Tinashe Makichi Business Reporter
CBZ Holdings has extended in excess of $150 million in loans towards the development of several small to medium enterprise projects since dollarisation.The financial services group, the country’s largest, has been at the forefront of SME development offering financial support and services to the formerly marginalised smaller businesses in the country.
Mr Nyemudzo said out of the $150 million investment made into the SME sector, the financial services group is sitting at a loan book of about $36 million with a default rate of less than one percent.
He said this while addressing the media yesterday ahead of the inaugural SME Indaba in Bulawayo on 23-24 March 2016 being facilitated by CBZ Holdings in partnership with the Embassy of India and organisation I AM SME of India .
“Since dollarisation we have put in excess of $150 million into various SME’s activities in the format of loans, training and other related programmes.
“As we stand, the performance of the SME sector has been very good to the extent that out of the $150 million investment made into the sector we are sitting at a current loan book of about $36 million with a default rate of less than one percent which is very key,” said Mr Nyemudzo.
“We have also managed to come around the issue of collateral. In the event that you don’t have a tangible asset as security but with a viable business venture; there is an insurance product that we have introduced in the unlikely event that you pass on before the loan has been repaid,” he said.
Small to Medium Enterprises and Corporative Development Permanent Secretary Evelyn Ndlovu said Government has facilitated the issuance of $10 million worth of Treasury Bills towards capitalisation of the Small and Medium Enterprises Development Corporation.
SMEDCO is a development finance institution which primarily exists to promote the development of micro, small and medium enterprises, and co-operatives in the country, through lending and capacity building.
Meanwhile, the Indaba will bring together local, regional and international stakeholders, business, national and international experts relevant to the growth of the SME sector.
It will provide a unique platform dedicated to creating awareness of the challenges faced by SME’s and provide solutions to the challenges.
The Small to Medium Enterprises and Corporative Development Minister Sithembiso Nyoni will officially open the Indaba while a key note address will be made by international keynote speaker Rajiv Chawla