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ACL to sign more credit lines

Business
African Century Leasing (ACL) will sign three more credit lines before year-end to boost its business, an official has said.

African Century Leasing (ACL) will sign three more credit lines before year-end to boost its business, an official has said.

BUSINESS REPORTER

Speaking at the signing ceremony of the $5 million credit line from FMO on Monday, ACL managing director Stanley Matiza said the $5 million was a second tranche of funding that the company had received from the Dutch development bank.

In 2013, ACL accessed $8 million from FMO.

“I am pleased to advise the honourable minister that ACL has successfully engaged several other funders and we expect to conclude at least three more credit lines by year end,” Matiza said.

Matiza said the company showcased Zimbabwe in Netherlands as an attractive destination and this opened more opportunities for the company.

He said the leasing industry required more long-term funding to meet the needs of local industry.

Finance minister Patrick Chinamasa said government would continue to ensure protection of investors and to create a conducive economic environment.

“What is important is that we build a track record for honouring our obligations. If this facility is honoured, I am assured by the funders that they will make more resources available without any limits.

The limit is our own ability to maintain a track record that satisfies those who want to invest in our economic growth,” Chinamasa said.

He said the government needed to come up with a framework that would enable Dutch companies to invest in the horticultural sector by virtue of being the biggest market for Zimbabwe’s horticultural produce.

FMO representative Jaap Reinking said small and medium enterprises (SMEs) were important for job creation in any economy.

Reinking said it was FMO’s mission to empower entrepreneurs. Reinking said they hoped to deepen their relationship with ACL.

“FMO is committed to creating sustainable economic impact in emerging markets. By providing long-term funding to ACL, it will contribute to the development of SME sector in Zimbabwe. The country remains deprived of adequate access to finance, which is also the case for an early growth leasing company,” Reinking said.