Speaking in this regard yesterday, Central Bank Governor, John Mangudya, affirmed that this move would aid economic growth. He added that the bank policy rate at 40% and the interest rate on the Medium Term Accommodation Facility (MBA) at 30% per annum will be maintained.

In addition to the above, Mangudya gave the following statement:

“(The RBZ) approved a facility of ZW$500 million for term finance for micro, small and medium enterprises which the MSMEs will access from banks and micro-finance institutions at 30% per annum for purposes of enhancing production and productivity across all the sectors of the economy; and reaffirmed its position to support bureaux de change with foreign exchange requirements to support MSMEs which need foreign currency for their various productive requirements,”

The Governor reiterated the stand point of the Monetary Policy Committee (MPC) brought up at a meeting held last week. They were pleased with the reduction of the inflation rate from 240, 1% in March 2021 to 194% in April 2021. As a result the MPC expressed their commitment to working to sustain this dis-inflationary path.

This loan facility will be accessed through various  financial institutions.

What are your thoughts?

Let us know in the comment section below.

The post Good news for Small to Medium Enterprises as RBZ approves $500 million loan facility appeared first on Provoker Magazine.

One of the most focal suggestions being considered is that government should acquire at least 25% of goods and services from local SMEs. A provision for this is already available within the SME policy, however, it is missing from the Public Procurement and Disposal of Public Assets (PPDPA) Act. This highlights the need for an alignment of the policies as suggested by the SME Association of Zimbabwe.

PRAZ acting chief executive, Mr Clever Ruswa had the following to say with regards to these proposals:

“The authority will be incorporating these amendments as inclusion of SMEs fosters competition by helping more firms to enter the market and helping to grow the market and push innovation”

Among the aforementioned proposals, there have also been others to align the law and the local content strategy to promote acquisition of most goods from local companies. Ruswa commented that the implementation of such propositions will aid in the attainment of better value for money by creating more suppliers which in turn leads to more competition resulting in SME stimulating local benefits.

Other proposals were minor, including the deletion or replacements of some clause or sections.

In working together for the betterment of the economy, the Ministry of Industry and Commerce implemented a Local content Strategy that seeks to ensure that by 2023 local content levels have increased from 20% to 80%. Within this strategy, preference is given to local manufactures over any importers.

PRAZ has met with players in sectors including insurance, health, motor industry, women, youth, sports, art, Information Communication and Technology, tourism and hospitality among others in a bid to facilitate these changes and get further insight from stakeholders.

What are your thoughts on this matter?

Let us know in the comment section.

The post Government considers acquiring goods and services from local SMEs appeared first on Provoker Magazine.