PeP STATEMENT No.72 ISSUED ON THURSDAY, 9th SEPTEMBER 2021: FOR IMMEDIATE RELEASE

1. As Patriots for Economic Progress (PeP) we strongly believe that the creation of the new Ministry for Small & Medium Enterprises is an unnecessary duplication to the mandate of the Ministry of Commerce, Trade and Industry. The Small Enterprises Development Act of 1996 defines an SME as an enterprise with an annual turnover of not more than K80 million. This means that when you look at the nature of business entities operating in Zambia, more than 90% of them can be classified as SMEs. On the other hand, the mandate of advancing the interests of Zambian businesses falls under the Ministry of Commerce, Trade and Industry. This means that with the creation of the new Ministry of Small & Medium Enterprises, there will be a 90% overlap between the two ministries, as they will be servicing the same entities in the economy.

2. As Patriots for Economic Progress our considered view is that if President Hichilema wanted create an additional ministry to advance the interests of minorities in the economy, he should have considered creating a Ministry for the Informal Sector. Several World Bank studies have revealed that Zambia’s informal sector accounts for at least 40 percent of our economy and is made up of marketeers, street vendors and other traders in the grey economy. Additionally the informal sector is not captured in the measurement of the country’s Gross Domestic Product (GDP) and its participants do not have adequate access to the banking system. This means that the informal sector players face unique challenges which require the intervention of Government through the establishment of a dedicated ministry. Part of the mandate of such a proposed Ministry for the Informal Sector would be to help entities in the informal sector to transition to the formal sector so that they can contribute to the country’s GDP.

3. As Patriots for Economic Progress we therefore call upon President Hakainde Hichilema to consider abolishing the Ministry of Small & Medium Enterprises and instead replace it with a Ministry for the Informal Sector. Such a move will achieve two key benefits; firstly it will help address the duplication that currently exists between the Ministry of Small & Medium Enterprises and the Ministry of Commerce, Trade and Industry, and secondly it will help to address the special needs of players in the informal sector and help them to transition to the formal sector. Such a scenario would significantly contribute to the much needed growth of our economy and result in the creation of the much needed employment especially for the youth.

Thank You and May God Bless the Good Citizens of the Republic of Zambia and Our Hopeful Nation.

YOURS SINCERELY

SEAN E. TEMBO (SET)
PARTY PRESIDENT
PATRIOTS FOR ECONOMIC PROGRESS (PeP)

6 COMMENTS

  1. Tembo please reflect before you issue suggestions. You want UPND to establish a Ministry of informal sector to promote formal sector!!! You write “Part of the mandate of such a proposed Ministry for the Informal Sector would be to help entities in the informal sector to transition to the formal sector so that they can contribute to the country’s GDP…. it will help to address the special needs of players in the informal sector and help them to transition to the formal sector” A forward looking person would not be creating a Ministry of Informal sector!! Ministry of Small and Medium Enterprises is more forward looking and indicates the need to formalize.

  2. You are actually not the Nut case I assumed you were. I listened to lsome of your ideas and points on radio yesterday, and I must admit the made sense.

    So, I confess I judged you harshly on some issues, but appreciating your thinking when it comes to offering checks and balances today. I think so far you must be one of the few giving advise on what you would do if it were left to you to make a decision. This is healthy.

    What you have shared is appreciated and should be considered by the new administration. Especially that we all want Zambia to win. By the way, have you officially sent out this suggestion in writing? If yes make sure you have have it stamped. It a great and priceless tool when it comes to campaigning, it will show you tried to advise and they did it listen.

  3. Tembo, in broad terms, the informal sector comprises of enterprises which don’t comply with the full extent of government laws and regulations. This informal sector is characterized by its ease on entry, low levels of skills, labour intensive technology and small firm sizes. So creating a Ministry of Small and Medium Enterprises is more inclusive as this would be vehicle of supporting enterprises in both the formal and informal sector but providing this support in different ways and in different areas according to the needs and challenges the informal and formal sectors face in enhancing their enterprises!! Enterprises can either be formal or informal.

  4. At least this time no insults, no reference to mentalities. It is good, but small and medium scale industries looks a good ministry, which will make some of the informals into formals.

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