This should be coupled with easier access to credit for productive enterprises - especially micro, small and medium-sized enterprises (MSMEs) – and reforms to foster technological change and productive diversification in line with the changing structure of the global economy. In the above recognition and its continued quest to contribute to unleashing the potential of local MSMEs, the Bank of Zambia hosted a strategic forum on the role of finance in this area, in June this year. As a follow-up, the Government is working closely with stakeholders and the cooperating partners in improving availability of financial resources to MSMEs. Further, some provision has been included in the 2013 Budget. Distinguished participants MSMEs could play an important role in creating employment and spurring growth. However, their competitiveness is undermined by inadequate infrastructure, limited access to financial and business services. Stakeholders can help small firms to integrate in, and reap more benefits from local and international value chains, by facilitating the provision of business services, among which continuous skills development is paramount. An important policy question is how to address the constraints which affect the capacity to grow and generate earnings of MSMEs, very often informal that operate in traditional sectors and account for the bulk of jobs in our country. This feat, ladies and gentlemen, can only be achieved gradually, as the drivers of informality are usually multiple and deeply rooted in long-standing development gaps and weaknesses.
Michael Gondwe: Skills development as a catalyst for youth employment promotion, income growth, and micro, small and medium enterprises Keynote address by Dr Michael Gondwe, Governor of the Bank of Zambia, at the stakeholder consultative workshop, organised by the Technical Education, Vocational and Entrepreneurship Training Authority (TEVETA) of the Republic of Zambia, Lusaka, 18 October 2012. *  *  *  Chairperson Ladies and gentlemen It is indeed an honour and privilege to make this keynote address on skills development as a catalyst for youth employment promotion, income growth, and micro, small and medium enterprises (MSMEs) development. Mr Chairman Over the recent past, macro-economic stability and appreciable economic growth has been achieved in Zambia as reflected in: i. Positive real GDP growth averaging 6.5% per annum in the last 5 years coupled with rising per capita incomes;  ii. Falling inflation, relatively stable exchange rate and downward trend in lending rates;  iii. Favourable external sector performance; and  iv. Stability and growth in the financial sector;  The main challenge that still remains is that of meeting the basic needs of the majority of Zambians, in particular our youth and women, who suffer the brunt of high unemployment. It is for this reason that action is urgently needed to boost skills development in order to enhance productive capacities, investment and decent jobs to sustain the incomes of working families, the poor and the vulnerable.