Steward Bank moves in to promote SMEs
STEWARD Bank has become the latest financial institution to introduce not only a targeted financial facility for small to medium enterprises (SMEs), but a comprehensive programme to help establish business models, access markets and training programmes as well.
Through the training programmes provided by the bank, beneficiaries will be able to receive consulting services from certified public accountants and reputable advisors to business and other high-net individuals.
The specialised advice ranges from capital formation, cashflow and wealth management.
Steward Bank chief executive officer Dr Lance Mambondiani said the bank’s plan hinges on three components which include persuading beneficiaries to open a bank account (Zama Zama account), the incubation pod - where people meet to discuss their business plans - and assistance in the registration of a company.
At the incubation pod, aspiring entrepreneurs are given the opportunity to make presentations and interact to share ideas with a vision to establish new businesses and nurturing already existing ones.
“We have introduced a number of services we believe can change the dynamics of the SME sector.
“With the Zama Zama account, we have realised that a lot of SMEs were not given access to banking services. At least those who have are now given the banking services not necessarily relevant to them.
“We are assisting the SMEs to establish their own business, easily accessing markets through linkages and training them on doing balance sheets and other financial programmes,” said Dr Mambondiani.
Through Steward Bank’s advisory service partners, SMEs will be assisted to register companies, regularise their businesses with Zimra (Zimbabwe Revenue Authority) and establish proper accounting and bookkeeping systems.
At times, SMEs, including large corporations, have to undergo stringent legal and registration formalities in order to operate. The support also extends to helping small businesses develop their own websites through Ownai - another subsidiary of Econet Wireless Zimbabwe.
They will also have an opportunity to advertise through platforms provided through the bank, including access to technological applications that assist in building financial statements and managing the balance sheet.
Steward Bank, which is a wholly-owned subsidiary of Econet Wireless Zimbabwe, joins other institutions such as FBC, ZB, Fidelity, Agribank and NMBZ that seek to tap into opportunities provided by SMEs. It is envisaged that by actively growing and integrating the informal sector into the mainstream economy, it will be possible to create a niche for the financial services sector. Independent estimates suggest that SMEs contribute over 50 percent of gross domestic product (GDP) and employ more than 60 percent of the population.