By HELEN ZULU –
THE Government is looking for ways of reducing risks associated with small and medium enterprises (SMEs), Deputy Commerce, Trade and Industry minister Raymond Mpundu has said.
Mr Mpundu said that SMEs who comprised 80 per cent of registered companies in Zambia were perceived to be high risk business ventures due to lack of proper and verifiable business and unacceptable forms of collateral.
He said these factors rendered the SMEs little or no access to sources of finance and life insurance products.
Mr Mpundu said the critical role that SMEs play in economic and industrial development could not be over emphasised.
He was speaking at the joint Standard Chartered Bank and Africa Life Assurance launch of new product dubbed “Enterprise Life” in Lusaka yesterday.
“The introduction of Enterprise Life is timely as government is looking for ways of reducing risks associated with SMEs.
“As government, we are pleased to identify ourselves with such progressive and innovative initiatives which contribute and complement our efforts in stabilizing and enhancing the growth of the SME sector,” Mr Mpundu said.
Mr Mpundu reiterated government’s commitment to safeguard the creation and ensure sustainability of innovative products like enterprise life and the insurance industry that contribute to economic development.
Standard Chartered Bank and Africa Life Assurance chairperson Michael Mundashi said life insurance solutions were meant to better help manage the various risks that come across in various spheres of life.
Mr Mundashi said it was vital to rely on insurance services that provided financial relief when it was required.