Government concerned about MicroKing: Minister Chinamasa

Business Reporter
Finance and Economic Development Minister Patrick Chinamasa says government will bend over backward to save closed AfrAsia Zimbabwe’s subsidiary MicroKing due to the role it plays in assisting the informal sector. Addressing a joint press conference with visiting UK Department for International Development (DfID) permanent secretary Mark Lowcock on Wednesday, Minister Chinamasa said government will not allow the institution to go under.

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“We are concerned about MicroKing, it should not be allowed to collapse because of its assistance to SMEs,” he said.

The RBZ temporarily closed the AfrAsia subsidiary in order to protect its assets pending the finalisation of its disposal to an interested investor. AfrAsia’s banking unit was closed after the central bank cancelled its licence.

Minister Chinamasa said the DfID has also committed to saving MicroKing indicating that the Development Department had invested $800 000.

“I have asked them to scale up their investment in MicroKing to enable it to continue serving its purpose,” he said.

Mr Lowcock expressed the organisation’s desire to channel resources to MicroKing in order to assist the informal sector countrywide.

Since dollarisation Micro King has lent $200 million to the informal sector as it sought to bolster operations of SMEs touted as the new economy.

Some of the products offered by the organisation include Small Scale Dairy Finance scheme, Youth Skills loan product, Order Finance and Asset Finance.

Minister Chinamasa spoke of the need for improved relations between Government and the UK.

“The UK is currently a significant contributor to the country’s economy but through indirect channels such as development agencies and banks.

“I appealed for them to engage in the same manner with government through bilateral agreements,” he said.

Minister Chinamasa said British business personnel continue to sit on the fence due to frosty political relations between Harare and London, but these should fall away as they are of no benefit to either Zimbabwe or UK.