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has come up with a facility that will enable cross-border traders to book international flights to China, Dubai and other international destinations on credit.
Speaking to Herald Business on the sidelines of the launch of the Travelex visa and Rand cards in Gweru on Friday, the cross-border association’s president, Mr Killer Zivhu, said the “fly now, pay later” facility is aimed at empowering cross-border traders who at times fail to raise enough money to book international flights to do their business.
He said the facility allows cross-border traders who have limited funds to be able to fly on credit and then pay for the fare later after selling their wares.
The facility is, however, open to members of the Cross- Borders Traders’ Association of Zimbabwe only.
“This is part of our organised business trips as an association. Previously we used to travel by road to neighbouring countries such as South Africa to do business.
“We have now realised that there is more business in China, Dubai and other Asian countries hence the need for us to go there,” Mr Zivhu said.
He added that the “fly now pay later” facility was also aimed at giving cross-border traders a competitive advantage against foreign business people who are operating in the country.
Mr Zivhu highlighted that cross-border traders face stiff pricing competition from foreign traders operating in the country.
“Most foreign traders procure their merchandise from China and Dubai and our traders normally buy from South Africa, which is a middle agent.
“What that means is, if our traders put their mark-up their prices will be higher than those of foreign traders who buy their goods straight from China, Turkey or Dubai,” he said.
Mr Zivhu said the “fly now, pay later” facility would enable local traders to procure goods from the Asian market and sell them locally at competitive prices.
He was, however, quick to point out that his association had put in place measures to ensure that their members would not default on payment on return from the international trips.
“We assess the creditworthiness of our clients before we grant them access to the facility. We look at the assets that they have and their general financial status and use that as assurance that they will be able to pay for the services rendered,” said Mr Zivhu.
“After assessing the creditworthiness of the applicant we then liaise with our travel agency so that they book our members on any airline,” he added.
His association was working flat out to ensure that the capacity of cross-border traders is increased.
A number of programmes were on the cards with some having been launched already in an endeavour to empower cross-border traders.
One of the products the association has launched so far is the Rand card which enables cross-border traders to conduct electronic transactions in South Africa without carrying around huge sums of money.
The Rand card was launched in conjunction with a local financial institution, Interfin Bank.
Under this facility traders are required to open bank accounts with Interfin Bank in which they can deposit money and top up credit on their cards whenever they intend to travel to South Africa on business.
Another such facility available to cross-border traders through the same bank is the Travelex visa card which allows traders to access their money anywhere in the world.
The Cross-Border Traders Association of Zimbabwe has launched the Travelex visa and Rand card in Bulawayo and Gweru, and will be in Masvingo today on a similar project.
The national launch of the two products will be held in Harare in a month’s time.