Zimbabwe: Barclays sets up $20m fund to lend to SMEs
SMEs play a key role in the Zimbabwean economy.Barclays Bank Zimbabwe has set up a $20 million (€18 million) fund to provide loans to small and medium-sized enterprises (SMEs).
"We now have a fully-fledged SME department, because with SMEs it is about reaching out to the various small industries and players where ever they are. We want to push as much as $20 million to support SMEs," the bank's commercial director Lawrence Nyazema told The Herald.
He believes that some small businesses are failing because they do not have economies of scale, which happen when unit costs fall as output rises.
"Some SMEs do not have economies of scale while bigger companies have economies of scale, which makes it difficult for some SMEs to survive," he said.
SMEs play a key role in the Zimbabwean economy, employing about 60 per cent of the country's workforce and contributing about 50 per cent of the country's Gross Domestic Product.