Online Reporter
Vusumuzi Dube, Deputy Radar Editor
BULAWAYO Metropolitan Province continues to outpace national averages in the formalisation of small and medium-sized enterprises (SMEs), boasting a formalisation ratio of 44 percent, double the national average of 22 to 23 percent.
In an interview, Permanent Secretary for Provincial Affairs and Devolution Paul Nyoni said this progress reflects a growing culture of compliance among traders and highlights the critical role of public-private partnerships (PPPs) in the province’s economic growth.
“We have a formalisation ratio above 44 percent. This is compared to a national average of around 22-23 percent, meaning the level of compliance from our traders is massive, which is why we should desist from just calling people vendors,” he said.
“Most of our traders are compliant in the sense that they are registered, they have a relationship with Zimra and all the other people.”
The shift toward formalisation, he explained, marks a vital step in transforming the informal economy and integrating SMEs into the broader economic framework.
However, Mr Nyoni noted that infrastructure remains a pressing need.
“What we need on the infrastructure side is investment, partners that can help us invest and create those safe trading places. Quite a bit has happened, as you know,” he said, referring to ongoing initiatives aimed at improving market conditions.
Drawing a parallel to emerging economies, Mr Nyoni said the SME area is where China and India were 30 years ago.
“A good percentage of SMEs become medium to large corporations, so we must ensure that our policies assist them,” he said.
Mr Nyoni pointed to a recent anti-smuggling campaign as a turning point that helped traders understand the benefits of compliance.
“Not everyone understood the blitz, but I think the first people to understand were the traders themselves, which is why they were quick to seek their papers and trade in peace,” he said.
“You can go into all those little shops and you’ll find that they are trading within the laws of the local authority, within the laws of the country, in terms of taxation and so forth and so on, the health requirements and so on.”
Mr Nyoni highlighted plans to expand safe trading spaces. He pointed out to a forthcoming SME centre on 11th Avenue, developed in partnership with the Ministry of Women Affairs, Community, Small and Medium Enterprises Development and the International Labour Organisation, which will focus on women traders.
“This is fine, a safe trading place where they can do some of that work we’re talking about that is required by the big corporations that they are self-contracting,” said Mr Nyoni.
Expressing optimism about the future, the Permanent Secretary framed recent achievements as a foundation for further growth under the National Development Strategy 2.
“We have no reason to think that we will fail in NDS2, we will actually double that capacity and ensure that everyone on the street can trade,” he said.
Meanwhile, Mr Nyoni also praised the pivotal role of public-private partnerships in the province’s development, especially in providing serviced stands for residents.
“We did well in the provision of serviced stands and thanks to PPP. When we started, I remember challenging the city authorities when we reviewed the number of serviced stands that had been provided over the previous five years,” he said.
“Then we explored and they ultimately, in their wisdom, after all the discussions, agreed to do PPPs and you know that we continue to be one of those large cities that provide serviced stands rather than pushing unserviced land and then creating new problems.”
The reach of PPPs extends beyond housing. Mr Nyoni pointed out to their impact on the National Railways of Zimbabwe, where refurbishments of wagons and locomotives are carried out through such partnerships.
“A lot of the refurbishments of wagons and locomotives that happen is based on PPPs where the customer requires a certain capacity and that capacity is provided through those relationships and you settle as you go forward,” he said.
These collaborations also cross borders, involving sister rail systems in Botswana and Mozambique to enhance regional connectivity.
“There are PPPs even with their sister rail systems in Botswana and Mozambique where you say let’s do this and we’ll do it like that and so forth,” said Mr Nyoni.
Looking to future infrastructure projects, he revealed that the National University of Science and Technology is seeking a PPP partner to develop a mini solar power station.
Similarly, the Bulawayo City Council is searching for partners to support power stations for its pumping stations and to manage the city’s solid waste dump, a pressing environmental concern.
“The PPP area needs to be explored, expanded and improved because it has worked well,” Mr Nyoni said.
He emphasised the importance of collaboration between Government, the private sector, and development partners to sustain Bulawayo’s economic momentum.
