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Business Reporter
MORE than 20 small to medium scale enterprises (SMEs) have secured work and display space from one of Old Mutual’s properties in Bulawayo.
The SMEs who are into clothing, leather and printing sectors occupied the property at Unit “2a” and “B” OK Mart premises under the Bulawayo Chamber of SMEs, an affiliate of the Zimbabwe National Chamber of SMEs.
SMEs Development Trust board member Mr Energy Majazi told Business Chronicle yesterday that the Old Mutual property, which measures 1 323 square metres has the capacity to accommodate about 33 SMEs.
“At present, there are 21 SMEs occupying the property at OK Mart that we negotiated with Old Mutual for the provision of work and display space for our members.
“It is our hope that as we get into next year, the premises would have been filled up,” he said.
One of the considerations taken into account by Old Mutual before allowing a tenant to occupy the work and display space is that the potential tenant should ensure that the business he or she operates is legally registered.
Since last year the Government through the Ministry of Small to Medium Enterprises and Co-operative Development has been on a crusade to facilitate formalisation of the informal sector.
This follows a realisation that Zimbabwe’s tax base was shrinking as companies in the formal sector were either downsizing or closing shop resulting in the SMEs sector taking over as the country’s biggest employer.
In November, SMEs and Co-operative Development Minister Sithembiso Nyoni said the formalisation of SMEs was at an advanced stage.
According to a Finscope Micro, Small and Medium Enterprises (SME) Survey, 2012, in Zimbabwe, there are 2,8 million SME owners employing 2,9 million people, translating into 5,7 million people dependent on the sector, contributing more than 60 percent to the Gross Domestic Product.
It is also believed that over $5 billion is circulating in the informal sector as the economy was now biased towards the informal industry.
@okazunga.
Online Reporter