Thursday, May 23, 2019

ZimConnect Module

SME Facilities


The Reserve Bank of Zimbabwe in conjunction with the Ministry of Small and Medium Enterprises and Cooperative Development have unveiled a $90 million facility for Small and Medium Enterprises. This facility comes at an opportune time for the sector as it provides the much needed injection of financial assistance. The facility is broken into the following three, which are explained in detail below. Each facility will be administered by particular banks that are listed below as well.





Lender                                     :         Reserve Bank of Zimbabwe

Disbursing Banks                        :         Agribank and CBZ

Purpose                                   :         Financing of horticultural produce

Drawdown                               :         In tranches as per borrower’s request.

Availability                                :         Upon signing of the agreement between lender  and Disbursing bank

Eligible Horticulture Farmers        :         Cut flowers

Vegetables: peas, sugar snaps, beans, onions, potatoes, carrots, cherry tomatoes, mushroom, butternuts, baby marrow, gem squash, paprika, chillies

Fruits: citrus, banana, avocado, grapes, berries (strawberry, raspberry, blueberry, blackberry etc.), passion fruit, nectarines, peaches, apples, pears, papaya, mangoes and pineapples

Nuts: macadamia, cashew, pecan, hazelnuts

Interest Rate                                      :         10% per annum

Tenor                                                :         Up to 12 months for working capital

Up to 3 years for capital expenditure

Repayment Frequency                          :         Monthly







Lender                            :         Reserve Bank of Zimbabwe

Disbursing Banks               :         Agribank and Homelink

Purpose                          :         Financing exports and imports by Cross Border members

Drawdown                      :         As per borrower’s request as approved by the                                                    Cross Border Association

Availability                       :         upon approval of projects to be funded and on travel for cross border business

Eligibility                          :       CBA members with proven bank accounts at                                                                                         Agribank

Interest Rate                            :         10% per annum

Tenor                            :         Up to 6 months for working capital

Repayment Frequency      :         Monthly


Requirement that all cross border traders open accounts with Agribank and deposit all their cash from activities in the bank. Upon application and meeting all the requirements stipulated by the Cross Border Association, members can access funding through Agribank for local production of products to be exported.


Where one intends to travel out of the country for business, the member will seek the approval of CBA after presenting their bank statements from Agribank. CBA will then advise Homelink of the members requiring funding and Homelink will avail the foreign exchange in cash or through an international card.





The Gold Support Facility was established in 2016 as a US$20 million facility to support small-scale and artisanal mining operations in order to increase gold production in the country.


Important to highlight that the small-scale gold producers accounted for 45% of the gold production in 2016. This was partly attributable to the support coming from Fidelity Printers and Refiners (FPR).


Having realised the impact of the US$20 million, the Reserve Bank increased the facility to US$40 million to further boost gold production and increase output from the 21.4 tonnes achieved in 2016 to over 25 tonnes in 2017.



Lender                                     :         Fidelity Printers and Refiners/RBZ

Purpose                                   :         Financing of gold production

Interest rate                             :         10% interest rate.

In the event of a breach, the outstanding balance to attract an interest rate of 15% per annum.

Disbursement of the loan           :       Individual borrowers: - payment direct to   suppliers of goods and services.

Companies: - funds deposited into the company account.

Eligibility for funding                  :         i) Traceable gold delivery track record to FPR or its accredited gold buying agents for a minimum period of 1 year.

ii) FPR and RBZ (and its subsidiaries) employees, their immediate family members and related parties are ineligible for the funding.

iii) Willingness to be subjected to a due diligence and commitment in writing to allow FPR employees to monitor the operation through site visits and records inspection on site from time to time.

Tenor                                     :         Up to a maximum of 3 years.


Applications are send to FPR who are responsible for the assessment of the borrower and upon satisfying their requirements, disbursements are done. Like most facilities, disbursements are done to suppliers and creditors.

Other requirements under the Gold facility can be obtained from Fidelity Printers and Refiners no.1 George Street, Msasa.




Funder                                     :         Reserve Bank of Zimbabwe

Lender/Disbursing agent             :         Commercial banks; POSB and MFIs

Purpose                                   :         Financing projects owned and managed by women

Drawdown                               :         As per approval by disbursing institution

Eligibility                                   :         Women

Interest Rate                            :         10% per annum all inclusive

Tenor                                      :         Up to a maximum tenor of 3 years


Applications under this facility should be send to participating institutions. Upon credit evaluation to the satisfaction of the disbursing institution which takes full risk of the borrower, disbursement is done. Ordinarily, disbursements to be done to suppliers and creditors.



Funder                                     :         Reserve Bank of Zimbabwe

Lender/Disbursing Banks             :         Participating banks/Agribank

Purpose                                   :         Financing value chain linkages for farmers to manufacturing entities to enhance value addition

Availability                                 :         upon approval of projects to be funded

Eligibility                                    :         Farmers requiring linkages to manufacturers                                                                

Interest Rate                             :         10% per annum

Tenor                                       :         Up to 1 year

Repayment Frequency                 :         6 months grace period to ensure harvests


The facility is targeted at availing funding for agricultural production by farmers to provide feedstock into manufacturing for value addition for export or for local consumption. Farmers will therefore be funded to produce agricultural commodities with ready markets from the manufacturers.




The Fund is administered by the Ministry through Small Enterprises Development Corporation (SEDCO). All applications should be directed to SEDCO.


Eligible Sectors

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.


2.2 OFID poverty Alleviation Project

The Ministry also secured a USD 7.2 million grant under the auspices of OFID for poverty alleviation programmes earmarked for three provinces namely, Masvingo, Matabeleland and Manicaland provinces.


2.3 Capitalisation of SMEDCO

Ministry of Finance and Economic Planning approved the capitalization of SMEDCO by issuing a USD 10 million Treasury Bill facility. In addition another parcel of TBs worth USD 5 million for SMEDCO NSSA Retrenchees facility was also extended for MSME development. The two amounts will go a long way in insuring the survival and viability of SMEDCO, whilst assisting my office to implement one of the issues raised on the development of SMEs in the Ten Point Plan.


2.4 Common Fund for Commodities

The Executive Board of the Common Fund for Commodities (CFC) approved USD 1.5 million loan to SMEDCO for the Leather Value Chain Project. A request was processed to enable the Government to issue a Government Guarantee to CFC to enable expediting of the loan facility.


2.5 Peace Building and Increased Access to Sustainable Livelihoods

In collaboration with UNDP, the Ministry implemented US$800 000 livelihoods projects in six districts of Lupane, Insiza, Umzingwane, Mberengwa, Gokwe and Binga under the “Peace Building and Increased Access to Sustainable Livelihoods” project. Support was provided in form of business management training, formation and capitalization of Savings and Credit Cooperative Societies (SACCOs), provision of start-up kits, and facilitation of access to markets. To date, the Ministry has facilitated implementation of various livelihoods projects in beekeeping, kapenta fishing, cattle fattening and other income generating projects. The provision of appropriate micro credit facilities goes a long way in ensuring sustainability and viability of the livelihood projects.


2.6 Inclusive Growth and Sustainable Livelihoods

Another US$ 5million Inclusive growth and sustainable livelihoods in four districts namely Binga, Lupane, Nkayi and Gokwe south is being implemented. Support is being provided in training and formation and capitalisation of SACCOs.