CEEC Disburses Over K153 Million Under Marketeer Booster Loan From 2022 To 2023, As Beneficiaries Record Business Growth
Marketeers and traders in the informal sector play an important role in Zambia’s economy.
The informal economy plays a critical role in the lives of thousands of individuals in both urban and rural set up across Zambia, as it provides livelihoods, employment and entrepreneurship opportunities to the population.
Zambia’s informal sector employs 90% of the labour force, and has grown rapidly in recent years but access to affordable finance has remained a challenge for industry players.
It is in this vein that Government through the Citizens Economic Empowerment Commission (CEEC) has recognized the informal sector through the provision of the Marketeer Booster Loan.
CEEC, a statutory under the Ministry of Small and Medium Enterprises Development, is a body corporate established through the enactment of the Citizens Economic Empowerment Act No. 9 of 2006 to foster broad-based economic empowerment in Zambia.
On 17th November 2022, President Hakainde Hichilema officially launched the Marketeer Booster Loan in Lusaka. This loan product offers affordable, competitive, and easily accessible financial product with a flexible repayment plan on the loans between K500 and K5, 000.
According to CEEC Public Relations & Communications Manager, Michelo Mukata, this loan product was introduced to ensure that marketeers have a source of affordable financing.
From 2022 to date, the Commission has disbursed over K153. 5 million to 74, 753 marketeers countrywide.
Mr. Mukata told Money FM News in an interview that when it comes to other providers of credit facilities such as commercial banks, marketeers tend to face several barriers as they are subjected to high interest rates that the Marketeer Booster Loan does not have.
“For us as CEEC, the Markeeter Booster Loan was a game changing loan product that we introduced to ensure that marketeers have a source of affordable financing. Accessibility is as easy as can be, all that one has to do is just provide, the market where they are operating from and a valid mobile money number, with a photocopy of their NRC,” Mr. Mukata explained.
He added that this facility is easy to access as it has zero interest rate and can be paid back over a considerable period of time.
And Mr. Mukata revealed that the Commission has exceeded its 40 percent target for women and 15 percent for the men with regards to disbursement of the loan product, with 50 percent being the number of women that have accessed the funds and 23 percent have been men.
“Youths and persons with disabilities were below the target, for youths it was 40 percent and persons with disabilities its 5 percent and we find ourselves with 26 percent of the funds going to the youth and only a percentage going to persons with disabilities.:
“We are having continuous engagements with marketeers in markets to make sure that they come forward to access the facility, and for those that have borrowed, the message is for them to repay the loans so that in turn, other people can benefit from what the Marketeer Booster Loan is all about, offering affordable financing to a segment of commerce and trade that is not usually serviced by commercial banks and other credit providers,” he stated.
Meanwhile, one of the beneficiaries of the Marketeer Booster Loan, Moses Tembo, said the K5, 000 he got from CEEC in 2022 has increased his capital, thereby improving the business.
Mr. Tembo, who sales second hand clothes at Lusaka’s City Market, wants CEEC to increase the loan amounts to K10, 000 from the current K5, 000, and continue to give the facility especially this time when the business is slow.
““A loan goes a long for us marketeers, it has increased my capital. I got a K5, 000 in 2022, so my business has improved. I would encourage my fellow marketeers who got the loan to pay back for others to benefit, for me I have already paid back.”
“I would also love CEEC to increase the loan amounts to K10, 000 for the marketeers from K5, 000, and continue to give us the facility especially this time when the business is slow,” Mr. Tembo said
Another beneficiary Winnie Mwale, who sales electrical appliances and toys at Chelston Market in Lusaka, revealed that the K3, 000 she got from the Commission in 2023, helped her a lot because the business was almost collapsing due to lack of funds to recapitalize it.
Ms. Mwale told Money FM News in an interview that she would need a bigger capital of up to K20, 000 from CEEC, for her business to benefit more.
“It did not benefit me enough because I got a K3, 000. The business I do of selling electrical appliances and toys, needs a big capital. So, I would need a bigger capital like K20, 000. I’m sure it will really benefit me.
“But I would say the loan really worked for me because the time I was getting it in 2023 I was so broke, but my business survived. I managed to pay back because it was just a K3, 000,” Ms. Mwale stated.
She also advised other beneficiaries to get loan amounts which they will keep their business afloat even after paying back.
“It is up to the individual to get the money that they will be able to pay back and it will bring profit to you, rather than get a bigger amount then you start trying other businesses, the money will shrink,” she added.
And Zambia National Marketeers Credit Association (ZANAMACA) is confident that the loan scheme will go a long way to reduce inequality and alleviate poverty in the country.
Speaking in an interview with Money FM News, Association President Mupila Kameya, called for enhanced collaboration between marketeers and CEEC to efficiently realize potential of the empowerment loans.
Under the same product, CEEC is supporting bulking and cold chain storage facilities to allow the markets and marketeers operate better, through improved storage facilities, with a maximum amount of K500, 000 per marketeer cooperative.
