Low Uptake On Covid-19 Stimulus Package By Businesses, Finance Minister Reports

Finance Minister Dr Bwalya Ng’andu says businesses have been slow to apply for funding from the K10 billion stimulus package set aside by the Bank of Zambia to boost economic recovery during the coronavirus pandemic. 

Dr Ng’andu says a lack of information is to blame for so few businesses accessing the funding made available via commercial banks.

He said that the government would now be increasing the number of non-bank financial institutions that are able to disburse the money because many small and medium-sized enterprises (SMEs) access loans through these facilities. 

It comes after former finance minister Katele Kalumba called on the government to distribute clearer guidelines on what funding was available to SMEs, saying that setting aside the money without publicising how to access it totally defeated the purpose of the fund. 

The K10 billion fund was set aside in early April, with the aim of providing medium term liquidity to businesses during the Covid-19 pandemic. 

The Governor of the Bank of Zambia, Denny Kalyalya, said the fund was part of a comprehensive list of measures that the bank was taking to respond to the crisis. 

Dr Kalyalya explained that the fund would run from between three to five years, allowing financial service providers to restructure or refinance their facilities, or indeed lend on to eligible clients such as SMEs.