Denny Kalyalya

Bank of Zambia Governor Denny Kalyalya

By Barnabas Zulu

BANK of Zambia (BOZ) governor Denny Kalyalya says financial strategies that do not give adequate attention to Small Medium Entrepreneurs (SME) is not likely to succeed.

Speaking during a BOZ and Alliance for Financial Inclusion (AFI) joint symposium for the 12th SME Finance Working Group and 14th Financial Inclusion Strategy Peer Learning Group meetings, Kalyalya said research had demonstrated that SMEs are affected by market failures, barriers and inefficiencies in both the business and policy environment.

“It has also been observed that productivity of SMEs is affected by access or lack of it to strategic resources such as skills, knowledge networks, and finance,” he said.

“An effective SME strategy should therefore result in the formulation of policies that take into account the challenges of the SMEs from the demand and supply sides, changes in regulation, markets and technology that occur within and across the borders.”

Kalyalya said member countries should have a task to make viable financial inclusion policies which should be effectively implemented to achieve the intended goal.

He has since urged policy makers not to be overshadowed by challenges affecting financial inclusion.