SMEs chamber clinches funding deal

RYAN CHIGOCHE

The Zimbabwe Chamber of Informal Economies ( ZCIEA) is finalising a funding deal with Streetnet International, Business Times can report.

Streetnet is a global organisation of informal traders, whose objective is to promote and leverage an autonomous and democratic alliance of street vendors, hawkers, and cross-border traders in over 50 countries.

ZCIEA president Loraine Sibanda  (pictured) confirmed the deal but did not disclose the amount involved.

“Access to funding for some time has been and is still a problem affecting us as ZCIEA.

“We have no access to the major banking facilities. However, there is a huge deal that I’m going to announce very soon. We are on the verge of acquiring a huge amount of money from Streetnet International.

The money will go a long way in ensuring that the businesses of our members will be sustainable in the long run,” Sibanda said.

Apart from being the ZCIEA national president, Sibanda is also an international President for  Streetnet International.

She has occupied the presidency since 2016.

The organisation invests in the capacities of members to increase organisational capacity, internal democracy, training, and actions, bringing the demands of street vendors and other informal traders to the international foras, local negotiations, and combat the stigma against informal economy workers.

For a long time they have been calling for the SMEs to be included and have more funding available to them bearing their importance to the economy and contribution to the national GDP.

In Zimbabwe, almost about 70% of the population are employed in the sector as for the past two decades, formal businesses have failed to create business opportunities or to create employment for the growing population.

According to the 2019 ZimStat Labour Survey, about 84.5% of employed people in the country are involved in the informal sector.

The funding by Streetnet International is going to benefit the informal traders immensely and also the economy of Zimbabwe at large.

The sector is a source of livelihood for many vulnerable groups in the country including the disabled, women, and young people, experts say therefore it is very crucial that funding is availed or that they have access to financial institutions.