GOVERNMENT said it will bend over to save MicroKing Finance from collapse as the microfinance company had received $800 000 from the United Kingdom Department of International Development (DFID) to assist small to medium enterprises.
BY VICTORIA MTOMBA
MicroKing is a sister company to AfrAsia Bank Zimbabwe which had its licence cancelled recently due to undercapitalisation and liquidity.
Speaking at a Press conference on Wednesday, Finance minister Patrick Chinamasa said the DFID has investments in MicroKing amounting to $800 000.
“We are concerned that MicroKing should not be allowed to go under because it’s helping the informal sector. We will bend over backwards to save MicroKing,” Chinamasa said.
DFID permanent secretary Mark Lowcock said the microfinance arm of AfrAsia Zimbabwe Holdings was transparent in its dealings and the UK government’s arm for ending poverty was willing to continue the relationship.
“MicroKing has been successful in its engagement, they have been servicing resources we have been putting in them,” Lowcock said.
Chinamasa said the country’s economic structure had changed and was now skewed towards the informal sector.
He said there was need to assist the sector to become the champions in the economy.
Chinamasa appealed to Lowcock to assist the private sector through Foreign Direct Investments as well as working with financial institutions for on-lending to the sectors of the economy.
MicroKing has been lending finance to medium and small enterprises. Since 2009, MicroKing has channelled over
$200 million to SMEs.