Business and Finance

SMEs Bill for sector protection, growth

SMEs Bill for sector protection, growth

By Tiyese Monjeza:

Ministry of Trade and Industry Principal Secretary for Small and Medium Enterprises (SME) and Cooperatives Francis Zhuwao has said the newly developed Micro and Small Medium Enterprise Bill will help address challenges which affect players’ growth.

He further said the bill will address challenges SMEs face and ensure the SMEs are contributing to development of the country.

Last month, MPs unanimously passed the MSME Bill which seeks to provide for the regulation, promotion and development of MSMEs, associations, and business development services providers in Malawi.

The bill seeks to establish the Small and Medium Enterprises Development Corporation which will replace the Small and Medium Enterprises Development Institute (Smedi).

The bill defines a medium enterprise as a business whose amount of total investment, excluding land and buildings, is more than K200 million but does not exceed K250 million.

Speaking at the opening of the Zomba SMEs Fair and Farmers Market organised by Malawi Confederation of Chambers of Commerce and Industry (MCCCI) in conjunction with Zomba City Council, Zhuwao said the bill will help increase production capacity of SME.

“We believe the MSMEs Bill will help us to satisfy the domestic market where major supermarkets have quality locally supplied products and there is surplus which we can export. We believe it is possible to increase our exports if SME puts much focus on value addition so that our products compete on the global market,” Zhuwao said.

He further said the government, through the Reserve Bank of Malawi, is implementing the Financial Inclusion and Entrepreneurship Scaling project which seeks to empower SMEs to produce more and encourage value addition.

MCCCI Chief Executive Officer Daisy Kambalame said they intend to organise more regional SME fairs and farmers markets, to give SME and producers a chance to market and showcase their products to potential buyers.

“There are times when companies import products and goods which are locally available. We believe such a fair has potential to link buyers and investors and clinch business deals. This is the way to go if we are to achieve accelerated socio-economic growth,” Kambalame said.

Exhibitors called on the government to create an enabling environment for the players to thrive.

ZCC Mayor Christopher Jana called on financial institutions to be offering soft loans to investors if SME were to grow and help create employment for jobless citizens.