Sources of funding for SMEs in Zimbabwe

While the specific sources of SME funding come and go, this article seems to keep the micro-institutions and SMEs aware of the antecedent institutions which are assisting funding for working capital and venture capital. The specific terms and conditions for such loans may be obtained from the institutions. I shall try to keep this page updated each time I get new information so the contents of this page do not become outdated. Here are some of the institutions who offer funding to SMEs and micro-institutions;

(a) Micro Finance

Many institutions support micro-institutions (e.g. cross borders traders & vendors etc), SMEs and groups with working capital and order finance for exports. The loans are secured by way of a pledge over business & household assets plus a guarantor. The tenor of the loans ranges from a minimum of 2 months for order/retail finance to a maximum of 6 for manufacturing and agriculture business. The qualifying businesses should be at least one year old (proven business record) – i.e. usually no venture capital is provided.

(b) Reserve Bank Funded Revolving Facilities

Through registered commercial banks and other finance institutions like Homelink, the Reserve Bank instituted some revolving facilities with an aim of providing pre- and post shipment export finance at reasonable interest rates.These revolving facilities include: -

• Gold Development Facility US$40 million;
• Horticulture Facility, US$10 million;
• Business Linkages Facility US$10 million;
• Cross Border Facility US$15 million;
• Women Empowerment Fund, US$15 million;
• Export Finance Facility, US$50 million;
• Tourism Support Facility, US$15 million;