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CBZ Holdings to launch SMEs pension fund

23 Mar, 2017 - 00:03 0 Views
CBZ Holdings to launch SMEs pension fund

The Herald

CBZ has been at the forefront of SMEs development

CBZ has been at the forefront of SMEs development

Business Editor
Zimbabwe Stock Exchange-listed CBZ Holdings is set to establish a pension fund for small to medium enterprises to be underwritten by its Life business.

CBZ Holdings chief executive Never Nyemudzo told media at the SME’s International Indaba in Bulawayo yesterday that the product comes out of the group’s need to include small business within the financial services system.

“This is a game changing umbrella pension scheme developed by CBZ Life to enable SMEs to secure their life after retirement.

“We introduced what we call the ‘Keyman Insurance’. This insurance comes in different forms where in the case that the Keyman or the person who started the business dies or gets injured or disabled then business gets a sum.

“Then the other part of the insurance is that at some point you will have to retire and in that case you will definitely need a pension,” said Mr Nyemudzo.

He said the financial services group is currently engaging the regulator, the Insurance and Pension Commission in finding ways to improve the product.

The financial services group has been at the forefront of SMEs development offering financial support and services to the formerly marginalised smaller businesses in the country.

This has seen the company extending in excess of $150 million in loans towards the development of several small to medium enterprise projects since dollarisation.

Mr Nyemudzo said the financial services group has managed to find ways to deal with security for the loans.

He said there was an insurance product to deal with the issue of security and such an initiative has a long way in assisting SMEs in processing loans in banks.

“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 in the middle of loan tenure,” he said.

The CBZ Holdings SMEs International Indaba is being facilitated in partnership with the Embassy of India and I AM SME of India

Indian Ambassador to Zimbabwe Rungsung Masakui said there is a huge opportunity for SME development in Zimbabwe and what is only needed are strong partnerships going forward.

“Indian SME’s are here looking to strike joint ventures and partnerships. It is only through partnerships that we can achieve great things,” said Ambassador Masakui.

“I was telling Mr Rajiv Chawla, the head of delegation for the Indian small businesses to come and strike partnerships with local companies in Zimbabwe.

“There is a huge appetite by local business people to strike partnerships with us. We would want to see more business partnerships happening going forward,” he said.

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