Zimbabwe March 2006 |
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| Homelink scheme offers business loans, (The Herald, 2006-03-02):-Zimbabweans living abroad and their businesses can now obtain convenient loans at affordable interest rates for investment purposes through Homelink's New Enterprise Development Investment Scheme (Nedis). So too can Zimbabweans and businesses at home, provided they have access to foreign currency classified as free funds, since the loans have to be repaid in foreign currency. The convenient and innovative scheme allows individual Zimbabwean citizens in the diaspora and Zimbabwean-owned companies abroad to obtain loans for business investments in new or existing businesses in Zimbabwe. As with other Homelink schemes, Nedis was introduced in response to requests from Zimbabweans abroad, who asked for an investment loan scheme similar to the Homelink Housing Development Scheme, which has proved so popular. The interest expressed by non-resident Zimbabweans in investing in Zimbabwe has already led to the revision of regulations to make investment easy for them. There are many investment opportunities that Zimbabweans in the diaspora could take advantage of in almost every sector of the economy, including mining, manufacturing, agriculture, tourism, information technology, telecommunications, transport services, health, water, energy, infrastructure, housing and consultancy. Some have already made business investments back home in Zimbabwe from their own resources and others have generated sufficient income from their own businesses in the diaspora to be able to consider doing so in future. However, there are other individuals and companies that would benefit from a Nedis loan to start a new business, supplement their own resources or expand their operations. As with the Homelink Housing Development Scheme, the loan is disbursed in Zimbabwe dollars and repaid in foreign currency. Nedis loan application forms can be downloaded from the Homelink website (www.homelinkzimbabwe.com). There are separate application forms for corporates and for individuals. The interest rate is currency based and will not exceed 10 percent for any currency. For instance, if payment is made in United States dollars, then the interest rate will be based on interest rates in the United States plus a risk weighted factor. If payment is in sterling, the interest rate will be based on British interest rates. If it is in rands then South African lending rates will be the basis for fixing the interest rate. The loan can be used as start-up capital to start a new business. It can also be used to supplement the borrower's own start-up capital. However, the loan is not restricted to this. It can be used for additional investment in an existing business to give it the financial boost it needs to enhance its operations. It can also be used for working capital or for the purchase of equipment and machinery for the business. The loan repayment period is between 18 months and five years, depending on its size. Normal Homelink loan conditions apply. Loan applicants must be creditworthy and able to provide collateral as security for the loan. Individuals need to provide proof of their monthly income. Companies have to provide bank statements and audited financial accounts as proof of their annual net income and profit. There is a checklist at the bottom of the application form of the documents that need to be submitted with the application. Provided loan applicants meet the necessary criteria and submit the required documentation, they can expect their applications to be processed within 30 days of receipt of the application. The application together with the supporting documentation can be submitted directly to the Homelink Centre in either Harare or Bulawayo. Where necessary Homelink works in partnership with the Small Enterprises Development Corporation (Sedco), Venture Capital Company of Zimbabwe, Zimbabwe Investment Centre and Export Processing Zones Authority to ensure that the business proposals for which finance is sought are viable and comply with Zimbabwe's investment regulations and to facilitate the speedy processing of the investment proposal. Zimbabweans living abroad who start up businesses in Zimbabwe with capital brought in from outside the country can have the dividends and profits from their business remitted to them in their country of residence once their obligations to Homelink have been settled in full. Non-resident Zimbabweans can own up to 70 percent of the shares of a company listed on the Zimbabwe Stock Exchange and 100 percent of the shares of non-listed companies. Zimbabweans living abroad and local Zimbabwean citizens with legitimate foreign currency income who wish to know more about Homelink's New Enterprise Development Investment Scheme can obtain further information from the Homelink Call Centres. They will find the staff there friendly and responsive. | |
South African Migration Project (SAMP) - Queen's University - http://www.queensu.ca/samp |