ZNCC Gwanda chairman, Misheck Ndlovu, said the one month period for the submissions of funds loaned by businesses from banks was restrictive since the economy is in a state of recovery after experiencing a downturn over the years.

He said money lending institutions such as the Small Enterprises Development Corporation should be made accessible to businesses especially in remote areas so as to capacitate them.

“All that we have been canvassing and lobbying is for organisations or financial institutions such as SEDCO to come and conduct their businesses with business people from small towns.

“The requirements demanded by banks for remittance of their loans are stringent. To remit the money with some interest in a space of one month is cumbersome because one wouldn’t have done any meaningful business during that period. The economy isn’t what the people perceive it to be as we are still to find our feet as businesses,” Ndlovu said.

He said most retail shops in small towns and remote areas are still closed due to lack of capital.

Most shops were forced to close after Government introduced a price reduction blitz in 2007 in a bid to guard against unwarranted price increases by businesses as they fought to peg the prices of their commodities in-line with the ever spiralling inflation.

A National Incomes and Pricing Commission was put in place to monitor the country’s pricing system and as a result most businesses closed as they failed had insufficient funds to restock while virtually all manufacturing companies were brought to a standstill citing low operational costs.

“We tried to engage the Ministry of Industry and Commerce to consider retail shops as Small to Medium Enterprises to access the credit facility but we were told to get into it like any business concerns.

“As long as the regulations pertaining the granting of loans is not rectified most shops will remain closed for a long time,” Ndlovu said.

He said other factors which militate against shops in remote areas are restrictive by laws by local authorities and exorbitant service charges by service providers.

“The bylaws are restrictive for example at the beginning of each year shop owners are made to pay hefty levies for their stands before they start business and as a result they end up selling their livestock depleting their resources in the process.

“The other thing which militates against formal businesses are the high water and electricity bills as a result of this the informal sector has taken over because they don’t incur any expenses,” Ndlovu said.