Online Reporter
Emmanuel Kafe
NEARLY 10 000 new companies have registered with the National Social Security Authority (NSSA) over the past two years, highlighting the resilience of Zimbabwe’s economy in generating employment despite challenging conditions.
According to NSSA data, 4 675 new companies registered with the authority in 2024, marking a 9 percent increase from the 4 286 recorded in 2023.
This growth was largely driven by the formalisation of small to medium enterprises (SMEs), which are playing an increasingly central role in the economy.
The law mandates all new companies to register with NSSA to comply with labour laws and ensure social security benefits for their employees.
Registration allows employees to contribute to and benefit from NSSA’s pension schemes, worker compensation and other social security programmes.
Crucially, being registered enhances a company’s credibility and compliance status, which can improve business opportunities, especially with Government and corporate clients.
Non-compliance, however, can result in fines and legal consequences for businesses.
Despite this rise in employer listings, the number of new employees registering with NSSA declined by 53 percent, from 12 257 in 2023 to 5 737 last year.
But 1,3 million workers remained active contributors to NSSA schemes in 2024.
Commerce, personal services and agriculture led in new employer registrations, though all sectors experienced a decline in absolute employment numbers.
NSSA’s deputy director of marketing and communication Mr Tendai Mutseyekwa said while overall employee numbers have marginally declined, the rise in new business registrations reflects the strength of SMEs in driving employment in key sectors.
“There was a 9 percent growth in new employer registrations between 2023 and 2024 and this was attributed to growth in small to medium enterprises,” he said.
“In 2023, 12 257 new employee registrations were recorded, with 4 286 employers registering with the social security authority.
“Meanwhile in 2024, at least 4 675 companies registered with NSSA, with 5 737 of their employees now contributing to the pension scheme.”
Mr Mutseyekwa indicated that contributor numbers are declining mainly due to downsizing and rightsizing by some large employers, which are being replaced by SMEs that typically employ fewer workers.
“As a result, there is no corresponding increase in employee numbers as compared to the increase in the employer base,” he added.
“The employee base has in fact reduced by 3 percent.”
In 2023, the total number of employees stood at 1 340 185, before dropping marginally to 1 300 469 last year.
Economic analyst Mr Prosper Chitambara noted that the increase in business registrations suggests that SMEs are playing a crucial role in Zimbabwe’s broader economic recovery, even as larger corporations face difficulties.
“This increase in SME registrations indicates a strong entrepreneurial spirit, with these businesses playing a crucial role in driving job creation and contributing to economic diversification,” he said.
“The sectors seeing the most growth — commerce, personal services and agriculture — are essential to the country’s development
“SMEs are proving to be a vital force in sustaining economic activity, providing employment opportunities and addressing local demand in ways that large companies may not be able to.”
He added that while the total employee base has slightly declined due to downsizing in larger firms, the expansion of SMEs demonstrates that smaller businesses are filling critical gaps in the labour market and maintaining economic activity.
“Their contribution to NSSA shows that they are meeting social security obligations, which benefits both employers and employees, fostering a more secure and sustainable labour environment.”
