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Ministry of Small and Medium Enterprise Permanent Secretary Ms Subeta Mutelo says the three-day benchmarking working visit to South Africa will go a long way in reshaping the growth of Small and Medium-sized Enterprises (SMEs) in Zambia.
Speaking in Pretoria today after the benchmarking exercise, which included an engagement with the Department of Trade, Industry, and Competition (DTIC) of South Africa, Mutelo says the success stories of locally-owned companies in South Africa provided valuable lessons on how best the Zambian Government can help its SME sector grow.
Mutelo says Zambia has made significant progress in producing some of the most innovative and successful entrepreneurs and that such engagements are vital for continued expansion by incorporating best practices prevailing in the region aimed at providing a conducive environment for doing business.
She says the benchmarking visit to South Africa followed the signing of a Memorandum of Understanding (MoU) between the Ministry of Small and Medium Enterprise Development and Tusumupule Impact Accelerator in October this year.
Mutelo says the MoU is for the implementation of the Support Effort Recognition Matrix (STERM) aimed at recognising the support provided to Micro, Small and Medium Enterprises (MSMEs) and cooperatives by both public and private stakeholders.
She says the benchmarking visit to South Africa was initiated because DTIC has been implementing similar initiatives and that the two countries have since agreed to share expertise and technical knowledge as well as exchange implementation initiatives to support SMEs.
Mutelo said SMEs are key to the growth of the country by helping young people grow their businesses, adding that President Hakainde Hichilema emphasises the need to promote small and medium enterprise, creating job opportunities, and establishing linkages.
Acting Zambia High Commissioner to South Africa, Ms Inonge Mwenya, says SMEs play a crucial role in the economic development of the country as they are significant contributors to employment through job creation for a large portion of the population, thereby reducing unemployment, particularly in rural and peri-urban areas.
Mwenya notes that while Zambia’s economy has historically been reliant on copper mining, the SMEs have significantly contributed to economic diversification by developing various sectors such as agriculture, manufacturing, trade, and services, which can reduce vulnerability to fluctuations in commodity prices.
This is contained in a statement issued by Tamara Nyirenda, the First Secretary Press and Public Relations at the Zambia High Commission in Pretoria, South Africa.
