1. Small and Medium Enterprises Revolving Fund
The Fund is administered by the Ministry through Small Enterprises Development Corporation (SEDCO). All applications should be directed to SEDCO.
All sectors are eligible to apply for the Fund.
Terms and Conditions
Micro Portfolio Loans ($500 and less)
- Non-refundable application fee of $20.
- Interest rate is 15% per annum with loan tenure of 4 months;
- Collateral is movable property.
Loan threshold of $501- $5 000
- A non-refundable application fee of $30;
- Interest rate is 15% percent per annum with a loan tenure of 6 months;
- Collateral Security for $501 - $1000 - a vehicle.
- $1000 to $5000 -Title Deeds or Cession of lease over an immovable property
How to Access the Fund
The prospective client should produce a business plan or proposal, which is comprehensive and visit any SEDCO branch countrywide.
For more information contactSmall Enterprises Development Corporation (SEDCO)Head Office: SEDCO House170 Chinhoyi StreetP.O Box 4520, Harare
2. Financial Institutions
SMEs can also approach the following financial institutions below and any other financial institution with a special window for SMEs:
2.1 Infrastructure Development Bank of Zimbabwe (IDBZ)
US $30m SME Loan Facility
Contact Details:IDBZ 99 Rotten RowHarareTel: (04) 779004/10Website: www.idbz.co.zw
2.2 Commercial Bank of Zimbabwe USD 5 million
Contact Details:CBZ Bank Union House60 Kwame Nkrumah AvenueHarareTel: (04) 748050/79Website: www.cbzbank.co.zw
2.3 Central African Building Society
Contact Details: CABSCentral AvenueCnr Fourth Street/Central AvenueTel: (04) 252861-7Website: www.cabs.co.zw
WHAT IS A BANKABLE PROJECT PROPOSAL
Project Proposal Guideline
To introduce your business and your intended business activities. It may include the following:
- Name of the business;
- Type of ownership (e.g. sole proprietorship, partnership, co-operative, or company;
- Location and principal activities;
- Expected major achievements
To give a quick overview of what is contained in the business plan.
a) Nature and Background of Business
- Name and type of ownership;
- Major investors and management;
- Principal activities;
- Overall marketing strategy;
- Production capacity.
d) Expected Annual Financial Results
- Cash levels
3.Overview Of Industry, Market, Product/Service And Business
To provide the data needs of the business and the quantitative base for the market information upon which the planner will develop business strategies and sales forecasts
a) Industry Analysis
- Name of industry segment that your business will go into;
- Size and growth patterns of segment e.g. units produced/sales per annum;
- Characteristics (competitive forces, capital labour requirements).
b) Products/Service of your business
- Name and describe the product/service
- State competitive of your product or service
c) Nature of Business
- Name investors and the amounts to be invested;
- Brief history of the business in terms of past achievements in assets, annual sales/profits;
- Or forecasts if proposal is foe new business.
d) Market Analysis
i) Target Market Area
- State area in which your product/service will be sold;
- Size of target market area (i.e. amount of product/services needed to satisfy demand in target area e.g. annual unit consumption or sales;
- Growth /decline trends of your target market;
- Estimated annual sales i.e. your market share (your forecast annual sales as a percentage of total demand in the target market area).
ii) Customer Profile
- Your potential customers within the target market area (individuals, organisations and institutions);
- Consumption/buying patterns (how often and how much they buy the product/service);
- Name (at least 3) major competitors supplying/servicing your target market;
- Competitors size, strength and weaknesses;
- Your business competitive advantages.
BE ADVISED: if you cannot sell it don’t make it!
4. Strategy Formulation
To decide on how the business will operate to be able to sell profitably within the market and industry.
a) Marketing Strategies
i) Advertising and Promotion
- Advertising media;
- Other promotional activities;
- Frequency and monthly cost of advertising and promotion
- Product/service prices;
- Average product/service mark-up;
- Pricing considerations e.g. cost, competitors prices, target customers, product quality etc.
iii) Methods of Selling and Distribution
- Ways of supplying e.g. counter sales, in-house sales, sales agents, etc.
iv) Selling Terms
- Cash and discounts;
- Credit sales, credit limit, credit period, etc;
- Guarantees and conditions of guarantees;
- Packaging and after sales service.
b) Operations and Production Strategies
i) Premises and Facilities
- Size of premises needed;
- Facilities, (water, power, storage, etc);
- State whether premises will be rented, leased or owned.
ii)Machinery/Equipment and Raw Material (Stock) Requirements
- Machines, tools, motor vehicles, furniture and fittings and sources of supply;
- Raw material/stock requirements and sources of supply.
- Production stages
- Production capacity (i.e. output per given time).
c) Organisational Strategies
i) Key Personnel (Management)
- Key operational staff;
- Job functions and descriptions;
- Ownership in the business;
- Compensation (salaries, benefits, etc)
ii) Staffing Plan
- Job functions/titles;
- Number of people per job within the next 3 years;
- Salaries/wages offered per job;
- Conditions of service.
iii) Management Assistance and Staff Training
- Training for management in relation to weakness areas;
- Training plans for other staff;
- Training institutions to be used for staff training.
iv) Supporting Professional Services
- Professional services required by the business, i.e. essential services but not required on regular basis and sometimes your business cannot afford to employ a full time person e.g. accounting;
- Organisations that will provide the service and annual cost of these services.
v) Action Plan
- Three year plans stating main goals to be achieved such as annual sales/profit. Forecasts and major capital acquisitions or intended expansions;
- Detailed outline steps to be taken to achieve year 1 goals;
- Threats to business’ success and plans to overcome them.
To forecast the results that are expected in the strategy formulation section and to outline the investment to be made to achieve the results
a) Start-Up Costs
- Details and cost of initial business requirements. (These include assets that are already available. If you intend to import, the costs should include freight and clearance charges);
- Start-up costs include: Land, buildings, machinery, equipment, vehicles, stock (materials/finished goods), working capital,
b)Sources of Finance
- Equity – what owners will contribute including any assets already owned and intended for use in the new business;
- Loan required i.e. total start-up requirements less total equity provided, repayment period in years, and expected interest rate %.
c) Sales Forecasts
- Monthly breakdown of annual forecast sales taking into account seasonal variations;
- Seasonal variations;
- Total annual sales.
d) Profit and loss Forecast
This is a statement which compares revenue generated from the sale of goods in the business’s usual line or service provided, with regular expenses incurred in the day to day running of the business to find out how much profit and loss has been made.
A detailed proforma profit and loss statement showing sales and operating expenses month by month will be required for year one and on a quarterly basis for years two and three.
Cash flow Budget
This is a detailed forecast of the business cash position at given point in time, showing sources and amounts of cash to be received (inflows) and intended payments (outflows) and forecast cash balances at the end of every period. Details of inflows and outflows will be shown month for year one and then quarterly for years two and three forecasts.
A balance sheet is a classified statement showing business’ assets (what the business owns) and its liabilities (what it owes). It is intended to show a venture’s financial positions at a point in time. A forecast balance sheet must therefore show the following;
- Fixed assets
- Current assets
- Current liabilities
- Working capital
- Net Asset Value
- Owners Capital
- Long terms loans
- Total Capital employed
e) Explanations to Projections
This explains the basis for years 2 and 3 forecasts