admincommit 30 percent of their loan books to spur the growth of small to medium enterprises.
According to the RBZ, businesses to be classified as SMEs should have an asset base of between US$10 000 and US$2 million and an annual turnover of between US$30 000 and US$5 million.
Addressing women at the first edition of the “Womenomics” Dialogues in Harare last week, AfrAsia Kingdom chief executive Mrs Lynn Mukonoweshuro said the majority of small businesses do not fit the description of an SME as given by the RBZ.
“Most small businesses do not fit that definition of SMEs as they do not have an asset base or the annual turnover stipulated by the RBZ.
“The only thing they comply with is that they employ five to 20 people at any given time,” said Mrs Mukonoweshuro.
She said women who ran small businesses did not qualify for loans from banks as most of their businesses had an asset base of about US$700, only qualifying them for microfinance.
Mrs Mukonoweshuro reiterated the need for women to join forces and work towards growing their businesses and also be able to access the loans from the banks.
“Instead of one woman going to China and bringing three bags of clothes for resale, they can go as a group and bring in more bags that would generate more money and make them grow at a faster rate,” she added.
SMEs have a huge potential to create employment, drive the economy and widen the country’s export basket, but many have been finding it difficult due to stringent collateral requirements and high interest rates.
Mrs Mukonoweshuro said microfinance accounted for more than 50 percent of AfrAsia’s loan book with women in the SMEs sector receiving the bulk of the funds.
“Women need to be SME players and we urge them to bring their ideas and we will provide the funds and the necessary skills training to help them bring those ideas to life.
“Zimbabwe’s economic turnaround needs SMEs, and it definitely needs women,” she said.
Online Reporter