UKAid and Financial Sector Deepening (FSD) Africa will on June 14 launch a competition to identify and support enterprising financial solutions in Zimbabwe.
In a statement yesterday, FSD Africa official, Joe Huxley said the competition formed a key part of FSD’s commitment to making financial markets work better for Zimbabweans.
“Good quality enterprise finance provides oxygen for entrepreneurs and firms to grow, which in turn drives economic growth and poverty reduction,” he said.
For the competition, the three most promising concepts — that are feasible, relevant and impactful — will each receive £10 000 to strengthen the design and test the business case.
Later, up to two winning proposals will then be selected to pitch their concepts to the FSD Africa Investment Committee for up to £500 000 of investment.
The event is expected to be held at a Harare hotel.
FSD Africa said a lack of innovation, capacity and consumer confidence in credit and capital markets had deeply constrained lending and investment flows to the private sector in Zimbabwe.
“We hope that it (competition) provides fresh impetus to private credit flows towards bankable micro, small and medium enterprise projects, as well as raise awareness of credit issues in Zimbabwe,” FSD Africa said.
FSD Africa is a non-profit company, which aims to increase prosperity, create jobs and reduce poverty by bringing about a transformation in financial markets in sub-Saharan Africa and in the economies, they serve.
The company is funded by UKAid, a United Kingdom government agency.