SMEs now contributing US$8,6bn to GDP

Small and medium enterprises in Zimbabwe now contribute in total more than US$8,6 billion to the gross domestic product and employ 4,8 million people full-time, Women Affairs, Community, Small and Medium Enterprise Development Minister Monica Mutsvangwa said last week.

Speaking at the entrepreneurship networking breakfast meeting which the Zimbabwe Integrated Traders Association held in Harare last week, Minister Mutsvangwa said the sector has become the bedrock of the country’s journey towards attaining the vision of becoming an upper middle-income economy by 2030.

“The National Development Strategy has also recognised the significant role of the MSME sector in contributing to the nation’s industrial development through the provision of key ancillary products and services in key value chains in sectors such as manufacturing, mining, agriculture and services,” she said.

Her ministry disbursed $5,3 billion to support small and medium scale enterprises last year using the Small and Medium Enterprises Development Corporation, the Zimbabwe Women Microfinance Bank, the Zimbabwe Community Development Fund and the Women Development Fund.

The ministry was also facilitating the formation and strengthening of savings and credit cooperatives to assist communities to pool resources for onward lending to members, she said.

“In collaboration with other Government institutions and development partners, the ministry also facilitates and provides training to SMEs to equip them with relevant managerial and technical skills in order to enhance their business operations and adapt to the dynamic business,” she said.

Minister Mutsvangwa said access to markets was key to ensuring sustainable growth of the sector and to address the challenge, the ministry exposed those involved to markets through participation at local and international fairs to expose their products and services. Such platforms gave an opportunity for SMEs to network and benchmark their products and services with other products and services on the market.

Some of the major exhibitions where SMEs have been facilitated to participate include the Zimbabwe International Trade Fair, the Zimbabwe Agricultural Show, the Malawi International Trade Fair, Zambia International Trade Fair, Manyara and Mbeya Expos (Tanzania).

Minister Mutsvangwa noted that SMEs, particularly those in urban areas, faced work space challenges and the Government was collaborating with local authorities, development partners and private investors to develop infrastructure for MSMEs under build operate and transfer or build own operate and transfer.

The Government had also availed funding to construct SME workspaces and projects had been initiated in Gweru in the Midlands, Gwanda in Matabeleland South, Chirundu in Mashonaland West and Chikomba in Mashonaland East.

The Government was promoting standardisation and quality assurance as a means for SMEs to have a competitive edge, she said, adding the Ministry is working closely with the Standards Association of Zimbabwe on quality assurance, as well as product and systems certification to assist MSMEs in complying with international standards. — New Ziana.