‘I APPLIED FOR A DEED IN 2006’ -SMEs SAY FINANCIAL INSTITUTIONS HAVE RIGID STRUSTURES

Small and Medium Entrepreneurs in the country, have decried the lack of government commitment in improving their operating environment.
The concern comes amid deteriorating interest rates –a situation which is barring small scales enterprises to access business loans thereby by being denied growth.
Speaking in an interview, Lujerio Kambalame plying trade under Kambalame general suppliers, said this has therefore rested small businesses operating within their initial capital.
Kambalame also condemned commercial banks for lack of openness to underdeveloped business operators.
“I applied for a deed in 2006 but up to now it is not yet out for reasons best known by my bank.
“I just left it and concentrated on my business without further capital investments.” Kambalame was referring to banks rigidity in issuing loans to businessmen.
Meanwhile, the National Association for Small and Medium Entrepreneurs NASME concurred with Kambalame on the uncertainty surrounding SMEs operation environment.
Said NASME through its National Coordinator- William Mwale;
“Malawi has the highest interest rates in SADC and has remained in top two in Africa.
“This is very unfortunate for SMEs who are the ideal in the country’s social and economic development.”
Currently, the normal lending rate for commercial banks is averaging 47%.