Zimbabwe to host first MSME banking summit in July 2013
Zimbabwe will host on July 17th its first micro-small and medium enterprise (MSME) banking and microfinance summit, which aims to find new ways to boost small businesses' development.Although MSMEs in Zimbabwe significantly contribute to the nation's economy, their potential for growth is stifled by difficulties
finance, said one of the event
Nicky Moyo, quoted by The Herald.
MSMES constitute around 90 percent of all companies in Zimbabwe and are credited with generating the highest rates of employment growth.
However, in Africa and Zimbabwe, these enterprises' contribution to GDP is significantly lower than anywhere else in the world: while they contribute to up to 50 percent of GDP in industrialised nations, the percentage in Africa remains below 10 percent.
One of the main reasons is that these companies often struggle to access credit, mainly because banks often lack credit information on small companies and ask for several guarantees that MSMEs struggle to provide.
"Lowering these barriers to access and offering suitable financial products can allow households and small businesses to maximise the leverage of their savings or earnings for increased productivity, contributing to higher incomes, job creation and, ultimately, growth," said Mr Moyo.