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Minister Nyoni

Steward Bank, a subsidiary of mobile telecommunications firm Econet Wireless on Tuesday launched a facility under which it will provide financial assistance to small and medium scale enterprises (SMEs).

Under the facility, dubbed the “Revamped SME Account,” the financial institution will avail funding and capacity building programmes such as financial literacy to support growth of a sector that has become a corner stone of the Zimbabwean economy.

The initiative would also provide free marketing for SME products through the Econet Wirelesses e-commerce platform called Ownai, formerly known as Tengai.

Small and Medium Scale Enterprises and Co-operative Development Minister Sithembiso Nyoni lauded the initiative, which she said would allow the sector to create more jobs and grow sustainably.

“Access to affordable finance by SMEs is necessary to create a conducive economic environment for growth and prosperity of these firms,” she said.

Minister Nyoni said limited access to affordable finance, lack of adequate business skills, poor business management were among the major challenges facing the small enterprises sector.

The last survey conducted in the sector in 2012 showed that it employed 5,7 million people, close to half of the country’s over 13 million people.

Minister Nyoni urged other players in the financial sector to come up with attractive products for SMES, most of which remained unbanked.

“The sector has lost confidence with banks due to lack of attractive products that could lure the sector to open accounts with them,” she said.

“Tapping into the sector will ensure that money circulates in the formal economy.”

She urged small business operators to take advantage of initiatives such as the “Revamped SME Account” to grow their businesses. – New Ziana.