870 Million Kwacha SME Fund Ignorance Shocks Mubanga

Small and Medium Enterprises (SMEs) in Zambia have continued to miss out on vital government support, with revelations that many entrepreneurs are unaware of the recently launched 870 million Kwacha SME Fund.

Minister of Small and Medium Enterprise Development, Elias Mubanga, expressed shock on Tuesday afternoon when he discovered that a large number of Zambian SMEs were ignorant of the fund, which was launched to provide flexible loans in local currency.

“How is this possible? You mean no one of you knows about this 70 million US dollar fund?” Mr. Mubanga asked, as he addressed entrepreneurs during an engagement session.

The awareness meeting was spearheaded by social media influencer and entrepreneur Prudence Nakambala, popularly known as Mwizukanji, who brought together prominent business owners under her initiative to highlight the challenges SMEs face.

Concerns raised during the session included poor communication of government policies, exploitative loan conditions, high taxes, ZESCO power interruptions, and outdated methods of information dissemination. Entrepreneurs argued that many of these issues hinder SME growth and keep them in the dark about opportunities.

Mr. Mubanga assured participants that government was working on an SME Bill aimed at comprehensively addressing challenges in the sector. He further revealed that next month, government will host an SME Indaba at Mulungushi Conference Centre, bringing together small and medium enterprises from across the country to tackle these issues head-on.

Meanwhile, Growth Investment Partners Zambia (GIP) noted that the fund targets over 150 SMEs and is designed to reduce the burden of expensive loans by offering more flexible terms.

Mwizukanji emphasized the importance of using modern platforms and social media to bridge the information gap, urging government to adopt innovative methods to reach entrepreneurs across the country.

She said,If such vital information is not reaching the people it is meant for, then we risk having brilliant businesses collapse, not because of lack of potential, but because of ignorance.

The 870 million Kwacha SME Fund is expected to ease access to finance and stimulate growth for Zambia’s growing entrepreneurial sector.