RBZ ready to bail out companies

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The Reserve Bank of Zimbabwe (RBZ) says there is cheaper funding for smaller and medium sized companies under the financial inclusion strategy aimed at creating a broad-based economy.

BY BUSINESS REPORTER

Speaking to journalists after a tour of furniture manufacturer, Teecherz, RBZ deputy governor Jesimen Chipika said there is cheaper funding for a graduation from micro into small, medium and large companies.

“We have cheaper funding particular for smaller and medium-sized companies, which we have put under the national financial inclusion strategy when we noted that our SMEs were not accessing the financing. We had to design under different facilities that are not covering not only SMEs but all other previously marginalised groups. We are putting them under the national financial inclusion strategy,” she said.

“To us, we are saying if we do financial inclusion, we support the growing of an inclusive broad-based economy. The moment we have a broad-based economy, that’s sustainable development. The progression is natural than instead of dealing with a small enclave economy with a few companies, where we are all looking for jobs.”

Chipika said Teecherz was a fully-fledged facility operating with high level of capacity, lauding the company for venturing into the export market.

Teecherz chief executive officer Phanuel Vheriwa said they were generating about $200 000 monthly from exports and about $350 000 from the domestic market, which could have been more had it not been for limited resources.

He said foreign currency shortages and absence of cheaper financing were obstructing the company from enjoying economies of scale.
This, he said, has a bearing on pricing. Vheriwa said availability of forex and financing would help companies enjoy benefits of import restriction through Statutory Instrument 64 of 2016.

“Support should not be for us, but the entire value chain,” he said.

The company has been operational since 1994 and has two factories, one in Harare and the other in Bulawayo.

It has 24 retail shops countrywide and has a staff complement of 385.

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