adminSedco general manager Ms Gladys Kanyongo said at the moment the loan facility programme has funded about 160 projects.
“We are in the process of receiving and approving loan applications that we have received from the Small and Medium Enterprises (SMEs). Since the beginning of the year, we have released over $500 000 to 157 projects. We issue out loans starting from a minimum of $500 to a maximum of $20 000 payable over a period of six months with an interest rate of 15 percent per annum,” she said in an interview from Harare yesterday.
In 2011, the corporation released $1,3 million to 800 different projects SMEs were undertaking.
Ms Kanyongo said Sedco was guided by economic sectorial limits and thus enterprises in sectors that include manufacturing, engineering, agriculture, clothing and retail were accessing funding under the corporation’s loan facility.
“There are always challenges faced by any institution that deals with money lending when it comes to repayment. Although we had some challenges associated with some of our clients defaulting payment, this year our collections have improved remarkably compared to last year. The borrowers are meeting their contractual obligations to pay back the loans.”
The corporation institutes revenue collection measures in cases where borrowers default repayment.
Ms Kanyongo said because Sedco was a parastatal, most of its funds came from the Treasury.
“We are a parastatal as a result most of our funds come from the Treasury. In the 2012 national budget we were allocated $6 million and in the mid-term budget review our allocation was revised downwards to $3 million. So far, we have received $200 000 from the Treasury,” she said.
She said Sedco has over the years been working with other developmental partners to unlock funding opportunities.
This year, Ms Kanyongo said the National Social Security Authority advanced $1 million to support its activities.
“We have been working with NSSA over the years and this year the authority has been able to assist us with $1 million and our thrust as an organisation is to further engage other developmental partners for local or off shore credit lines,” she said.
Sedco was established to foster and support entrepreneurial talent with a vision and prime focus to create jobs and sustainable employment in the small, micro, and medium-sized enterprises making meaningful contribution in the socio-economic development of Zimbabwe.
Online Reporter