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BARCLAYS Bank Zimbabwe will disburse $20 million to the small-to-medium enterprises (SMEs) by year-end, as it seeks to increase its presence in that sector.
SMEs are contributing an estimated 50 percent of the country’s Gross Domestic Product, with Finance Minister Patrick Chinamasa describing them in his 2015 National Budget as the “new economy”. The sector has become important to the Zimbabwean economy through providing employment in the wake of closure of formal companies and local banks are investing in the sector.
Barclays Bank Zimbabwe commercial director Mr Lawrence Nyazema said the bank is planning to introduce a number of auditing firms to assist the SMEs in managing their finances to grow their business.
“We have got a fund that we want to push as much as $20 million thus one specific fund that we have started rolling out for the SMEs sector.
“I am happy that some small loans have started to be rolled out starting from $5 000 to $20 000 — but if we continue with those small figures it takes time to reach to $20 million,” he said.
He said this during the Barclays Bank 5 Talents young business journalist clinic meant to educate journalists on business reporting and financial interpretation.
“Right now in terms of our total number of SMEs we have got 5 000 SMEs on our book but not all of them want to borrow and some of them want simple services. They just want to be provided with foreign currency such that they import their goods,” he said.
He added that the bank has partnered with Ernst & Young, an auditing firm to assist SMEs in managing their business and is planning to engage other auditing firms.
“It’s not just Ernst & Young. Other firms have approached us saying that they have something for SMEs and we want to reach to other firms and also ask them what they have for SMEs.
“If SMEs start to be audited, they can have discipline on how to manage their business and interpret their financial performance,” he said.
He also said that there is an information gap in the SMEs sector and they need to be trained to have records of their business.
“We are happy that one audit firm has said it is ready to work with the SMEs and in other countries financial institutions offer loans to SMEs with audited financials,” he said.
The bank has introduced a section which deals with SMEs and is planning to open other branches in other areas to cater for SMEs.
For the last three years Barclays has been working with a tobacco merchant giving it $75 million to support 400 tobacco farmers in different areas. — BH24
Online Reporter