zambia weekly wrap - may 10 edition

More than 1,000 SMEs enter Nyamuka Zambia business competition

MORE than 1,000 Small Medium Enterprises (SMEs) have registered their business ideas in the Nyamuka-Zambia business plan competition. The ZANACO-sponsored Nyamuka Zambia is one of four components under the Private Enterprise Programme Zambia (PEPZ), funded by the United Kingdom's Department for International Development (DFID). (Read more)

Source: World Bank

As shown in the chart above, the biggest challenge for Small and Medium Enterprises (SMEs) is access to financing. So it shouldn’t be a surprise that more than 1,000 applicants are chasing after a K250,000 ($34,000) prize (as well as other supplementary prizes).

It cannot be mentioned enough that SMEs are the key to solving the youth unemployment problem. They need cheap credit and for many a combination of incubation and financing. The government has tried to finance SMEs through the CEEC and ‘Youth Development funds’ but for various reasons, it has not been very successful (high default rates). If they want real success then they should delegate the responsibility (and funds) to private companies who are specialized in this kind of activity and will take the time to understand an SMEs trading environment and cashflows. Otherwise taxpayer money will keep going down the drain.

A few years ago more than 20,000 applications were sent to the Ministry of Finance for just over 2,000 low level Accounting vacancies which were advertised. A couple of months ago, more than 2,000 people applied for 20 positions advertised at the National Pension Scheme Authority. This paints a picture of the kind of demand there is for employment in Zambia especially for the youth.

Blue Assurance Services Zambia sold to Regent Life Botswana Ltd

BLUE Financial Services yesterday announced the sale of Blue Assurance Services (Zambia) to Regent Life Botswana Limited to help the group divest from non-core investments. The company said that Blue Financial Services Zambia and Blue Employee Benefits Botswana had entered into the sale agreement that was subject of the approval of the Pensions and Insurance Authority of Zambia. The sale was part of the restructuring process announced by the firm last month.(Read more)

Zambia touted as one of the fasted growing African economies for millionaires behind Mozambique and Ivory Coast
Over the next 10 years, Mozambique is expected to be the fastest growing African market for individuals with a net worth of $1 million or more, followed by the Ivory Coast and Zambia, according to a press release on the Africa 2015 Wealth Report. Africa is the fastest growing market in the world for high net worth individuals, the report says. The report reviewed wealth in Africa, including luxury trends and wealth management trends in each country. (Read more)

Zambia validates updated trade policies with help from UNACTAD

UNCTAD has been supporting the government of Zambia to update its commercial and trade policy framework. On 9 to 10 April 2015, representatives from UNCTAD were among over 40 participants at a workshop in Lusaka that validated the latest outcome of this process, a study by UNCTAD. Major issues affecting Zambia's economy and trade, and possible policy responses, were discussed by participants of the workshop, which was chaired by Lillian Bwalya, Zambia's Director of Trade in the Ministry of Commerce, Trade and Industry.(Read more)

Post Newspaper reveals $192m GRZ loan from China which was not publicly disclosed

THE government is hiding a US$192 million loan it contracted from China to improve state security. According to Ministry of Finance sources, Alexander Chikwanda recommended that government contracts two loans; US$14 million to improve water and sanitation in Western Province, and over US$192 million to improve security wings in the country. (Read more)

Not a fan of the Post Newspaper but certainly appreciate them exposing this lack of transparency by the Government. Ultimately, that taxpayer is on the hook for that loan so it has to be public knowledge not matter what it is being used for.

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