MPC approves $500m loan facility for MSMEs

The central bank’s Monetary Policy Committee (MPC) has resolved to enhance support of the economic activity by approving a $500 million loan facility for micro, small and medium enterprises (MSMEs).

MSMEs are recognized as the backbone of any developing economy with the efforts they make to sustainable development, in terms of contributions to economic growth, creation of decent jobs, provision of public goods and services.

In a recent meeting statement, RBZ said the approval of this loan facility will enhance production across all the sectors of the economy.

“The MPC 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 across all the sectors of the economy,” reads the statement.

Through this facility, the bank policy rate at 40 percent and the interest rate on the Medium Term Accommodation Facility at 30 percent per annum will be maintained together with the prevailing price stability is maintained.

The MPC has also reaffirmed its commitment to sustaining the disinflationary path to the end of the year and expects year-on-year inflation to go down to below 55 percent by July 2021.

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