THE National Social Securities (NSSA) says it will continue to support its sub bank National Building Society (NBS) as they embark on the journey to uplift the small and medium enterprises (SMEs) which are often excluded in the financial inclusion movement, with a cushion of US$1 million funding from NBS to SMEs to elevate the sector.
According to the latest statistics from Reserve Bank of Zimbabwe, MSMEs contributes more than 60% of the country’s gross domestic product.
Speaking during the SME fund launch yesterday, NSSA acting general manager Charles Shava said they were committed to funding SMEs through NBS.
“NSSA has taken a deliberate decision to fund SMEs through NBS in perpetuity, demonstrating our unwavering commitment to empower and capacitate NBS. In the same breathe, we invite all SMEs to register with NSSA, enabling access to financial facilities and enrolling in the mainstream banking system with NBS, which is essential for gaining financial capacitation,” Shava said.
“Today marks a significant milestone as we gather to launch the SME Fund, a pivotal initiative that underscores our commitment to empowering small and medium enterprises (SMEs) in Zimbabwe. This fund is not merely a financial vehicle, it represents a profound promise to uplift our SMEs, the underserved communities and to strengthen the backbone of our economy.”
NBS managing director Sifiso Mahlangu said through its parent company NSSA, they had received US$1 million to fund the SMEs sector.
“So as you have heard, we are going to be starting with US$1 million, which is revolving. I know that our parent company, NSSA, is a parent who is always having their ear to the ground, who is always very concerned about the things that affect their child’s business. I can tell you that before the end of the middle of next year, we will probably be looking at the funds going to somewhere like US$2 million to US$3 million,” Mahlangu said.
“We aim to promote financial inclusion. We aim to encourage growth of informal and SME sector business into big corporations and, of course, provide accessible funding solutions to the vast range of businesses, specifically those in the absent communities. I urge all SMEs, both banked and unbanked, to reach out to us so that they can get access to this equitable opportunity and become part of the mainstream banking system.”
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Mahlangu said the biggest challenge affecting their incorporation of SMEs was funding, hence they approached NSSA for funds, adding that they presented their case to the social security authority and were heard.
During testimonies, some SMEs expressed their heartfelt gratitude from the service they got from NBS and urged other small business to utilise the opportunity available with NBS.
“When you are a client with ZiG2 000 in your account, you are not like a very important client, but NBS make you special. I really appreciate the journey that I have walked with NBS. They have helped me to formalise my business to a point where they hold me accountable to say, Lorraine, we want your audited financials, and I give them,” said SLS director Shingirai Lorraine Soko.
“I feel empowered today, and we thank you for the invite. I started my business in 2012, as a small enterprise operating from home. NBS has helped us, has formalised our business. We are now registered with NSSA.
“We also now produce audited financial statements, and I can say through their financial help, we’ve grown from grassroots to full-scale production. We manufacture detergents.”
