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Charity Ruzvidzo Business Reporter
THE process of formalising the operations of small and medium enterprises (SMEs) in Bulawayo has started with their associations given up to the end of the month to register their members.Small and Medium Enterprises and Cooperative Development Minister Sithembiso Nyoni on Tuesday directed the informal sector leadership in the city and the local authority to start registering SMEs and players in the informal sector.
Nyoni gave the directive at a meeting with SMEs and informal traders in Bulawayo to discuss the registration and formalisation of their operations given the sector’s significance to the economy.
“Bulawayo informal traders and SMEs leadership here should go out and register all their members.
“By end of January we must have the number of SMEs registered and willing to pay tax to the Zimbabwe Revenue Authority (Zimra).
“We want to have an organised system. We don’t want to have people referred to as informal traders anymore. It doesn’t bring dignity, they should be called micro enterprises,” she said.
Nyoni said the process of registering would enhance security to SMEs and informal traders operations.
“Registering will bring protection to SMEs who’re constantly being brutalised by the police. They will also be able to grow as it will become easier for them to access loans from banks,” she said.
Nyoni also directed the Bulawayo City Council to start creating working spaces for SMEs.
“The city council should start planning and creating working space for SMEs. The process should also include the informal traders. We want council to give them working spaces where they also agree to work in.
“Meanwhile, municipal police must now direct their energy towards protecting vendors instead of chasing and harassing them,” she said.
Nyoni said her ministry would lobby Zimra to charge SMEs low tax rates.
At least $7 billion is estimated to be circulating outside the formal banking sector and most of it is believed to be held by SMEs.
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