No takers for $6m loan facility

THE Small and Medium Enterprises Development Corporation (SMEDCO) says a $6 million loan facility for lending to Small to Medium Enterprises (SMEs) is lying idle as most intended beneficiaries shy away from assuming debt.

Speaking on the sidelines of a training workshop for SME stakeholders in Mutare on Tuesday, SMEDCO Mutare branch manager Mr Ransom Muusha said they had only lent out $750 000 since the facility was availed in January.

“Out of the $6 million that we received from Treasury, only $750 000 worth of applications have been approved with some still in the process. Many small-scale entrepreneurs are not applying for these loans mainly because of lack of knowledge.

“Some of the entrepreneurs may not even be aware that there are such facilities that could assist them in starting up and developing their businesses,” he said.

Mr Muusha said in line with the gender mainstreaming concept, SMEDCO had relaxed collateral requirements for women to encourage them to apply for the loans.

“We encourage women to also apply because traditionally, men have always been on the forefront. As an institution we have relaxed the collateral requirements specifically for women. We realised that most women were falling short when it comes to collateral issues,”he added.

He also assured small scale entrepreneurs that such facilities would continue to be offered as long as they are correctly utilised.

“As an organisation, we try by all means to cushion them (SMEs), especially now when things are really tough. However, we have to see progress because this money has to be used in a manner that benefits the nation as a whole,”said Mr Muusha.