Govt urged to incorporate SMEs on Dimaf

Business
THE administrators of a fund meant to revive distressed companies says the fund should also cater for small to medium enterprises (SMEs) in the future, as they have a potential for growth.

THE administrators of a fund meant to revive distressed companies says the fund should also cater for small to medium enterprises (SMEs) in the future, as they have a potential for growth.

REPORT BY MUSA DUBE

Leading mortgage lender, CABS are managing the Distressed Industries and Marginalised Areas Fund (Dimaf), a US$40 million revival plan for struggling companies in Bulawayo and other areas.

Presenting an update on Dimaf to the Bulawayo business community last week, CABS corporate and institutional banking head, Cecil Ndoro called on Dimaf financiers — government and Old Mutual — to increase the funding and incorporate SMEs as they played a significant role in the economy.

“The issue that was taken on board as the administrators of the fund was that there is need for all the financiers to try and cater for the SMEs. It’s a sector that has been ignored for a long time but with a potential to grow,” said Ndoro.

He said CABS was already out in full swing looking for more funds.

So far, about US$18 788 750 has been disbursed across the country through Dimaf to various companies in several sectors such as manufacturing, agriculture, distribution and tourism.

Ndoro said Bulawayo companies were the biggest beneficiaries of the fund after having so far received about US$13 million.

He acknowledged that the fund was not enough to cater for the struggling industries.

Economic commentators say Bulawayo’s industries needed about US$100 million to recapitalise.

Dimaf was launched in October 2011 with the objective of resuscitating ailing companies from Bulawayo and other areas.

Old Mutual and government, thro-ugh the Ministry of Finance, signed a Memorandum of Understanding to set up a US$40 million revolving fund with each party contributing US$20 million.