SMEs appeal to Govt for credit lines

Herald Reporters
Traders at Mbare Musika have called on Government to avail collateral-free loans to small and medium businesses to capacitate them.

Speaking during a tour by the parliamentary portfolio committee on Small to Medium Enterprises and Cooperative Development yesterday, the traders said banks were not extending loans to them as they had no security.

“We cannot buy enough produce to fill our stalls because of capital constraints,” said a trader, Mr Joshua Katsande. “Banks are demanding collateral, which we do not have and that is pulling us back.

“We are calling upon Government to liaise with banks so that they consider us for loans.”

Chairperson of Mbare Musika Women Committee Ms Agnes Watungwa said they could not get enough stock due to capital constraints.

“In the past we could easily get money from the banks, but due to cash shortages we cannot access credit from the banks,” she said. “If we manage to get the loan, we cannot pay back due to the short-term repayment period and outrageous interest rates.”

Other traders who import produce from South Africa such as plums, bemoaned the exchange rates being charged when they exchange bond notes to the South African rand.