The Zimbabwe Cross Border Traders’ Association (ZCTBA) is working on enabling its members to access loans at microfinance institutions in order to boost their operations and promote local products.
BY TATIRA ZWINOIRA
ZCBTA secretary-general, Augustine Tawanda said negotiations with four microfinance institutions were at an advanced stage.
“We have developed what we call Mukando Fund and have sold this [concept] to a number of banking institutions and microfinance institutions. The concept behind this is that for every dollar saved, we expect somebody to get something like $5 by way of credit. So, those microfinance institutions have agreed that it promotes savings and at the same time also creates an opportunity for giving out loans,” he said.
However, Zimbabwe Association of Microfinance Institutions executive director, Godfrey Chitambo could not confirm whether cross-border traders were in discussions with some of their 106 members.
“But that could possibly be very true,” he said.
Access to credit is a major challenge for microfinance institutions and the facility would enable cross-border traders to save and access credit at the same time.
Meanwhile, the Confederation of Zimbabwe Industries, ZCBTA and Steward Bank have launched a partnership that links manufacturers and cross-border traders to receive discounts when buying products locally.
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CZI president, Busisa Moyo said this partnership was meant to entice cross-border traders to limit imports and use their networks to boost industry by allowing manufacturers to access new niche markets.
Major destinations for cross-border traders are South Africa, Tanzania, Mozambique, Zambia and Botswana.
Cross-border traders, through having the card, are set to benefit by getting discounted rates from local manufacturers.
Steward Bank offered a card for local use by cross borders, with plans to introduce an international one also in place.
Steward Bank CEO Lance Mambondiani told NewsDay on the sidelines of the launch that the card would also be linked to EcoCash.
“So they will take the card to wherever they are acquiring commodities or goods. The card and relationship between CZI and ZCBTA already gives them a discount. So, they are identified as a ZCBTA member, get the discount and simply swipe using the card. This country is trying to move towards a plastic money economy, so where they are going to Lyons, as an example, they are not going to be moving with buckets of cash,” he said.
