SMEs loan facility generates US$31m

Lissa Ngorima
At least 29 000 small businesses have benefited from a $12,5 million five-year loan facility extended by international aid agencies, creating about 6 000 new jobs and promoting formalisation of lower level business ventures.

The Sunday Mail understands that the five-year programme which began in 2012 and ended last month saw beneficiaries expand operations and generate a collective $31 million in revenue.

International aid partners — USAID, Department of International Development (DFID) and Swedish International Development Cooperation Agency (SIDA) — funded the programme upon realising the small businesses’ potential in contributing towards employment creation and economic revival.

Small and Medium Enterprises and Co-operative Development Minister Sithembiso Nyoni recently told The Sunday Mail that the programme had mostly benefited the youth and women.

“The purpose of this programme was to strengthen small businesses, to build skills and improve the lives of young Zimbabweans, especially women, to contribute towards economic growth,” she said.

“From the US$12,5 million loan facility extended five years ago, the programme has generated over US$31 million in terms of the income and created over 6 000 jobs.

“Over 29 000 young people managed to access the funding after formalising their operations, which was a prerequisite that benefits Government because the businesses will then contribute to the fiscus through taxes.”

Minister Nyoni said while the term of the loan facility had come to an end, it was now incumbent on the small business to take advantage of the boost and seek measures to ensure their ventures continue to grow through targeting lucrative markets.

According to Government estimates, nearly 60 percent of the country’s productive ages — 15 to 65 — is employed by small businesses that contribute over 50 percent of the Gross Domestic Product. Concerns have, however, been raised by Government over failure to generate revenue from SMEs, as the majority are not formally registered.