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Micro, Small and Medium Enterprises Fund in Zimbabwe

In terms of section 2G of the Small and Medium Enterprises Act [Chapter 24:12] (SME Act) there is a fund established known as the Micro, Small and Medium Enterprises Fund. Apart from providing direct funding to micro, small and medium enterprises (MSMEs) and small to medium enterprises (SMEs), also provides wholesale finance to microfinance institutions which are registered with the Reserve Bank of Zimbabwe. 

The objects of the Micro, Small and Medium Enterprises Fund in Zimbabwe are set out in section 2I of the SME Act which provides as follows:

1. to promote and facilitate the establishment and development of MSMEs;

2. to carry on micro-finance business in relation to MSMEs, that is— 

3. accepting withdrawable or repayable deposits on demand or after a fixed period or after notice; and

4. employing withdrawable or repayable deposits, in whole or in part, to make loans and provide facilities to or for the benefit of MSMEs and co-operatives; and

5. to encourage savings and the use of formal banking facilities by MSMEs and co-operatives; and

6. to manage and provide developmental financing for transformation of rural communities, poverty reduction, employment creation and economic development.