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Herald Reporter
The national advisor to the Chamber of Small and Medium Enterprises (SMEs), Mr Last Matema, has advocated for the formalisation of business associations in Zimbabwe.
He underscored the importance of strict registration and accountability within these organisations, stating that they are crucial for the formalisation of individual SMEs.
“We cannot formalise the individual SMEs without formalising the business associations,” Mr Matema asserted.
Further, he noted that the chamber has formally reached out to the Minister of Small and Medium Enterprises, Monica Mutsvangwa, urging immediate action on this issue.
Mr Matema acknowledged the challenges posed by current budget allocations for the sector, indicating that while the funding provided is agreeable, it remains insufficient given the extensive informalisation within the micro, small, and medium enterprises (MSME) sector.
“The limited fiscal space is a direct result of the informal nature of many businesses,” he explained, stressing the need for collaboration with the parent ministry to address this challenge.
As part of their initiative, the Chamber is advocating for business associations to be mandated to register their members as micro, small, or medium enterprises.
Mr Matema proposed a clear classification system to categorise businesses as formal, informal, or semi-formal, thereby establishing a framework for improved accountability and governance.
One of the key motivations behind this push for formalisation is the potential for preferential treatment in Government regulations, including tax exemptions and opportunities in public procurement.
“We are pushing for such certification to be recognised, creating a ‘carrot’ for formalisation,” he stated, highlighting the benefits that could accrue to compliant businesses.
The Chamber of SMEs believes that this approach will not only enhance accountability within the sector but also promote a more structured and sustainable business environment.
As Zimbabwe heads towards the attainment of Vision 2030, the formalisation of SMEs could play a pivotal role in fostering continued growth and stability.
The call to action from the Chamber has resonated with various stakeholders, who see the potential benefits of a more organised SME landscape.
As discussions progress, the pressure is on both the Chamber and Government to collaborate in addressing issues affecting the sector.
Online Reporter