SMES Urged to Tap Growth

According to Mr Chiwala, SMEs can supply goods and services to mining companies, including transport and other services needed along the mining value chain.

He said 20 percent of mining procurement requirements had been reserved for Zambians, with the figure expected to rise to 40 percent by 2030.

“This is indeed a great opportunity for SMEs to exploit their potential in the mining value chain,” Mr Chiwala said.

He, however, said businesses must first put their houses in order by registering their companies and obtaining the required licences and documents.

Mr Chiwala said there was also money to be made by SMEs that stopped selling raw materials and started processing them into finished products.

He said, for example, farmers and traders dealing in soybeans could look at processing them instead of simply selling the raw crop.

“Why don’t you start making tomato paste, tomato sauces? Give it a name, a brand name and package it,” he said.

Mr Chiwala said this would allow local businesses to keep more value within Zambia while building products that could compete in the market.

He also encouraged SMEs to make use of Government financing programmes designed to help businesses grow.

He said initiatives offering loans and other forms of financing could help entrepreneurs expand, but warned that many businesses struggle to access such funds because they do not keep proper records or have sound business plans.

“Most of our SMEs are failing to secure funding because of poor business skills,” he said.

Mr Chiwala urged entrepreneurs to keep proper financial records, prepare business plans and learn how to manage their businesses before seeking loans.

He said invoice financing could also help businesses that had completed work or supplied goods but were still waiting to be paid.

Mr Chiwala further called on SMEs to take their businesses online and make better use of social media.

He said platforms such as Facebook, WhatsApp Business and TikTok could help small businesses reach customers who would otherwise never know about their products.

He said even a small business could now sell to a customer in Livingstone or another part of the country without having a physical shop there.

“The world has now evolved. The world has moved on,” Mr Chiwala said.

He also urged SMEs interested in Government contracts to ensure that their company documents were in order so they could take part in public procurement.

Mr Chiwala said SMEs should not wait for opportunities to come looking for them, but should prepare themselves and take advantage of the space being created by the country’s economic growth drive.