SMALL MEDIUM ENTERPRISE DEVELOPMENT IS CARDINAL TO PAVE THE WAY FOR A PRIVATE SECTOR LED ECONOMIC-RECOVERY

Lusaka, 16th September 2021: The Zambia Tax Platform (ZTP) commends Government for establishing the Ministry of Small Medium Enterprises (SMEs) as enterprises will have a more direct share of the national budget. This Ministry will also assist in improving coordination and providing oversight to institutions such as Citizens Economic Empowerment Commission (CEEC). The Platform holds that Micro and Small Medium Enterprises (MSMEs) have an important part to play in not only the growth but also the modernization of the economy as their activities cut across many economic sectors. These include construction, manufacturing, professional services, agriculture, trade, and mining. In Zambia, (MSME’s) contribute approximately 88% of employment, account for about 97% of all businesses and generate significant domestic and export earnings (FSD Zambia and Zambia Invest 2017).  As such, SME development emerges as a key instrument in poverty reduction efforts. However, over the recent past, the business environment has not been supportive enough for the growth of MSMEs for several reasons.

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