BACKGROUND
In Zambia, MSMEs represent about 97% of all businesses in the country, contributing 70% of Gross Domestic Product (GDP) and 88% of employment across sectors (ZDA, 2021). Despite this significant impact, many SMEs and Cooperatives struggle to penetrate international markets due to several barriers such as:
- Poor and low-level enterprise performance (e.g., poor product quality, low and inconsistent product supply)
- Unfavourable access to finance
- Lack of market information and technology
- Challenges in meeting international standards and regulations
There are also far too many small businesses offering the same product such as peanut butter or processed honey, yet these enterprises are significantly different in terms of product quality, business management and performance, making it difficult for them to have meaningful contribution to the country’s economic development.
PROPOSED SOLUTION
The Citizens Economic Empowerment Commission (CEEC) intends to catalyse the creation of high value and low risk sustainable medium to large citizen-owned enterprises, including cooperatives, by instigating the merging of homogeneous enterprises at provincial level. This will be through the formation of relatively big stand-alone enterprises with appropriate business management capacity and structure as well as corporate governance systems to ensure enhanced performance and contribution to the national economy. The Commission will loan financing to the merged enterprises and facilitate their access to modern production and processing equipment as well as technical assistance. The Commission now invites expression of interest by targeted small and medium enterprises as well as cooperatives who wish to be part of the enterprise merging initiative to create relatively bigger and stronger business which will leverage economies of scale to deliver higher-value, higher quality and high consistent quantities to larger markets locally and internationally.
This initiative aims to create upscaled enterprises at the provincial level for economic activities such as processing of cooking oil, peanut butter, honey, timber, and cassava, as well as small scale mining.
BENEFITS
- Leveraging economies of scale to become competitive.
- Enhanced access to finance.
- Creation of sustainable high value enterprises managed by targeted citizens.
- Creation of permanent, sustainable, and well-paying jobs.
- Increased wealth creation and innovation by targeted enterprises.
- Enhanced access to high-value local and international markets, including the African Continental Free Trade Area (AfCFTA).
- Access to technical Support.
- Entrenchment of good corporate governance.
ELIGIBILITY
- At least 10 SMEs of similar products/services per grouping within a district or province.
- At least 20 cooperatives of similar products/services with not less than 200 combined membership per grouping within a district or province.
- Proof of formal registration/incorporation for each enterprise.
- Must be a member of a body under the Zambia Chamber of Commerce.
- For SMEs, annual returns and audited financial statements for at least 2 years and must be a small or medium enterprise as categorised by the current National Micro, Small and Medium Enterprise Development (MSME) Policy.
For more information, CEEC will hold engagement and sensitisation meetings through Provincial Town Hall Meetings as follows:
| DATE | PROVINCE | TIME | |
| Tuesday 3 September | SOUTHERN | Choma | 08:30 – 09:30hrs |
| Livingstone | 16:30 -17:30hrs | ||
| Monday 9 September | LUSAKA | Lusaka | 14:30 – 15:30hrs |
| Wednesday 11 September | EASTERN | Chipata | 09:00 – 10:00hrs |
| Friday 13 September | CENTRAL | Kabwe | 11:30 – 12:30hrs |
| Monday 16 September | MUCHINGA | Chinsali | 09:00 – 11:00hrs |
| NORTHERN | Kasama | 16:30 – 17:30hrs | |
| Tuesday 17 September | LUAPULA | Mansa | 10:30 – 11:30hrs |
| Wednesday 18 September | COPPERBELT | Ndola | 08:30 – 09:30hrs |
| Kitwe | 14:30 – 15:30hrs | ||
| Thursday 19 September | NORTHWESTERN | Solwezi | 08:30 – 09:30hrs |
| Friday 20 September | WESTERN | Mongu | 09:00 – 10:00hrs |
HOW TO EXPRESS INTEREST
Interested SMEs and cooperatives should submit their Expression of Interest, including company profiles, filled in Concept note (Download here) as part of the attachments and current production capacity, by applying through the CEEC online loan application portal as follows:
- Access the Online Applications on the CEEC Website https://www.ceec.org.zm to Register your login credentials or Login if existing user via URL address https://applications.ceec.org.zm/account/user-login
- Step 2: Navigate or Click on Products.
- Step 3: Search the Products list, locate “Scaling-Up SMEs/Cooperatives (Merging of Homogenous Enterprises)” and click Apply for this product to continue.
- Step 4: Enter application information.
- Step 5: Locate Applications and click Current Application in the drop-list to display the created application and continue with your submission.
- Step 6: Fill in the required details under the following tabs: Applicant Information, Shareholders, Representative, Management, Financial Information and Attachments (Concept Note, PACRA, ZRA etc..).
- Step 7: Finalise your application and submit once you have confirmed all sections of the application have been filled in.
DEADLINE: Monday 30 September 2024 at 17:00hrs.
In line with Government’s policy, CEEC prioritises and encourages the participation of the youth, women and people with disabilities.
Join us in revolutionising Zambia’s SME sector and the cooperative movement through unlocking our nation’s economic potential on the global stage.
Charles Muwe Mungule, PhD
Director General
CITIZENS ECONOMIC EMPOWERMENT COMMISSION
