Published: 03 February 2014

The RBZ has urged financial institutions to provide cheap lines of credit to Small and Medium Enterprises (SMEs) in order to aid their growth.

The SMEs sector has been struggling to take off as it faces a number of challenges such as a lack of funding and collateral to borrow from banks, high interest rates and limited working space.

"The de-industrialisation of the economy has given rise to the influx of SMEs in the manufacturing sector which requires financial and technical support. The same holds for other SMEs in the various sectors of the economy. We encourage financial institutions and other stakeholders to increase their support to the SMEs sector," she said.

Dr Dhliwayo pointed out that the central bank would ensure that developmental institutions are adequately capacitated so that they can provide support to the SMEs sector.

"We urge development partners and financial institutions to facilitate the provision of appropriate and affordable credit to SMEs through the establishment of soft funding schemes. The schemes should incorporate a capacity building component," she added.
- sundaymail

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