By Angela Moonga
Lusaka businessman Victor Nyasulu has described the announced Small and Medium Enterprises (MSMEs) and Cooperatives INDABA as an “early Christmas gift” to the people of Zambia.
In a statement to Daily Revelation yesterday, Nyasulu stated that the announced Indaba by the Ministry of Small and Medium Enterprises was welcome as the most important thing to get the MSMEs in the country going was to transfer the “red carpet” treatment normally given to foreign businesses (FDIs representatives) to Zambian MSMEs or local investors.
“We are all agreed worldwide that any government that takes care of its MSMEs is the one that is really interested in the economic wellbeing of its people. That assertion is based on the fact that in Zambia, like elsewhere, the MSME sector is the biggest employer even when compared to the country’s ‘most pampered’ mining sector!” Nyasulu stated. “Whenever there is a discussion in Zambia about why the masses do not benefit fully from the mining sector, foreign ownership of major mines (leaving profits/sales to be repatriated out of the country), informal mining with its attendant risks, Inadequate local skills and financial capacity rank highly. To recap and summarise the select limiting factors above:
“Foreign Ownership and Profit Repatriation: Many large-scale mining operations are owned by foreign companies, meaning that a significant portion of profits (and in some unfortunate circumstances even turnover is banked off shore!) leaves Zambia. Lack of Local Skills and Financial Capacity: Zambian actors within the mining value chain lack the necessary skills and financial resources to engage in more lucrative mining and downstream projects. Informal Mining and High Unemployment:”
Nyasulu stated that a high rate of youth unemployment fuels the informal mining sector, where individuals, like the Jerabos, engage in dangerous work.
“With the above stated challenges in the mining sector example, Zambian MSMEs-centric or biased solutions could help unlock the desired improved MSMEs sector to the robust benefits of the Zambian people.Using the mining sector I propose three possible MSMEs/Zambian LDIs solutions: Aggressive Implementation of MSMEs biased Policy Amendments: the government must aggressively implement policy amendments to improve governance and beneficiation that is MSME friendly in the mining and other sectors of the Zambian economy, Formalization of Artisanal Mining must go beyond rhetoric! Formalization of artisanal mining is a really most welcome effort and must be implemented quickly and without fail so that the benefits of artisanal and small-scale mining (ASM) sector can be realised,” Nyasulu stated. “This support must be practical rather theoretical and rhetorical. While GRZ is keen to assist peasant farmers via FISP in agriculture for example, there doesn’t seem to be equal zeal in mining and/or other wealth creating sectors! It is high time GRZ embraced a more wealth creating than poverty mitigation approach! Here I am talking about a whole hearted assistance to MSMEs so that they can get Access to relevant Business Education, Property, Plant and Equipment-PPE, Financial Capital, and Markets. Mining Discoveries and Investments: Positive prospects for new mineral discoveries must deliberately be first “given” to Zambian MSMEs and and/or Joint Venture-JVs arrangements and then to FDIs not the current status quo!I commend government for this overdue indaba that is going to precede the first ever MSMEs legislation promised earlier this year (2025).”
He stated that he looked forward to this MSMEs Indaba because he believe that if something ‘right’ comes out of the INDABA, Zambia’s MSME sector stands to gain and then Zambians could benefit finally!
“May the coming INDABA not be another talk show like others in the past!” stated Nyasulu.
