SMEDCO offers helping hand to small businesses in times of need
MICRO, Small, and Medium Enterprises (MSMEs) businesses the world over have arguably been the hardest hit by the COVID-19 pandemic with Zimbabwe not being an exception.
Most MSME operations in 2020 were halted when blanket lockdown restrictions were put in place to limit travel and keep at bay the ravaging COVID-19 pandemic.
During the lockdown period, MSME businesses could not operate to full capacity, and the volume of customer traffic was low and in some instances non-existent.
This had disastrous effects on MSMEs in most sectors except maybe those in the manufacturing/selling of masks and sanitisers.
Government saw the damage of COVID-19 on MSMEs and extended funding to these businesses.
The Small and Medium Enterprises Development Corporation (SMEDCO), a quasi-government institution mandated to ensure the growth and promotion of micro, small and medium enterprises, has been allocated $500 million under the economic recovery and stimulus package for on-lending to SMEs in 2021.
This is part of government efforts to boost the economy as SMEs are a key driver to the growth of the Zimbabwean gross domestic product (GDP).
SMEDCO was also a partial beneficiary of the $18 billion economic stimulus package for COVID relief in 2020.
SMEDCO managed to channel $69 261 172 to help resuscitate ailing SMEs who were hard hit by the terrible pandemic.
In 2020, SMEDCO also managed to disburse in total $114 762 472 to ailing MSMEs teetering on the brink of collapse from the harsh
effects of the COVID-19 pandemic.
A record 1 804 SME worker jobs were thus sustained with 407 of the jobs being new.
Over 200 clients were funded in 2020 and this number is expected to grow in 2021 to cover more MSMEs.
The year 2021 is a promising one for SMEDCO, as Women Affairs, Community, Small and Medium Enterprises Development minister Sithembiso Nyoni has since appointed a new board to provide leadership to the parastatal so it can deliver shareholder value over the long term.
The SMEDCO board is composed of Kelebert Nkomani (chairman), Charity Kadungure (vice-chairperson), Nkosentsha Mpala, Francis Gondo, Sharon Mugabe-Garwe, Pamela Muzenda and Gift Sithole (acting chief executive officer).
The minister is championing the needs of SMEs, and plans are in place to construct modern MSME workspaces in Bindura.
The newly-appointed SMEDCO board has a mix of strategic and operational thinkers and a bal- ance of skills and experience.
The new team is experienced and possesses years of demonstrated good judgment, credibility, and strategic thinking, thus the future of SMEDCO looks bright and it will do its part to implement business plans, strategies, and policies to train, fund, and promote SMEs and operate with profits and sustainability in mind.
The board will also ensure com- pliance to make sure the parastatal meets its legal and accounting requirements and it will also monitor performance targets.
The advantage of SMEDCO loans is that they offer clients low rates of interest and low rental payments.
MSMEs which borrow from SMEDCO find it very easy to repay.
When it comes to workspace, SMEDCO offers conducive and affordable workspaces which make life easier for SMEs as it boosts their profits.
SMEDCO is keen on supporting innovative and sustainable SMEs and is there to ensure that they grow and contribute to the GDP.
Apart from funding, SMEDCO houses SMEs and provides workspaces in Masvingo, Chitungwiza, and Highfield. SMEDCO also trains SMEs.
When it comes to MSME funding, SMEDO encourages SMEs to borrow amounts that they can repay so that the fund can benefit others.
The institution covers the entire country and has provincial offices in Harare, Bulawayo, Gweru, Masvingo, Mutare, and Bindura.
To qualify for a SMEDCO loan, one has to be over 18, a Zimbabwean citizen, and running an MSME business that is operating locally.
SMEDCOs mandate covers the micro, small and medium enterprises as well as co-operatives.
These cut across all sectors of the economy. SMEDCO’s success stories are posted on their Facebook page www.facebook.com/ smedcozw. For more visit their website www.smedco.co.zw.