Exhibitors lament shortage of funding

relax their lending conditions.
Mr Owen Tendenguwo of Chi-town Weekly said the major challenges they are facing, as upcoming businesspersons in the media industry include the shortage of funding.
“We are facing financial constraints and we are hoping that banks will relax their lending conditions especially on collateral so as to help empower upcoming indigenous business people.
“This expo is a good initiative that helps give exposure to upcoming business people as well as create new markets for products and services provided by Chitungwiza business people,” he said.
Ms Evelyn Kamuruko, who operates a small business, said banks should not underestimate the importance of SMEs as they contribute significantly to the economy in terms of employment and revenues.
“Banks should change their policies so that they take action after a borrower has defaulted, rather than before. The present state is hindering the growth of SMEs in the country,” said Mrs Kamuruko.
Most local banks require collateral in the form of expensive property such as houses and cars to give out loans, which small entrepreneurs typically do not have.
However, many exhibitors are impressed by the moves being taken by the Government in empowering indigenous people saying this will help in improving lives of Zimbabweans.
They also commended the additional US$20 million SME support that was announced by Finance Minister Tendai Biti in his Mid-Term Fiscal Review Policy.
According to the statement, Government is setting aside an additional US$5 million, which is being complemented by a further US$10 million from CBZ Bank and US$ 5 million from the Arab Bank for Economic Development in Africa.
“It is my expectation that these resources will meaningfully capitalise the micro-finance revolving facility for the disadvantaged SMEs who were hard hit during the macro-economic turbulence period and ordinarily lack access to bank credit,” said Minister Biti.
Already US$0.5 million has been disbursed to Sedco for on-lending to small and medium enterprises out of the Budget allocation of US$3,35 million.
“The additional US$20 million is meant to meet the high demand from these important enterprises,” said the minister.
Exhibitors in the SMEs sector that took part included Young Africa Skills Centre, Furniture King, Upperwill, Chitungwiza Arts Centre and Youths Advocate Zimbabwe.
One of the exhibitors Ms Fiona Chisvo of Upperwill Investments applauded the expo saying it has helped in giving the businesses a chance to network and establishes new markets.
“There is a big improvement this year in terms of turnout and we hope that many exhibitors will benefit from this expo by acquiring new markets,” she said.
Most of the exhibitors said there is also need to communicate and educate small entrepreneurs of the need to advertise their products and services.
They said the SMEs sector has been the worst affected by the economic downturn and it was therefore important for Government and other key stakeholders to come in and address the challenges facing SMEs for the country to enjoy the benefits that come with a functional SMEs sector.
The revitalisation of the small to medium enterprises sector would greatly contribute to the socio-economic development of Zimbabwe if all stakeholders worked towards creating an enabling environment for growth.