Banks accused of failing to support up-and-coming businesspeople

A representative of a flea market traders association in Masvingo, Mrs Memory Mwedzi, said the banks were not supporting up-and-coming businesses.
She said applying for a loan was hectic as conditions set by financial institutions were difficult to meet.

“The banks are not supporting our strides to contribute to the fiscus as evidenced by the stringent conditions on accessing loans. Many businesspeople have no collateral and those with such assets have to contend with high bank interest rates,” she said.

A member of the National Economic Consultative Forum in the province, Mr Thomas Mutetwa, said banks were not helping entrepreneurs, especially small businesses.
“Financial institutions are making it difficult for our survival as businesses. In the past we knew that there were sources of business life but that has since changed as they charge interest rates that are too prohibitive,” he said.

Mr Mutetwa said the Ministry of Finance was not considerate when charging duty on raw materials for the manufacture of stationery.
“We are made to believe that all imports of educational books are exempted from import duty but the same waiver does not benefit those that buy raw materials used to manufacture these books. We appeal to the ministry to consider extending the same exemption to these raw materials,” he added.
Minister of Finance, Mr Tendai Biti, at a meeting in Masvingo recently, noted with concern the banks’ inflexibility in terms of giving business loans and encouraged banks to relax their conditions so that they can promote indigenous businesspeople.

“Everyone should be prepared to contribute to the Gross Domestic Product and banks are supposed to put some conditions that suit indigenous businesses,” he said.