$500m to boost small businesses

05 May, 2021 - 07:05 0 Views
$500m to boost small businesses Dr John Mangudya

The Sunday News

Sunday News Reporter, Sithatshisiwe Vuma

THE Reserve Bank of Zimbabwe (RBZ) has announced a $500 million facility to benefit Micro, Small and Medium Enterprises (MSMES) to stimulate growth.

In a statement on Tuesday, RBZ Governor Dr John Mangudya said the loan facility was approved after the Monetary Policy Committee (MPC) meeting held last week.

“The RBZ approved a facility of ZW$500 million for micro, small and medium enterprises which the MSMEs will access from banks and micro-finance institutions at 30 percent per annum for purposes of enhancing production and productivity across all the sectors of the economy; and reaffirmed its position to support bureaux de change with foreign exchange requirements to support MSMEs which need foreign currency for their various productive requirements,” he said.

He said MPC also noted with great satisfaction the reduction in inflation, which has further fallen from 240.1 percent in March 2021 to 194 percent in April 2021 and also reaffirmed its stance to sustain the disinflationary path to the end of the year. The central bank expects year-on-year inflation to go down to below 55 percent by July 2021.

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