Small Enterprises Development Corporation (SEDCO) has moved to recover unpaid loans running into thousands of dollars extended to small, micro and medium-sized businesses by disposing several immovable properties used as collateral after the borrowers defaulted on loan repayments.
Report by Acting Business Editor The properties set to be auctioned were located in Harare, Kwekwe, Marondera, Chitungwiza and Bindura.
According to a notice published in the latest Government Gazette Darwin Properties will auction the properties on behalf of SEDCO. The auction has been slated for October 12.
SEDCO is a public enterprise established to promote and support entrepreneurial talent with a vision and prime focus to create jobs. According to information on its website since establishment, a nationwide demand for SEDCO’s business education, training and consultancy services has been observed from active and potential entrepreneurs.
“Duly instructed by the Small Enterprises Development Corporation . . . we will be offering the following immovable properties for sale by public auction to be held at Raylton Sports Club on Friday October 12,” reads part of the notice.
“The sale shall be in cash and in addition the purchaser shall pay — the auctioneer’s commission, cost of transfer including conveyancer’s charges, stamp duty and any other fees, all arrears rates, charges and any other expense necessary to complete the transfer.”
SEDCO general manager Gladys Kanyongo told a local radio station on Monday that a high default rate on loans had resulted from lack of training and misuse of funds.
She said last year’s default rate stood at 20% adding that the figure could go down to 10% this year due to intensive training programme.
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Kanyongo said the parastatal had received only $200 000 out of the $3 million allocated by Treasury.
She said to date, SEDCO had disbursed $500 000 to small-to-medium enterprises (SMEs).
The loans, according to Kanyongo, ranged from $500 to $20 000.
SMEs continue to face challenges ranging from limited access to capital, high interest rates in the money market, skills shortage and lack of proper infrastructure, among others.
