An Economist has observed that the reason behind the stagnant progress in the small and medium enterprise sector is luck of supportive financial platforms and policies that help set-ups.

Speaking in an interview with Money FM News, Trevor Hambayi explained that other economies are developing from innovative SME ideas because they are financially supported by their governments.
“SME’s in other countries like America are thriving because the governments have implemented financial systems that support set-ups which in turn bring in innovative ideas that develop their nations,” he said.

Mr. Hambayi added that the problem in Zambia is that set-ups are not financially supported but disadvantaged by external investors who are more advantaged because of the enacted investment Act.

“Entrepreneurs are challenged even before they think of setting up a business in the country because external investors are more advantaged than them due to policies like that investment Act,” he said.

He further added that the Investment Acts gives the investor more privileges over the local entrepreneur because the investor has incentives that allow them not to pay duty on imported equipment and does not require them to pay taxes on profits due to the Act, there by naturally killing the local entrepreneur even before starting.