MUTATI

By KENNEDY MUPESENI-
FORMER Commerce Trade and Industry Minister Felix Mutati has said the introduction of Statutory Instrument Number 55 has complicated regional trade for Small and Medium Enterprises (SMEs).
Speaking at a discussion forum organised by Consumer Unity Trust Society (CUTS) International Zambia, Mr Mutati said the introduction of SI 55 was creating a lot of bureaucracy and creating new barriers for trade especially for SMEs in the country.
“SI 55 is a challenge to SMEs, especially when exporting to countries like Democratic Republic of Congo, where there are no effective banking systems, which is creating a new barrier thereby losing its original purpose,” Mr Mutati said.
He said the role of the Government is to provide a conducive environment for businesses to grow unlike introducing policies that stifle their operations.
Mr Mutati said already, small enterprises face a lot of challenges such as access to medium and long term capital to boost their capacity.
The SI 55 was introduced to monitor the balance of payments and require that transactions involving US$20,000 be filled in Bank of Zambia papers and getting letters of credit from commercial banks.
He, however, urged SMEs in the country to work on the quality of products in order to access the regional market.
“Appearance is what sells than the actual products and they should target the local market first before venturing into regional and international markets,” he said.
Mr Mutati observed that SMEs in the country had a tendency of first wanting to target the international market before satisfying the local market.
He said COMESA was offering a lot of opportunities for SMEs but that those who did not have enough capacity should explore the local market first.
Mr Mutati also urged SMEs in the country to improve on packaging of their export products if they are to compete favourably in regional trade.