By CHATULA KANGALI –
SMALL and Medium Entrepreneurs (SMEs) have failed to access a 56 million Euros loan provided by the European Investment  Bank (EIB) because of their failure to prepare bankable proposals, the Zambia Chamber for Small and Medium Business Association (ZCSMBA) has said.
ZCSMBA Chief Executive Officer Moto Ng’ambi said in an interview that the 56 million Euros loan funded by EIB early this year for SMEs empowerment was still with the banks.
He said SMEs were failing to get access to the funds due to failure to meet such bank requirements as bankable business plans and collateral.
“ The  56 million Euros is sitting  in the banks, not because SMEs  do not need  it  but because they  have  failed  to meet the  requirements. Most SMEs  have difficulties in coming  up  with bankable business
plans and  do not have  collateral,” he said.
Mr Ng’ambi however urged SMEs to make bankable business plans and form partnerships and cooperatives to enable them get the loans.
He said the 56 million Euros was given to the First National Bank (FNB), Finance Bank, AB bank, Madison and Entrepreneurs Financial Centre (EFC).
Mr  Ng’ambi  urged SMEs to  document  and  formalise their businesses for them to expand.
Mr Nga’mbi observed  that  most  businesses owned  by  SMEs were  not  formalised and  documented making  it difficult for them to gain access to loans  for expansion.
“SMEs need to have their businesses registered with relevant authorities with relevant documentation to help provide guidance where the businesses are heading to,” he said.
Mr Ng’ambi said there was also need  for SMEs to review the businesses they were doing  and  consider  switching  to other avenues  if they were  not  growing.
He  observed that some  businesses  had remained  stagnant, a situation he  described as not  good  for the  economic  growth  of the country.