Players in the Small and Medium Enterprises (SMEs) sector have called upon authorities to create an enabling opportunity for soft loans towards boosting the registered small-scale business in the country.
The plea follows the 44 percent devaluation of the Malawi Kwacha which has seen the country’s economy sailing through troubled waters resulting into closure of most businesses.
According to executive member of the National Association for Small and Medium Enterprises (NASME) Charles Tikhiwa, SMEs are the engine of Malawi’s economy and boosting such businesses can assist in recovery.
He said: “Our view remains the same to say if there could be soft loans to boost the businesses either the government and the bank or others or embassies to ensure that those who are able and even using the certificate apart from maybe collateral to property to be given in soft loans to boost up these businesses.
“Because we have lost through the devaluation we have lost also through the inflation of the increase of raw materials. So I think if we could get soft loans open all those who are registered SMEs. If you could help a lot to sustain, we, we think we believe that we are the engine of the economy in this country as SMEs.”
Tikhiwa has however pleaded with players in the sector to operate in accordance with the current economic performance by adapting the situation.
“We are asking them at the moment to say look at your finances. Look at your business. Don’t force yourself into things which are beyond your age. So let us operate within our ability, financially or management wise otherwise you might end up causing our businesses
“For example, those who know that they are renting in a very high up the basis they are increasing the read dose is better to move where they can manage to pay that get you operating in a place where they look at, you know, to be able to pay rentals,” said Tikhiwa.
Ever since the devaluation of the Malawi currency, prices for most goods have skyrocketed leaving consumers in desperate state of affairs.
