PRESS STATEMENT
By Melvin Mweemba
For Immediate Release
Call for Government to Reconsider the Current Approach on Loan Disbursement
I wish to urge Government to strongly reconsider the current approach of giving out loans directly to cooperatives, companies, and individuals. While the intention behind these interventions is noble and aimed at empowering our people, the results have unfortunately not yielded the desired impact.
It is clear that many beneficiaries do not take government funds with the seriousness they deserve. The lack of proper monitoring, training, and accountability has led to widespread misuse of these resources, and this is why we continue to record very few success stories despite the huge sums of money being disbursed.
To address this challenge, Government should instead engage and partner with established financial institutions that have the capacity to train, monitor, evaluate, and recover the loans. These institutions have systems already in place to ensure that funds are properly managed and that beneficiaries are supported to succeed.
Small and medium-scale businesses remain the backbone of any thriving economy. If well supported, they can be the true engines of growth, creating jobs, wealth, and sustainable development for our country. This is the same story of transformation we have seen in countries like India, where small-scale enterprises have played a critical role in driving economic progress.
It is therefore imperative that Government shifts its strategy from direct lending to structured financial partnerships. This will not only safeguard public resources but also ensure that loans achieve their intended purpose of empowering citizens and building a stronger economy.
Issued by:
Melvin Mweemba