Comesa to launch $5m SMEs fund

The Common Market for Eastern and Southern Africa (Comesa) is in the process of launching a Small and Medium Enterprises (SMEs) fund amounting to $5 million.

Comesa secretary general Sindiso Ngwenya said the SMEs fund would be launched between October and early November, this year.

Speaking at a Comesa media breakfast meeting in Lusaka on October 9 2013, Ngwenya said 25 percent of the profits from the funds would be invested into capacity building through training of SMEs.

“I want to state here that we are in the process of launching Comesa SMEs funding. This fund will be launched by the end of this month or early next month.

“We are going to start with $5 million which is expected to be increased as we go on. Twenty-five percent of the profits from the funds will be invested back into capacity building of SMEs,” he said.

He said Comesa wanted the SMEs in the country to grow from the micro level into bigger companies so that they would be able to create jobs for ordinary Zambians.

He said SMEs should not stagnate, hence the need for the funding to assist them access finance without challenges.

Ngwenya said one of the challenges SMEs had been facing was lack of capacity building and access to finance.

He said Comesa realised that SMEs were given funds but that they were not supported in terms of accountability and making good business plans.

Ngwenya said that was the reason Comesa would be consolidating the Free Trade Area.

He also said that Comesa would be signing a Memorandum of Understanding with a Chinese firm so that they would be able to work together to establish some economic zones in the Comesa region.

Micro Small and Medium-Scale Enterprises account for 80 percent of Zambia’s economy and contribute to employment opportunities. —Tralac