Launch for $90m SMEs funding package
THE Ministry of Small to Medium Enterprises and Co-operative Development will today launch a $90 million funding package aimed at capacitating various up-andcoming businesses across sectors, a Cabinet Minister has said.
e small to medium enterprise (SMEs) sector has registered robust growth in the last few years resulting in the creation of more economic opportunities and employment.
SMEs Minister, Sithembiso Nyoni, yesterday said the launch of the fund would be done at a function in Harare. She said Government has scaled up its support for the sector to enhance increased production.
“We have unveiled $90 million to different SMEs that operate in different sectors. We have given $10 million to horticulture, cross border traders $15 million, small scale gold facility $40 million, women empowerment $15 million and business linkages $10 million,” Minister Nyoni said.
She said she was working hard to engage the Reserve Bank of Zimbabwe (RBZ) to help facilitate funding for SMEs.
“I have been working very hard with the RBZ to help SMEs with funding to necessitate the growth of their business. They (SMEs) have been crying because of lack of finance but as for now we have managed to come up with proper funding,” Minister Nyoni said.
She said SMEs now have no reason to complain about lack of funding but have to organise themselves and find ways of utilising the available funding productively.
The Minister also stressed the need to capacitate SMEs with knowledge of financial literacy to ensure proper management practices.
“Now that they know they have a $90 million facility, they should be given education on how to use the money wisely so as to prepare them for the real world of doing business,” she said.
Minister Nyoni advised SMEs operators that the funding was not free money as it was repayable with interest.
“There is no free money in business and this $90 million facility will come with interest so SMEs need to abide by the rules of the financial institutions that service them. For anything in the world one has to pay,” she said.
Minister Nyoni said since the fund is now available for SMEs, their next port of call was fighting for development of adequate infrastructure to support small businesses.
Last month, Minister Nyoni said 200 000 informal businesses had been formally registered since January this year with 600 000 jobs created in the sector alone.
She also said SMEs have become a critical economic pillar in Zimbabwe, employing hundreds of thousands of people at a time when big corporates are limping in the face of a myriad of challenges in a harsh economic environment. — @Kiyaz_Cool.