GetBucks Microfinance Bank Limited is a registered financial institution that specializes in money lending. It is based in South Africa but also operates in Namibia and Botswana; Southern Africa in general. The Zimbabwe Stock Exchange (ZSE) focuses on the listing of securities along with providing trade and regulation services for secondary market securities. GetBucks is also listed on the ZSE. The ZSE is also tasked with the responsibility of facilitating the growth of local capital markets. The two players namely, GetBucks and ZSE have entered into a strategic partnership by signing a memorandum of understanding (MoU). The thrust of the MoU is to bankroll small and medium enterprises (SMEs) plus providing any other relevant support.

ZEEM – The Strategic Partnership

Zimbabwe Emerging Enterprise Market (ZEEM) – the name of the initiative underpinned by this strategic partnership. It will entail the provision of working capital to registered businesses; particularly focusing on small and medium enterprises. The other long term aim will be to ultimately assist those SMEs to get listed on the ZSE. This will be done through capacity building and teaching initiatives such as workshops. The main focus will be to impart knowledge to SMEs on the importance of getting listed on the ZSE. GetBucks will be central to offering any key support needed along the way.

The Importance Of The SMEs Demographic

Initiatives like the ZEEM are much needed especially nowadays and particularly in Zimbabwe. Did you know that at least 60% of the local population is employed through SMEs? Did you also know that at least 50% of the Zimbabwean GDP comes from SMEs? Here is another significant statistic; SMEs make up roughly 70% of all registered taxpayers under the Zimbabwe Revenue Authority (ZIMRA). This clearly shows that SMEs need all the support they can get. This is especially so now because they are contending with a lot of hurdles due to the unstable economy. The world over it is now apparent how SMEs fare is highly tied into the overall economic performance of a nation. If the operating environment is enabling and most SMEs scale into big brands then the result is an economic boom.

SMEs Contend With So Many Challenges

The biggest hurdle SMEs deal with is lack of funding. In most cases SMEs are considered high-risk thus financiers tend to be heavily opposed to funding them. The other issue stems from the failure by most SMEs to provide collateral when seeking loans. Many SMEs also are not registered and this makes them ineligible to get loans from financial institutions. When you put all this together and consider the state of the economy right now you can see how important it is for SMEs to get help. We cannot stand by and just watch as they wither or die out altogether. They hold keys to economic growth and employment creation amongst other valuable metrics. This is why this ZEEM strategic partnership is timely because it will address some of these challenges I have just been discussing.

There is a lot of work that needs to be done. As much as GetBucks and the ZSE have joined hands to contribute something, they cannot do it all alone. There is a need for more players to get involved in providing material and immaterial support to local SMEs. As I earlier on pointed out; we cannot speak of or anticipate economic growth if SMEs are still downtrodden. We cannot expect unemployment to tumble if more and more SMEs are struggling or going out of business. Aside from just the financing aspect, SMEs also need to be taken through capacity building initiatives so that they transform their businesses into formal entities. Some of them fail not because they lack the resources but at times it is lack of knowledge or the skillset to properly run an enterprise.