Minister of Small and Medium Enterprise Development, Elias Mubanga, has hinted at the possibility of shifting the management and distribution of empowerment funds in the country to the private sector.
Mr. Mubanga said that in the near future, the ministry may consider transferring the responsibility of handling empowerment funds to banks and other financial service institutions.
Speaking in an interview with RCV News in Lusaka, Mr. Mubanga explained that the private sector has a proven track record of accountability and effective loan recovery, an area in which the public sector still faces challenges.
“The move may also be necessitated by the low repayment rates experienced under the public sector,” said Mr. Mubanga.
He further praised the efficiency of private sector operations, emphasizing the need for government agencies to emulate their discipline when it comes to loan recovery.
-RCV