Microfinance institution Untu is engaging Small and Medium Enterprises (SMEs) as well as mobile users in a bid to raise US$5 Million through the use of medium-term notes to be traded at Financial Securities Exchange (FINSEC) platforms. The notes are to be traded at minimum amounts of US$ 50 000 for institutional investors and US$1 000 for individuals and SMEs.
Speaking in an interview Escrow Group commercial director Garikai Munema said that the bonds can be accessed Telecel which is already live and later on Econet which is on demo.
“You can use Ecocash and Telecash with as low as $50 to buy bonds” said the Director of Escrow Group which owns FINSEC as a strategic business unit.
Finsec is an Alternative Trading Platform (ATP) licensed by the Securities and Exchange Commission of Zimbabwe.
Untu was founded in 2009 to provide finance to Micro Small and Medium Entreprises in Zimbabwe as it realizes a huge opportunity for the ever-growing group in the country according to Chief Executive Officer of Untu Capital Limited Clive Msipha.
“As a matter of policy we would like to cover businesses with 6 months because starting businesses may not flourish” said Msipha.
Msipha also said that the microfinance institution that also has access to global lenders is not covering the starting businesses also due to matters to do with collateral. Zimbabwe’s SMEs have in the past not grown into large cooperates mainly due to lack of capital as Zimbabwe is still rated as a risky country in terms of starting a business.
Untu has served tens of thousands of individuals MSMEs since its formation. The 8 years old financier has got 9 outlets spread across the country with 82 employers of which 35 of them are loan officers.