Siphakeme .Mnindwa
Gibson Mhaka, Zimpapers Politics Hub
IN the heart of Umguza District, Matabeleland North Province, renowned for its diverse farming activities, including dairy production, a young entrepreneur, Mr Liberty Moyo (27), dreams of building a successful business.
Surrounded by the potential of the dairy industry, Mr Moyo possesses the drive and ambition to contribute to his community’s economic growth. However, like many aspiring entrepreneurs, he faces significant challenges in translating his vision into a sustainable livelihood.
While opportunities abound in Umguza’s dairy sector, a critical gap exists in Mr Moyo’s experience, skills and financial literacy, hindering his ability to navigate the complexities of running a successful business.
“I see so much potential here, but it feels like I’m constantly hitting a wall. I know I have the drive and the ideas, but the financial side of running a business…it’s all a mystery to me.
“Budgeting, understanding profit margins, even just knowing how to approach a bank for a loan — it’s all a blur. Without those skills, I can’t seem to get my business off the ground, let alone convince anyone, including the bank, to take a chance on me. It’s hard to see how my small business can ever really grow,” he lamented.
Mr Moyo’s experience mirrors the struggles of countless aspiring entrepreneurs, especially youth and young women, throughout Zimbabwe.
Despite the abundance of opportunities, such as those present in Umguza’s dairy industry, the road to a sustainable livelihood is often fraught with obstacles.
However, thanks to the International Labour Organisation (ILO), which is actively working to address these challenges and empower women and youth across Zimbabwe, there is hope.
Through numerous capacity-building initiatives, the ILO, with funding from the African Development Bank, is providing crucial training and support to youth and women in various districts, including Umguza in Matabeleland North, offering practical solutions to aspiring entrepreneurs like Mr Moyo.
To further address the unique challenges faced by a majority of female and young entrepreneurs, particularly those with home-based businesses, who often lack skills and knowledge of financial concepts such as budgeting and profit management, and consequently have less access to understanding the financial and economic systems and support schemes, the ILO, in collaboration with the Government and various stakeholders, has launched its first Financial Education Training programme in Bulawayo.
Speaking on the sidelines of the four-day training, held recently in Bulawayo, ILO representative Mr Fortune Sithole said the training, the first of its kind in Zimbabwe, is designed to equip aspiring entrepreneurs with the essential financial literacy skills they need to thrive.
“This project is supported by the African Development Bank through the Government of Zimbabwe, particularly the Ministry of Women Affairs, Community, Small and Medium Enterprises Development, and the Ministry of Youth Empowerment, Development and Vocational Training, which are our main partners,” Mr Sithole said.
Recognising the diverse economic landscapes across the country, the ILO has strategically partnered with 17 organisations to implement tailored programmes in various districts, focusing on value addition and sustainable practices within specific value chains.
This localised approach ensures that the training resonates with the unique needs and opportunities of each community.
“For example, here in Bulawayo, we are working with about five partners involved in business development. We are also working in Umguza, where we are targeting the dairy value chain. We are promoting value addition among young people engaged in dairy farming as a pathway for economic growth and self-sustainability,” he said.
He said the training targets 1 000 women and youth entrepreneurs aged 18 to 35 across Zimbabwe, equipping them with essential skills for managing business finances effectively.
Mr Sithole added that, similarly, in Mutoko, where tomato farming dominates, the ILO’s support extends beyond training to infrastructure development.
“We are also working in Mutoko with the Ministry of Youth, targeting young women and men in tomato farming,” he said.
“We are promoting value addition by constructing a tomato processing plant where they can process their tomatoes into tomato paste. The construction of this new plant is enabling young men and women in the sector to add value to their produce, reducing waste and increasing profitability.” He added: “We are also in Honde Valley, specifically in Hauna, where we are working with banana farmers.
“Part of our work is to promote value addition within the banana value chain. We are aware of the challenges they face; their markets are in Harare, Mutare, and all over the country, but they experience significant post-harvest losses due to a lack of proper storage and transport systems. Therefore, we are constructing, and about to finalise, a banana processing plant where they can add value to their bananas.
“We are also training them in business management to improve their business skills for growth, as well as providing financial education and market linkages.”
The project’s impact extends beyond purely economic empowerment.
In Masvingo, Mr Sithole said the ILO has established a market centre that integrates a vital Gender-Based Violence (GBV) support center and an Early Childhood Development (ECD) facility.
“In Masvingo, we are working with the Ministry of Women Affairs to train young people in the business aspects of farming, enabling them to grow their businesses, create employment and contribute to national priorities such as the National Development Strategy 1. That’s a key part of our work there,” he said.
“Of particular interest in Masvingo is the market centre we constructed, which includes a Gender-Based Violence (GBV) centre.
“This provides easy access to frontline support for young women who have been abused but are also working at the market.
“At the same market, we have also established an Early Childhood Development (ECD) centre. Instead of travelling five kilometres or 10km to access education, children can now attend the ECD centre right there in the market, which enhances productivity and profit margins.”
In Karoi, the focus shifts to artisanal miners, a group often facing income volatility. The ILO’s programme provides specialised training in business management, including managing mining claims and diversifying income streams.
Crucially, the programme addresses the challenge of unsustainable spending habits by imparting essential financial literacy skills.
“They don’t live in survival mode,” said Mr Sithole. “If they have better money management skills, they can sustainably live their lives and they can sustainably invest their money.”
Dial-Honour Consultancies managing director, Mr Shepherd Zhou, a partner in the initiative, noted the significant gap in financial knowledge among start-ups.
“We partnered with the ILO in rolling out these programmes,” he said. “We began in 2023 with the Sustainable and Resilient Enterprise programme, which focused on enterprises led by women and youth.
“Our goal was to ensure they were prepared for disasters, able to recover from them, and even rebuild stronger. Many start-ups operate informally without structured plans for raising or managing capital.
“This training addresses that gap, helping businesses grow sustainably by fostering wise financial decisions in areas such as borrowing and saving,” he added.
One of the beneficiaries of the training, Miss Larna Gwata (20), explained that she benefitted greatly, noting that as female entrepreneurs running home-based businesses, they often lack financial skills, and that she found the concept of prudence particularly valuable, as it teaches them not to overestimate income and underestimate expenses, guiding them to recognise potential losses sooner and delay recognising gains until they are realised.
“I benefitted greatly from this training. As female entrepreneurs who often run home-based businesses, we frequently lack the skills and knowledge of financial concepts.
“One valuable concept I learned is prudence. This principle teaches us not to overestimate income and underestimate expenses.
“It also helps ensure that businesses are prepared for potential downturns and encourages responsible financial management,” she said.
Online Reporter