small and Medium Business Associations (ZCSMBA) Lusaka province publicity secretary Victoria Chirwa said that banks ask for too much collateral which hinders members of her organization to access loan for business growth. Ms.Chirwa called on banks to partner with the small scale business units and support the growth of the local manufacturing .
STEPHEN TAMBIRAI MDOMA
DEPRECIATION OF NIGERIAN CURRENCY THE NAIRA
TOO MUCH OF INFLATION IS AMONG THE CAUSES OF NAIRA
DEPRECIATION, WHICH AGAIN IS CAUSED BY DEBT FROM THE WORLD BANK. AND GOVER-
MENT HAS NOT PUT IN PLACE A PRICE REGULATING BOARD AND STILL
IMPORTS OIL FROM OVERSEAS.
BASICALLY,THERE ARE SO MANY MEASURES TO BE CONSID-
ERED,TO AVOID ALL THE ABOVE FACTORS. CERTAINLY IMPL-
THE SERVICES OF ECONOMIST ANALYST.
ALSO,GOVERNMENT HAS TO PUT MUCH RESOURCES INTO
PRIVATE SECTOR BECAUSE IS THE ENGINE GROWTH OF
ANY SOCIETY, AND AVOID CORRUPTION, EMPOWER AGRIC-
ULTURAL SECTOR,PROVIDE ENABLE ENVIRONMENT FOR
FOREIGN INVESTORS.
GOVERMENT NOT TACKLING POVERTY
HOWEVER, NIGERIA OIL SERVE AS THE MAJOR SOURCE OF
REVENUE BUT YET FOREIGN RESSEVE IS DEFICIT,AND ALSO
GOVERNMENT IS NOT REALLY TACKLING POVERTY BY PRO-
VIDING LOAN SMES AND SUPPORTING LOCAL INDUSTRIES
AND ENSURING PROMPT PAYMENT.
SIMILARLY,EDUCATION SECTOR HAS TO BE CONSIDERED TO HAVE LABOUR FORCE,AND LASTLY PROVIDE SECURITY FOR FOREIGN INVESTORS TO COME AND INVEST IN THE COUNTRY.
ALI AMINU FALAKI
DEPRECIATION, WHICH AGAIN IS CAUSED BY DEBT FROM THE WORLD BANK. AND GOVER-
MENT HAS NOT PUT IN PLACE A PRICE REGULATING BOARD AND STILL
IMPORTS OIL FROM OVERSEAS.
BASICALLY,THERE ARE SO MANY MEASURES TO BE CONSID-
ERED,TO AVOID ALL THE ABOVE FACTORS. CERTAINLY IMPL-
THE SERVICES OF ECONOMIST ANALYST.
ALSO,GOVERNMENT HAS TO PUT MUCH RESOURCES INTO
PRIVATE SECTOR BECAUSE IS THE ENGINE GROWTH OF
ANY SOCIETY, AND AVOID CORRUPTION, EMPOWER AGRIC-
ULTURAL SECTOR,PROVIDE ENABLE ENVIRONMENT FOR
FOREIGN INVESTORS.
GOVERMENT NOT TACKLING POVERTY
HOWEVER, NIGERIA OIL SERVE AS THE MAJOR SOURCE OF
REVENUE BUT YET FOREIGN RESSEVE IS DEFICIT,AND ALSO
GOVERNMENT IS NOT REALLY TACKLING POVERTY BY PRO-
VIDING LOAN SMES AND SUPPORTING LOCAL INDUSTRIES
AND ENSURING PROMPT PAYMENT.
SIMILARLY,EDUCATION SECTOR HAS TO BE CONSIDERED TO HAVE LABOUR FORCE,AND LASTLY PROVIDE SECURITY FOR FOREIGN INVESTORS TO COME AND INVEST IN THE COUNTRY.
ALI AMINU FALAKI
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