Minister of Small and Medium Enterprises Development Elias Mubanga has called for increased business collaboration between Zambia and China.
Mr Mubanga hinted that government was desirous to see more collaboration in the field of small and medium-sized enterprises.
Speaking on the margins of the China -Zambia High Quality Development forum, Mr Mubanga urged the Chinese business community to consider setting up a micro small medium development fund in Zambia.
He said the establishment of the fund will assist SME access affordable financing.
The Minister complained that the high cost of borrowing has posed a huge challenge to the SME sector.
Mr Mubanga however indicated that Zambian SME are capable of running big businesses if only affordable financing is made available to them.
“We have SMEs who are credible, our SME are able to run businesses but they lack capital due to high cost of borrowing.”
He said government would like to partner with Chinese firms that can provide affordable financing for SME.
Mr Mubanga reiterated that Zambian SMEs have the potential to contribute to the country’s economic growth if supported with low priced financing.
He bemoaned the high cost of borrowing which has negatively affected SMEs from growing their businesses.
Mr Mubanga expressed optimism that with cheap capital Zambians SMEs will thrive and contribute to job creation.
And Mr Mubanga has also implored their business community in China to assist Zambian SMEs produce quality goods that meet international standards.
He explained that technology transfer is cardinal if Zambian SMEs are to compete at the international level.
Meanwhil, Zambia Association of Manufacturers (ZAM) President Ashu Sagar has implored Chinese investors to take advantage of the prevailing peace and stability by investing in the country.
Mr Sagar said Chinese companies that choose to invest in Zambia stand to benefit from enhanced access to the market as Zambia is a land linked country.
He added that Zambia is endowed with numerous resources which require harnessing thereby offering investment opportunities in the manufacturing sector.
Mr Sagar encouraged the Chinese business community to develop business plans that encamps the inclusion of local SMEs.
He said if big companies work together with SMEs it will greatly assist in the growth of the SME sector.
Speaking earlier CAMCO Equipment Zambia Limited Chairman Li Tie says the Zambian Agriculture sector offers many opportunities for investors who want to venture in agriculture production.
Mr Tie said investors can lease agriculture equipment to SME in the agriculture sector.
He stressed that the use of mechanisation is critical in enhancing agriculture productivity among the farmers.
Mr Tie said small scale farmers will only be able to produce more if they have access to equipment which is readily available in China.
