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Business Editor
BULAWAYO hosts the 2016 national small to medium enterprises (SMEs) conference starting tomorrow with several Cabinet ministers scheduled to lead the crunch discussions.
SMEs are fast becoming a critical economic force in Zimbabwe and the world over with an estimated 5.7 million locals working in the informal sector in which $7.4 billion is circulating, according to a study by FinScope.
However, numerous hurdles frustrate its growth with the government also losing millions in potential revenue due to high levels of informality in the sector.
Economic experts, academics, mining executives, financiers and scores of SME operators will engage the policy makers in the two-day conference to be held at a city hotel starting tomorrow morning.
The ministers include Finance and Economic Development Minister Patrick Chinamasa, Local Government, Public Works and National Housing Minister, Saviour Kasukuwere, Agriculture Mechanisation and Irrigation Development Minister, Joseph Made, Mines and Mining Development Minister Walter Chidhakwa, Industry and Commerce Minister Mike Bimha and Zimbabwe Investment Authority chairman Nigel Chanakira.
Most SMEs in Zimbabwe struggle with registration, financial inclusion and access to finance, labour formality, marketing and marketing linkage and operating space.
Over 50 percent of these operate from homes and undesignated areas.
“This situation has made it difficult to expand their businesses. As a result MSME owners usually work long hours but have low levels of income,” said Gift Mugano, an economist and trade expert.
The ministers will make presentations on critical issues related to their portfolios which affects the operations of small businesses and stifle investment.
“The ministry in collaboration with the National Chamber of SMEs will be conducting a conference at Bulawayo Rainbow which will culminate in MSMEs graduation and awards ceremony from 30th to 31st March 2016,” the ministry said in a statement.
A majority of small businesses are not paying tax due to high levels of informality in their operations given the negative relations with both local and central government.
Small to Medium Enterprises and Cooperative Development Minister, Sithembiso Nyoni, will deliver the opening remarks and lead the delegation in a tour of selected companies in the city.
Bulawayo Provincial Minister of State, Nomthandazo Eunice Moyo, will make a concept presentation on “building bridges for economic development”.
Mayor Councillor Martin Moyo will lead a discussion on building workspaces for SMEs while tax specialist, Josephine Matambo, will focus on taxation issues.
The deliberations also include a session on harnessing financial products suitable for SMEs and strategies on working capital.
Online Reporter