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Michael Tome/Hilda Muchamiri Business Reporters
DEVELOPMENT finance institution, Trade and Development Bank (TDB) has launched a pilot $3 million Small to Medium Enterprises (SME) programme in partnership with Untu Capital, a local micro finance institution.

The arrangement is a blended finance and business support programme aiming to support SMEs in their quest to get access to finance and capacity building.

It is a two-year pilot programme, valued at $3 million, meant to build financial model that is blended with financial support to reach out and impact SMEs in six countries. The pilot programme will be demand driven.

This SMEs pilot project has started in Zimbabwe and is going to spread to other eastern and southern parts of Africa.

TDB senior investment manager, Andrew Bamugye said the pilot programme chose to work with Untu Capital as it is an established  Zimbabwean company that already knows the local business terrain and has a wider reach.

“We are going to implement using intermediaries who understand the intricacies of the SME sector in the particular markets, because we are a pilot and very limited on staff.

“We are testing particular intermediaries hence we have partnered Untu Capital, (and) that can help us scale fast, prove a point, prove a pilot and leverage funding for more people so that we can extend to more SMES,” said Mr Bamugye.

Commenting on the sidelines of the event Zimtrade chief executive officer Allan Majuru lauded the gesture, saying it came at a critical time when Zimbabwe is looking at ways to revamp the export market through capacitation of SMEs.

“Assisting SMEs’ access to finance is quite commendable, most importantly for ZimTrade is the trade finance as it capacitates our SMEs so that they are export ready and also to have enough money and finance and have enough throughput to take to the market.

“The programme is looking at a number of initiatives to capacitate SMEs so that they make product(s) ready locally and for export,” said Mr Majuru.

Represented by Mr David Nyakonde, Women’s Affairs, Community Small and Medium Enterprise Development Permanent Secretary, Ambassador Rudo Chitiga, mentioned the contributions made by SMEs to the nation which includes economic growth, employment creation and poverty alleviation.

She commended the Government for setting up a ministry to represent the SMEs.

Challenges faced by SMEs include lack of access to finance and capital infrastructure, access to modern technology among other things and this MOU will go a long way in enhancing financial inclusion for the sector, said Ambassador Chitiga.