Zimbabwe's National Social Security Authority (NSSA) has set aside 100 billion Zimbabwean dollars ( approximately 1 million U.S. dollars) for the development of small and medium-sized enterprises (SMEs) this year as part of its social security obligations.

NSSA chairman Edwin Manikai said the funds were specifically set aside for the sector, which he described as an engine for economic growth.

The funds, which have been doubled from 50 billion Zimbabwean dollars last year, will be channeled to SMEs through institutions such as the National Investment Trust and the Small Enterprises Development Corporation.

"We channel the money through these institutions because they have the greater geographical reach, they cover the various sectors of the economy and are able to appraise projects at shop floor rather than being appraised here at NSSA," he said.

Funds channeled to the SMEs were at a concessionary rate and not at market rates, he said, adding this was because the businesses were the engine for growth.

In Zimbabwe, one U.S. dollar equals about 101,000 Zimbabwean dollars at the official exchange rate, but is an equivalent of over 300,000 Zimbabwean dollars in the parallel market, or black market.

Industrial bodies, including the Zimbabwean National Chamber of Commerce, have thrown their weight behind the promotion of SMEs, which they have said have the potential to boost economic growth.

Source: Xinhua