Chronicle Editor
Natasha Chamba, Business Reporter
THE Confederation of Zimbabwe Industries (CZI) says small to medium enterprises (SMEs) can play a significant role in reducing the country’s import bill and saving the scarce foreign currency for the benefit of the economy.
CZI president Mr Sifelani Jabangwe said budding entrepreneurs, who employ thousands of people across sectors, have the potential to help the country address the challenge of externalisation by manufacturing locally what the country imports.
“Entrepreneurs have the potential to unlock the economy by breaking down the import basket. It will not only benefit them but also benefit the country, which needs to hold on to its foreign currency by all means necessary rather than to externalise it,” he said.
Mr Jabangwe said Zimbabwe has a chance to reclaim its bread basket status in Africa and implored SMEs to harness existing opportunities in agriculture and mining to grow the economy.
Before 2000 the agriculture sector contributed over 60 percent of raw materials to agro-industries, with more than 70 percent of Zimbabweans deriving their livelihoods from farming. Instead of importing goods like toothpicks and floor polish entrepreneurs can make these locally and the country can save money.
“SMEs have the potential to manufacture what the country is importing. They should look at what was consumed last year because it will likely be consumed this year,” he said.
“Instead of the country importing almost everything, the country through innovative entrepreneurs, can be in a position to export rather than import.”
Mr Jabangwe said the issue of imports was causing corporates to close or downsize and SMEs to shrink as they become less competitive with rising imports.
Meanwhile, Mr Jabangwe urged SMEs to transform themselves from informality to formality and also that they must build a strong personal brand, which strategically increases their value in the marketplace.
He said a strong business plan that is very clear can also help them attract investors and that banks can easily assist them if they package their business plans well.
“For SMEs to unlock their potential they must move from informality to formality in the process building a strong personal brand, which then increases their value in the market place,” he said.
“The biggest problem for SMEs has been inadequate business plans. A business plan that is clear can go a long way in attracting investors for the business and also in getting financial aid from banks.”
Mr Jabangwe said a strong personal brand was a business asset and if structured properly it will attract the business that one wants and leverage their trade or services far above their competition. — @queentauruszw
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