Bank loans for SMEs

Mmegi Editor | Friday March 28, 2014 16:10

The financial sector seems to be in good health and this is remarkable especially when one looks at the fact that our economy only got out of the world economic crisis a year or so ago.  It is not just Stanchart which reported profits, this week Banc ABC also revealed a healthy performance especially from its local establishment. However Lekaukau’s announcement that their SME lending grew by nearly 200 percent indicates that banks are finally coming round to the fact that Small and Medium enterprises are crucial for the economy and any developing economy for that matter. We also note reports by the local press tha Banc ABC officials recognise the role SMEs play in the development of a healthy economy. This is refreshing coming from the banking sector. After all banks could take the safe route and concentrate on the run-of-the-mill strategies which give more attention to those already endowed with resources. It is a welcome move for banks to seriously consider the SME sector and lend a helping hand. It has been our position that with assistance SMEs contribution to our economy could become even more pronounced. Lekaukau says they have tried to avoid start-ups because of the level of risk, that perhaps is expected but the bank’s decision to give SME loans is a welcome move. Going forward banks should innovate and improve their level of service to SMEs.

 

Khama’s increment will undermine negotiations

This week President Khama made an announcement that his government had decided to unilaterally increase the salaries of non-unionised civil servants by 4 percent. Khama argues that government was forced into making such a decision because it is seeking to avoid backdating payments after the Bargain Council work is complete. Khama is trying to do what in Setswana is called go iphitlha ka monwana. We refuse to believe that the President could be doing this for legitimate reasons. We know Khama has always argued that he finds negotiations with unions a waste of time. The increment cannot be seen as anything but an attempt to weaken the strength of the unions. Of course historically this government has always viewed union power as something to be clipped. The problem is that as a result of his flawed logic the Bargain Council loses credibility. Next time Government attempts to negotiate with unions, and this is next year, unions will have every right to view the process as a waste of time. That cannot be helpful to government and union relations.

Today’s thought

Where trade unions are most firmly organised, there are the rights of the people most respected

 

– Samuel Gompers, English-born American union leader