loans

‘Support us’ – MFIs urged

Young people have appealed for financial support from Micro financial Institutions (MFIs) as they are struggling with lack of capital and are besieged to enhance their businesses. This was indicated by young people who are part of the Safe and Inclusive Cities (SAIC 2.0) project, implemented by Bulawayo Vendors and Traders Association (BVTA) in partnership with Plan International, during an engagement session with MFIs. Young people revealed that MFIs should avail more funding, review their terms and diversify their loan portfolios to ensure that all young people with sound business proposals are supported financially. “Access to financial services can help ease the stresses associated with the challenges we face as young people starting from school, home, getting married and not getting jobs, said Masimba Bunu. “Building a financially inclusive ecosystem on a sustainable basis requires the involvement of a key constituency in the economy, the youth. One cannot talk of financial inclusiveness without addressing the challenge of involving the young in the discussion and practice of financial inclusion,” said Mr Brown from MoB Capital. Financial exclusion is not only a reality for most members of our society but it is especially true, that for youth, who are particularly vulnerable. During the engagement session, it was also revealed that it is important to provide youths with information on saving and opportunities to accumulate businesses. “The considered view of the organization is that MFIs should consider tailor making packages specific to young entrepreneurs,” said BVTA Executive Director Mr Michael Ndiweni.  “We want to see young men and women who are financially independent and have decent income, young people must have businesses that create employment opportunities, generate income for them and save them from engaging from harmful things, rather keeping them only busy,” Mthandazo Bhebe told The Lokshin Pulse.

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Traders commend RBZ for Collateral Registry

Bulawayo Vendors and Traders’ Association director, Mr Michael Ndiweni said this is a positive development for all workers in the informal economy. “Over time, traders have been raising concerns over stringent requirements for one to access a loan. “With this new development, it’s a step in the right direction. “It is now the duty of the RBZ and Government through the Ministry of Information to ensure that this information reaches everyone who may want to access loans.

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Gwanda Informal Traders Appeal for business loans

Informal traders in Gwanda town are calling for the introduction of emergency loan facilities to resuscitate their distressed businesses affected by COVID-19. The informal sector has not been spared from the adverse effects of the COVID-19 pandemic and resultant lockdowns. The traders have raised distress calls to the government and microfinance institutions for the provision of loans for vendors and informal traders which will boost their trade. One of the informal traders in Gwanda, Mgcini Mpofu explained that they need financial support to survive the COVID-19 crisis. The restrictions in travel and closure of borders has had a huge impact on their sales and profits. “Most of our businesses have not been able to recover from the effects of the COVID-19 pandemic. We purchase most of our supplies from South Africa and sell them locally. It hasn’t been easy to restock and the transport charges have been very high. Small flexible loans for informal traders with reasonable interest rates can help us sustain our businesses,” said Mpofu. He said these loans could be extended over a long period of time so that traders can purchase more stock and get more profits. Joacium Sibanda, another trader in Gwanda Central said small businesses are affected by transport challenges and reduced trade as a result of the COVID-19 pandemic. He said flexible loan facilities are necessary for the sector.  Last year, some vendors and informal traders received cushion funds from the government. However, the funds were reportedly insufficient considering the challenges faced by the informal sector. It is estimated that 85% of Zimbabweans rely on informal trade as a source of livelihood. If unattended to, the impact of COVID-19 on the informal sector will result in a deepening poverty crisis in the country.

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