Maravi

(TALKZIMBABWE) Relax collateral policies on lending: analysts

Relax collateral policies on lending: analysts
By Professor Tshuma at October 5, 2012 | 4:01 PM

CALLS have been made by economic and business analysts for the relaxation of collateral policies on lending of money so that the major sectors that drive local economy can be revived.

Renowned economic analyst and President of Great Africa, Mr. Rutendo Rutendo said the low economic growth being experienced by the country was a cause for concern which needed emergency attention.

He said the Small to Medium Enterprises (SMEs) should be fully funded and there was need to come up with SMEs fund or bank which will solely concentrate on bailing out the sector as it has proved to be a major contributor to the economy.

He said his organization, Great Africa, was calling for a shift in approach so as to witness meaningful growth.

The country is experiencing a low economic growth is a cause for concern and as Great Africa, we are calling for a shift in the approach if we are to witness any meaningful growth going forward,” he said.

“The engine of the economy which is the SMEs, has been relegated to the bottom of the pyramid yet they are the ones oiling the engine of this economy.”

He said it was uncontestable to argue against the point of view that majority of Zimbabweans are running SMEs and in light of this, it was prudent to channel resources towards the upliftment of SMEs.

Mr. Rutendo said SMEs were the major employers in the country and there was need to give priority to them so as to stimulate growth.

He also called for a deliberate policy to empower the SMEs if the nation is to achieve a double digit growth rate.

“There has to be a deliberate policy to empower SMES if this nation is to achieve double digit growth.”

He said financial institutions were tabling stringent lending policies which require collateral, adding that this was mitigatory to the success of SMEs.

“Financial institutions have also made it difficult for SMES to access funding.

“The stringent lending policies which require collateral are mitigatory to the success of SMEs and it is high time

Government chip in and guarantee viable SME projects as the majority of these entrepreneurs have no access to immovable property.”

He further on said it was absurd for anyone not to take seriously the contribution of SMEs to the Gross Domestic Product.

Labels: BANKING, RUTENDO RUTENDO, SMEs

posted by MrK @ 4:16 PM