By Edward Mukaro
SMALL and Medium Enterprises Development Corporation (SMEDCO) will this year avail loans amounting to ZWL$ 90 million to small business, as small business operators have been paying back their loans well, SMEDCO acting chief executive Mr. Gift Sithole, has said.
Small and Medium Enterprises mainly back Zimbabwe’s economy as statistics show that the sector accounts for more than 60 percent of employment in the southern African country, hence the move by SMEDCO is most certainly going to boost the sector’s productivity levels.
Speaking in an exclusive interview with The Business Connect, SMEDCO acting chief executive Mr. Gift Sithole said SMEDCO was targeting to loan out capital amounting to $90m to assist SMEs, while training will also be a major component for the corporation this year.
“We are targeting ZWL$90 million. Small businesses are paying back well, generally, as they are benefiting from the high inflation, which makes it easier to settle old loans.
“We will be training on small business management and sustainable business management,” said Mr. Sithole.
Contrary to certain circulating media reports, Mr. Sithole said SMEDCO assisted just under a thousand SMEs and will be targeting similar numbers during the course of the year.
“Its not correct that SMEDCO assisted 500 000 SMEs. We assisted under a 1000 and we would be targeting similar numbers. We give loans to the relatively larger and small and medium enterprises,” he added.
SMEs are also set to benefit by getting loans from financial institutions after the central bank (Reserve Bank of Zimbabwe) Governor announced plans of carrying out a Collateral Registry, which will enable small business players to access funding from local banks.
The collateral registry is set to be completed by June 2020.
By Edward Mukaro