BY Orchestra Kamanga
The Managing Director of Atate Investment which is located in Manase Blantyre, Lovemore Katanda has faulted government for putting punitive conditions for SME’s when borrowing MEDEF loans.
Speaking in an interview, Katanda said the condition which government put in place is not favourable to small and medium industries particular.
“If your capital base is K500, 000 you cannot borrow money more than that amount but less like K250, 000 – the situation which cannot boast SME’s businesses,” he said.
Katanda also blamed the current Administration for suspending MEDEF and firing the Management team saying they want to redesign the system and doing so can kill Small and Medium Enterprises.
He further said Small Scale Business depend much on government’s loans than Bank and other borrowing institutions like FINCA and Pride which have higher rending rates.
Commenting on Ministry of Trade and Industry giving 60 percent business to local Malawians and 40 percent foreigners Katanda said it is important as it will give job opportunities to local Malawians.
“When government gives more jobs to local Malawians it can promote country’s economy and create more jobs than giving more business to foreigners,” he said.
Katanda said when government gives more business opportunities to local business Enterprises they compete with foreigners and produce quality products and goods.