Online Reporter
Nkosilathi Sibanda
THE contribution of small to medium enterprises in the growth of the economy cannot be underestimated, and financial institutions must support these businesses, as they are the backbone of the economy.
This was said by the Chief Executive Officer of the People’s Own Savings Bank (POSB), Mr Garainashe Changunda at the POSB SMEs seminar in Bulawayo on Friday.
The seminar ran under the theme “Driving Inclusive Growth: Unlocking SMES Potential” to which Mr Changunda said reflected POSB’s shared commitment to empowering small and medium enterprises as engines of economic transformation.
He said the convention follows up on another business gathering organised by POSB in Harare in May, which dealt with essentials affecting exporters. Mr Changunda said from the Harare meeting, they received valuable recommendations to conduct seminars with SMEs, as they were the lifeblood and backbone of the country’s economy.
“Across the country, SMEs contribute an estimated 60 percent of our GDP and employ over 50 percent of the workforce. SMEs serve as the foundation of household incomes, especially in communities where formal employment is limited. They are drivers of innovation, job creation, and inclusive economic participation, providing livelihoods for youth, women, and marginalised groups, while also anchoring supply chains for larger enterprises,” said Mr Changunda.
“From rural development and poverty reduction, to creating platforms for social inclusion and economic resilience, SMEs foster economic growth. Simply put, the success of SMEs is the success of Zimbabwe.
“That is why we are gathered here today: to foster collaborations, to listen, to learn, to share, and to build an enduring SMEs sector. As POSB, we are committed to supporting SMEs throughout their growth journey, by providing tailored financial solutions that meet their unique needs, recognizing that no two businesses are the same. We offer various financial solutions, from SMEs accounts, SMEs loans, POS machines, among other products and services.”
Mr Changunda revealed that they will continue to network with SMEs with the goal of encouraging businesses to embrace global standards, in particular on funding and migrating into the digital space in marketing products.
“Our goal is to facilitate discussions on SMEs funding, digital transformation, to discuss opportunities and challenges in the SMEs sector and business sustainability. And most importantly, to create a space for open dialogue, where voices are heard, to help shape the future of the SME industry and support in Zimbabwe,” he said.
With 120 years in the banking and financial sector, Mr Changunda said the POSB it was their mandate to support Government in advancing crucial matters in growing the economy and promoting SMEs.
“As a financial institution celebrating 120 years of transforming livelihoods in Zimbabwe, we are also fully aware of the challenges this critical sector faces, including but not limited to a lack of access to finance, insufficient training and mentorship, and an increased informalisation of the sector.
“POSB believes that addressing these challenges is not a task for government alone. It requires collective efforts from all sectors, including financiers, regulators, suppliers, and the SMEs themselves and that is why this seminar is so important to us.
At the seminar, a series of talks by experts was delivered by the Chamber of SMEs, who touched on entrepreneurial development. The country’s trade facilitation arm, ZimTrade, offered guidance on local and foreign market identification, the African Continental Free Trade Area (AfCFTA) and market linkages. There was also a presentation from the city of Bulawayo on and licensing and registration. Financial inclusion and the need to use banks for business advice were delivered by the Reserve Bank of Zimbabwe.
Officiasl from the Zimbabwe Revenue Authority (ZIMRA), gave valuable information on customs duties, domestic tax obligations, and SMEs’ incentives.
