Zimbabwe mulls SMEs bank

Jun 03, 2012

By Praise Runyowa

HARARE - The Government intends to soon open a bank that will exclusively provide loans and other financial services to small and medium-scale enterprises (SMEs).

 The initiative is part of efforts to empower the entrepreneurs, most of whom were failing to access loans at conventional banks owing to lack of collateral.

In an interview last week, Small and Medium Enterprises and Co-operative Development Minister Sithembiso Nyoni said her finance counterpart, Tendai Biti, was already working on providing funds for the establishment of the financial institution.

She said the project would ultimately leverage the sector and encourage joint work among beneficiaries. “The bank will enable those already in business as well as aspiring entrepreneurs to access capital,” she said.

“They will become self-reliant; we want investors to come from within the country. We are hoping the bank will benefit them a great deal because they would have a better way of saving money.”

Nyoni said Government efforts to develop SMEs would ensure the sector contributes significantly to the country’s economic growth.

 She said entrepreneurs were not paying tax because “they are not being taken seriously”.

“In my discussions with the Minister of Finance, we realised that SMEs must be taken seriously and be involved in marketing.

“They account for 85 percent of the business economy, and the process of involving them in marketing is at an advanced stage.

 “The Glen View Complex for SMEs and Mbare Flea Market “Mupedzanhamo” (both in the capital Harare) need specific infrastructure. My ministry will grade them according to standards.

“I am putting emphasis on togetherness. A lot of people who work together are benefiting. There is need for co-operation.

“Everybody has a right to development. Capitalism has failed, even in Western countries. It is time for us to work and create employment for others. Be owners of businesses and shareholders.”

The Sunday Mail