A business consultancy company G.N Grant Business Consultants says getting capital from banks by entrepreneurs is a problem and that interest rates are too high for start-ups.
Company managing consultant Grandy Ntumbo also says the requirement for collateral is another challenge that entrepreneurs face when trying to access finances for their businesses.
He says the Financial sector needs to be user friendly and although the tax paying and registration processes have slightly improved, more needs to be done to improve Zambia’s business environment and enable it to grow.
Mr. Ntumbo was speaking in an interview with Money FM News in Lusaka.
Zambia is ranked 87 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings.
The rank of Zambia deteriorated to 87 in 2018 from 85 in 2017.
Ease of Doing Business in Zambia averaged 89.18 from 2008 until 2018, reaching an all time high of 99 in 2008 and a record low of 80 in 2010.