THE announcement by the Acting President Guy Scott that presidential by elections will be held on January 20, 2014 has set the mood of serious campaigns by presidential candidates from various political parties.
Today I endeavour to look at the possible effects of these campaigns on the Small and Medium Enterprise (SMEs).
The campaign programmes entail more money in circulation for the next 47 days and consequently the stimulation of economic activities in the short run improving the wellbeing of some business owners who will be involved.
Economic activities during this period will involve printing of t-shirts, billboard, advertising, print and electronic advertising, movements involving motor vehicles, holding of political rallies to woo voters.
So far more than six candidates have shown interest in participating in next month’s elections and this entails parting away with several hundreds of Kwacha within this period from the presidential aspirants.
Presidential candidates will make sure that even that investment which has been sitting idle for a number of months or years in their care will be shaken and be converted into cash to be used for campaign projects.
In this particular period borrowing will not be ruled out and those borrowed funds will straight away be released in the circulation to be used for campaign for related activities.
A friend of mine who runs a small graphic designing business told me that the business records higher sales during this period because a lot of business comes in for campaign materials design and most of the people especially the campaign agents are actually excited during this period because they move with cash.
Even renowned musicians at this particular time are busy composing songs for their clients to ensure that the message of election campaign is disseminated in music form to would-be voters.
In this way self-employed musicians are able to make money and improve personal cash flow and apply it to their day-to-day personal needs.
Idle investment in the country held by presidential aspirants and their sympathisers such as money held in livestock like cattle will be released into the economy after they are sold for cash.
Even money that is held in accounts such as fixed deposits will be thrown into the circulation.
So would money donated from outside Zambia to support certain candidates!
In this way campaign materials will be made by engaging various SMEs to make them improve their cash flow in this short period away from their normal businesses.
Campaign managers will sponsor supporters on drinking-sprees and in this way, small businesses in selling alcoholic drinks will improve their cash flow in this period going above business revenue expectations.
Activities of hiring vehicles such as minibuses and vannetts to go around the country will increase affecting the business in the positive way for those involved in this kind of business.
Economically, the expenditure from the recipients of campaign money will also be on the upswing.
For example small businesses which will be involved in the printing of the campaign materials such as chitenges, t-shirts, caps, billboard advertising, advertising on print and electronic media, will benefit from increased cash flow that will be in circulation.
This will definitely create more opportunities for existing SMEs and potential ones.
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