Online Reporter
Business Reporter
THE Zimbabwean economy is dominated by informal micro-businesses, according to a preliminary report of the 2023 Economic Census released today by the Zimbabwe National Statistics Agency (ZimStat).
The census identified a total of 204 798 operational business establishments across the country, with a significant majority operating outside formal registration frameworks.
Of the total business establishments surveyed, 76,1 percent of the operations were categorised as informal, meaning they were not registered by the Registrar of Companies, Registrar of Cooperatives, Zimbabwe Revenue Authority, or National Social Authority, or did not consistently keep records.
The remaining proportion comprised formal businesses. The report further highlighted that 87,9 percent of all establishments were micro-enterprises, adhering to the criteria set out in the Small and Medium Enterprises Act.
While all 2 031 large establishments identified were formal, only 18,9 percent of the 180 073 micro-establishments had formal status, underscoring the prevalence of informality among smaller ventures.
Sectorally, the “wholesale and retail trade; repair of motor vehicles and motorcycles” sector emerged as the largest contributor, accounting for 73,13 percent of all establishments.
This was followed by the “manufacturing” sector, which comprised 8,24 percent of the total.
Within the manufacturing sector specifically, 19,0 per cent of its 16 877 establishments were formal.
Geographical analysis revealed a strong urban concentration, with approximately 87 percent of establishments located in urban areas, compared to 13,3 percent in rural settings.
Provincial data on formality showed considerable variation. Bulawayo Province stood out with 40,4 percent of its 15 840 establishments operating formally, a significantly higher proportion than most other provinces.
The majority of provinces recorded less than 30 percent of their establishments as formal, with Bulawayo (29,2 percent) and Matabeleland North (20,3 percent) being the only exceptions with more than 20 percent of establishments registered with the Registrar of Companies.
Overall, less than 20 percent (17,6 percent) of establishments in the manufacturing sector were registered with the Registrar of Companies.
In terms of business structure, sole proprietorships dominated the landscape, making up 89,42 percent of the 204 798 establishments at a national level.
Private Limited Companies constituted a smaller, but still significant, 7,13 percent of the total.
The preliminary findings paint a clear picture of a predominantly informal, micro-enterprise-driven economy in Zimbabwe.
Speaking at the dissemination event held in Harare on Wednesday, ZimStat board chairperson Mr John Mafararika said the economic census stands as a cornerstone of Zimbabwe’s statistical system and a vital tool for driving informed decisions at all levels of Government and business.
“This is a landmark operation that speaks directly to Zimstat’s mandate of producing comprehensive, reliable and timely statistics,” he said.
“Such data is essential in guiding economic policy, shaping business strategy, supporting research and even household-level decision-making.”
The 2023 Economic Census provides an updated national snapshot of the structure, size and distribution of economic activities across sectors.
