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Herald Correspondent
After struggling for a long time to get initial capital for a couple of income generating projects he wanted to embark on, Munashe Musumare was at a loss for what he could do next.

As a civil servant he was grateful that the Government, as his employer, had been incrementally reviewing his salary as and when funds permitted.

However, he also needed a faster and quicker injection of income to launch some projects in order to improve his livelihood.

“I had been on the market for some time looking for a source of capital injection to start income generating projects,” Musumare said.

“But it was difficult. The most daunting thing was the interest rates. Most lenders were asking for between 25 percent and 35 percent interest rate, and borrowing period being only one year.

“This proved to be tricky for me, and I feared not being able to then get out of such expensive loans if I took them up.”

As he looked around for more alternatives, Musumare was overjoyed when his employer, the Government, provided just the solution he had been hunting.

“The assistance and cushioning I needed came from my employer,” Musumare said.

The Government Employees Mutual Savings (GEMS) Fund, which was introduced last year, and started inviting loan applications in May this year, became just what he needed.

“I was able to secure a loan of $250 000 in May, and this was just what my family and I needed,” said the 27-year-old.

Together with his mother and spouse, Musumare immediately used the money to launch a poultry project and a commodity broking project; buying and selling soft furnishings for the home such as carpets, duvets and other types of bedding.

“Today our projects are up and running. This is one source of capital I can recommend to other civil servants without hesitation.

“It is a true and real source of borrowing with comfortable repayments,” Musumare said.

His loan came at a 10 percent interest rate per annum, and the tenure is three years.

“I am glad I took the opportunity to borrow from a trusted source.”

Musumare is not alone in this experience.

Chenai Mutumha (31) knows exactly what Musumare is talking about.

She is another civil servant who has benefited from the GEMS Fund. A nurse in Harare, Mutumha had been struggling to find money to pay her child’s external examination fees for a course.

“I had been worrying about where to get that money, when one day, in the ward I was working, I heard another nurse talking about GEMS.

“I then decided to apply right away,” Mutumha said.

She successfully applied for a loan of $244 000.

“I was able to quickly pay the examination fees, and even buy some furniture for home improvement,” said Mutumha.

She added that were it not for the loan, she would not have been able to pay her child’s examination fees.

“Where else would I have gotten such an affordable loan? This loan is ‘workable’,” said Mutumha.

Mutumha and Musumare are only two of thousands of civil servants, who have benefited, and continue to benefit from the GEMS Fund.

To date, the Fund has successfully processed 10 400 loan applications worth $855 104 463.

As a new facility, GEMS is doing all it can to meet the overwhelming demand from thousands of Government employees, who appreciate how this non-monetary benefit helps in cushioning them from economic challenges. It also helps in improving their livelihoods without them having to rely only on salaries.

“Due to the enthusiastic response, disbursements are being managed to ensure that a significant number of applicants receive their loans every month,” Secretary to Service Commissions, Ambassador Jonathan Wutawunashe said.

“Applicants who are members of GEMS, and are yet to receive loan amounts, should, therefore, not despair as the savings scheme, which is based on a combination of monthly contributions and monthly repayments by those who have already drawn loans, is designed to ensure that all contributing members benefit.”

Ambassador Wutawunashe indicated that the Government recently injected “significant amounts”, as a bridging measure, to allow the member-financed fund time to grow to independently support the demands of members.

In fact, the Fund goes beyond providing loans to members. The principal purpose it was created is to mobilise mutual savings for civil servants for their direct financial benefit during the tenure of their employment and post retirement.

To this end, members of the Fund contribute 2,5 percent of their basic salary monthly. Loan amounts will depend on ability to repay within stipulated time horizons.

The facility is being operated in order to achieve objectives elaborated below:

1. a) receive monthly contributions from members as a form of savings, made via direct deductions from their salaries, or other forms of payment;
2. b) provide financial assistance to members in the form of loans, or similar instruments; and
3. c) operate, manage, or administer any service which is conducive to the provision of financial security to members.

The Public Service Commission says all applications received are being  processed on a continuous basis. All applications will be finalised in due course as revenue streams continue to build funding capacity.

Civil servants interested on the GEMS Fund can call 242 70081-3, or visit any PSC office closest to them, or any National Building Society branch nationwide.