There is $1.6 billion per province through SEDCO for loans to youth projects.

How do we ensure the Mat'land allocation benefits Mthwakazians. You know it can all be taken by the same people from other areas who then go to develop there home areas while Mthwakazi legs behind.

Thina sezavungama ngokuthi why odade bekhomba abetshabi. Nxa behamba ngezimota lina ngenyawo, vele "akula fokolo engala athi".

Lets go for this money and put our projects forward and if we don't get the money lets find out who did and cause a public outcry if it shows the Grand Plan is in force. Lani abangaphandle ncedani abangaphakathi about what projects to do.

Is dat in Z$ and for whole of Matebeland provinces sir?

Itholakala ngaphileyo mali Hitshi Hitshi?

FYI Abaseguswini Ncedani abasekhaya.

$16 BILLION SMALL TO MEDIUM ENTERPRISES (SMEs) REVOLVING FUND




OPERATIONAL GUIDELINES AND DISBURSEMENT MODALITIES




11 SEPTEMBER 2006

1.0 INTRODUCTION

1.1 In line with the Mid-Term Monetary Policy Statement announced on 31 July 2006, the Reserve Bank of Zimbabwe put in place a $16 billion Small to Medium Enterprises (SMEs) Revolving Fund.

1.2 Funds will be made available for on-lending through banks, Small Enterprise Development Corporation (SEDCO), selected Micro Finance Institutions (MFIs) and People’s Own Savings Bank (POSB) at a concessional maximum all-inclusive interest rate of 70% per annum.

2.0 OBJECTIVES OF THE FACILITY

2.1 The key objectives of the facility are as follows:-
i. Improved access to finance by SMEs;
ii. Employment creation through increased support and development of entrepreneurial capabilities;
iii. Income generation, resulting in improved standards of living and poverty reduction;
iv. Foreign exchange savings through harnessing of local resource endowments; and
v. Enhanced economic growth.
3.0 PURPOSE OF FACILITY

3.1 The facility is specifically meant to support working capital and capital expenditure requirements of SMEs.

3.2 Focus is on primary production, value addition, export oriented projects and projects with a quick turn around. Non-productive activities such as importing/buying and trading will not be prioritized.

4.0 ELIGIBILITY

4.1 For purposes of this facility, SMEs with the following characteristics are eligible for funding:-

i. Formally registered under the Companies Act, Private Business Corporation Act or by a Local Authority. SMEs not formally registered but operating from registered premises are also eligible for funding. This includes SMEs operating from premises authorized by Rural District Councils/Chiefs/Headmen;
ii. Employs not more than 50 permanent employees;
iii. Is not part of a large enterprise, i.e. not a subsidiary of a large corporation; and
iv. Must meet all Local Authority requirements.

5.0 NON –ELIGIBILITY

5.1 The following are not eligible for funding under the facility:-

i. Refinancing of existing debt;
ii. Defaulters and/or non-performers under previous concessional facilities;
iii. Acquisition of real estate, shares, companies/businesses;
iv. SMEs currently benefiting under other Government facilities put in place to support distressed companies and/or SMEs; and
v. Tourism Sector.

6.0 TARGET SECTORS

6.1 Examples of projects which can be financed are as follows;
• Food Processing
• Bakery and Confectionery Manufacturing
• Toiletry Making
• Textile and Garment Production
• Leather and Rubber Production
• Foundry & Metal Fabrication
• Construction
• Wood Processing and Furniture Manufacturing
• Small Scale Mining
• Engineering
• Art and Sculptor
• Transport

7.0 TARGET BENEFICIARIES

7.1 The facility will target entities such as sole traders, cooperatives, private companies, partnerships, etc.

Graduates
7.2 Graduates from vocational training institutions and technical colleges who have acquired technical expertise/skills are encouraged to apply for funding, provided they meet the eligibility criteria.

Corporates
7.3 Large corporates are encouraged to develop policies that promote synergies with SMEs e.g. where an SME has direct forward integration with a corporate for the supply of raw materials, funds can be made available to the SME with the corporate guaranteeing the loan.

7.4 The Reserve Bank will allow for a reduction in foreign exchange surrender levels for export-oriented corporates with linkages to SMEs e.g. where a corporate outsources some of its activities from SMEs.

Group Lending
7.5 A number of individuals can come together and access individual loans for different projects in order to address the challenge of inadequate collateral/security.

7.6 Each group member will co-guarantee loans accessed by group members, in line with the group’s Constitution.

Small Scale Exporters
7.7 Small scale exporters are required to submit confirmed export orders and Form CD1s for pre and post shipment finance, respectively.




8.0 PROJECT LOCATION

8.1 The facility will support SMEs in Growth Points, Rural and Urban Areas.

8.2 To ensure that all provinces benefit from this facility, in line with the allocations announced in the Monetary Policy Statement, beneficiaries are required to indicate the physical location of the project when applying for funds.

9.0 QUALIFICATION CRITERIA FOR PARTICIPATING MFIs

9.1 The following qualification criteria will be used to select MFIs that can access the facility for on-lending to SMEs:-
i. Registered and supervised by the Reserve Bank;
ii. Skills and capacity to administer loans to low income and marginalized group;
iii. Credentials of principals and management of the MFI;
iv. Branch network and representation in both rural and urban areas;
v. Status of current loan book; and
vi. Risk management systems.

10.0 TERMS AND CONDITIONS

10.1 Funds should be for immediate use; borrowing of funds for speculative purposes is not permissible under the facility.

10.2 Multiple loans through different lending institutions for the same project/activity are not permissible.

11.0 LOAN SIZE

11.1 The maximum loan size for each project will be $5 million.

12.0 CURRENCY OF LOANS

12.1 All disbursement and repayments will be made in Zimbabwe Dollars.

12.2 Where foreign currency is required, the application will be processed, however, funds will only be disbursed by Reserve Bank upon the borrower securing foreign currency through official channels


13.0 BORROWING LIMIT

13.1 There is no limit on the amount which can be accessed by each lending institution, provided previous draw downs take into account provincial allocations indicated in the Mid-Term Monetary Policy Statement and that the institution has met all other terms and conditions of the facility.

14.0 INTEREST RATE

14.1 Loans will attract an all-inclusive interest rate of 70% per annum, computed on a simple interest basis.

%0

What is 4 billion Zim Kwacha to the nation that has been starved from developement for decades,that is an insult to the people of Mthwakazi,thats taking us for fools,do they really think they can win pple over by giving that sick money,Plizzz they should clear off with their toilet tissue

Madoda,

If this is our attitude towards anything in this country, then its realy sad. This attitude says don't do anything just wait for independence. Leyo independence izafica selisenyanyeka ngobuyanga.

You must also know that if you have no means of production, no money, you cannot wage a struggle let alone campaign for your "idea" no matter how plausible, even if the playing field is tilted in your favour.

In other words you are saying yekelani bazidlele imali yabo, which they will do. They will be driving around in posh cars in your town, drinking this same money in your night clubs which they already own, bakhombise adadewenu labantwabenu ntando futhi bakhonjwe and akula fokolo ongayenza, while you sit behind a computer and complain.

Nxa iphiwa abanye lathi asiyidleni. We all pay these taxes, and we all will repay the deficit created by this government and any of its problems we shall pay for. You with nothing and them from what they saved from this money.

Liyangicaphula mina. Asiwo magundwane lawa, yimali.