‘Budget allocation for SMEs too little’

MICRO, Small and Medium Enterprises (MSMEs) have decried the ZiG28,2 million allocated to their parent ministry saying it is inadequate to meet the needs of the sector.

Speaking at a post-budget review seminar organised by the Zimbabwe Chamber of Small to Medium Enterprises, Indigenous Advisory Practitioners Association of Zimbabwe and the Harare Institute of Technology in Harare last week, SMEs development expert Ethel Mupambwa said the allocation by Finance minister Mthuli Ncube to the Women Affairs, Community, Co-operatives and SMEs Development ministry did not do justice to the sector.

She said the sector was looking forward for infrastructural development from the allocation.

“We are not looking at this allocation to come to us directly, but we are looking at it if it’s infrastructural development that we are looking towards.

“I think we all know the recent tragedy that we got into with Mbare Musika burning down yet it is the hive of activity with the MSMEs trading in that market.

“We need to rebuild that Mbare Musika in such a way that we can identify each MSME trading in that market and it will be even easier for them to be able to contribute to the fiscus.”

Economic analyst Persistence Gwanyanya, however, said the MSMEs sector should ignore the budgetary allocation and focus more on economic growth and stability.

“Clearly, the budget did not meet the expectations of the generality of people in the economy, including SMEs. But relying on the increased budget vote is ill-advised. Government should create an environment that is supportive of people,” he said.

Monica Mutsvangwa,  Women Affairs, Community, Co-operatives and SMEs Development minister, hailed the sector for its crucial role in transforming the economy to upper middle income.

She, however, said the task ahead needed all hands on deck, expressing her ministry’s support in addressing the needs of the sector.

Mutsvangwa said the budget aimed at integrating MSMEs into the mainstream economy, improving tax administration efficiency and promoting taxpayer compliance.

“The budget, as pronounced, entails incorporating MSMEs to the mainstream economy, as well as enhancing efficiency in tax administration, thereby promoting taxpayer compliance.

“This ushers in a number of benefits chief among them the establishment of formal jobs and broadening of the tax base. This will also allow MSMEs to have access to finance, infrastructure as well as enhance market penetration,” she said.

MSMEs contribute over 60% of the GDP of our economy and according to a 2021 SMEs survey about 4,1 million individuals were operating 3,4 million enterprises.