Staff Reporter
Following the launch of Government Employees Mutual Fund (GEMS) in February this year, there has been a massive scramble by civil servants to apply for loans in defiance of advice from some of their unions to opt out of the Government-initiated fund.
A survey conducted by this publication revealed that a high number of civil servants, particularly teachers, are visiting the National Building Society (NBS) to apply for the loans.
The Progressive Teachers Union of Zimbabwe (PTUZ) and the Amalgamated Rural Teachers Union of Zimbabwe (ARTUZ) have been urging teachers to boycott joining the loan initiative.
Civil servants interviewed by this publication applauded the Government for coming up with such an initiative to cushion them from loan sharks who were charging exorbitant interest rates on loans.
“The GEMS fund loan has favourable terms and conditions compared to other lending institutions like banks and loan sharks. A minimum interest rate of 10 percent shall apply per annum on the GEMS loans which is far lower than the 50-60 percent charged by many banks. I have applied for the loan so that I can finish building my house in Kuwadzana which is currently at window level,” said Mr Christopher Mukweza, a teacher from Zvimba.
Another Government employee, Mrs Edna Chinyedu from the Ministry of Health and Child Care said the loan would go a long way in funding her piggery project in her rural home in Mhondoro and paying school fees for her children.
Government injected ZWL$75 million to the GEMS Fund scheme with the aim of creating a revolving facility which civil servants, who voluntarily chose to participate in it, can access loans at their time of need at concessionary rates far below the prevailing market rates and way better than loan sharks.
Apart from GEMS Fund, the Government is doing a lot to show its commitment in improving lives of its employees.
Recently, the Government awarded a 75 percent salary increment to civil servants and also introduced the ZUPCO facility to cushion workers from transport woes.
