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The Bulawayo Upcoming Traders’ Association secretary-general Dumisani Ncube addresses vendors at Lobengula mall on Tuesday

Rejoice Mberengwa Business Reporter
THE Arab Bank has availed $3 million to the Small Enterprises Development Corporation (Sedco) to finance projects in the informal economy. Under the facility, owners of small businesses will access a minimum of $5,000 and a maximum of $150,000 loans depending on collateral.

Those who own properties such as houses stand a better chance of getting funding.

Dumisani Ncube, the secretary general for Bulawayo Upcoming Traders’ Association (Buta) told a gathering of informal traders in Bulawayo on Tuesday that the funds were available and urged those who were interested to apply.

“This money is for you to grow your business and contribute to the productive capacity of the country and uplift the economy,” said Ncube.

“For individual loans, the minimum amount will be $5,000 with the maximum being $150,000. Interest will be 10 percent of the remaining balance per year.”

He urged traders to pay back the money unlike the previous experience where the government had to chip in with $500 that beneficiaries did not return.

“Because of the previous experience where most of you didn’t pay back the money, this time its borrowed money and the government has introduced the issue of collateral in the form of houses and property,” Ncube said.

“The minister (Sithembiso Nyoni) said she was aware that people from Bulawayo have been complaining that they are being marginalised. This is a chance for you to prove yourselves in business.”

He said 3,000 Sedco members had been registered and were being assisted to ensure they met the requirements for funding.

“There are people who are already in business and have bankable business plans or proposals with cashflow projections for 12-24 months. We’ve registered 3,000 so that they can apply,” said Ncube.

The informal economy is the fastest growing sector in the country with estimates showing that close to $5 billion is circulating in the sector.

Small to Medium Enterprises and Cooperative Development Minister Sithembiso Nyoni has been advocating for increased support for SMEs and their formalisation to increase their contribution to the mainstream economy.