Govt appreciates SMEs

Precious Masakara

The Government appreciates the role played by Micro, Small and Medium Enterprises (MSMEs) in the country’s development, the Minister of Women Affairs, Community, Small and Medium Enterprises Development, Dr Sithembiso Nyoni, has said.

She said this at the launch of MSME policy review and stakeholder consultations held in Harare Wednesday.

Minister Sithembiso Nyoni is flanked by the UNDP Economic Advisor, Mr Amarakoon Bandara (left) and head of delegation of the European Union to Zimbabwe, Ambassador Timo Olkkonen at Wednesday’s policy review launch

The policy review comes at a time when the Government is laying the foundation for future economic developments for the country through the Transitional Stabilisation Programme (TSP), which aims to attain an upper middle income economy by 2030, and where SMEs are expected to play a crucial role.

“The Government takes cognisance of the crucial role being played by Micro, Small and Medium Enterprises in the country’s development. Over the last two decades, the MSME sector has emerged as a highly vibrant and dynamic sector of our economy,” said Dr Nyoni.

“Not only do MSMEs provide employment opportunities at comparatively lower capital cost than large industries but they also facilitate industrialisation of rural areas thereby reducing regional imbalances and in turn assuring more equitable distribution of national income and wealth,” she added.

Minister Nyoni said SMEs are expected to contribute in economic development. “Under the decentralisation and devolution thrust, SMEs are expected to play a vital role through creating employment opportunities, rural industrialisation and better usage of local resources thereby contributing significantly to the nationwide economic development,” she said.

Minister Nyoni said it is important that there be an enabling environment to allow the MSME sector to realise their full potential hence the policy reviews to ensure that the policies address the needs of the sector in the dynamic business environment.

The MSME Policy Framework (2014-18) has seen SMEs benefit.

“As we review the MSME Policy Framework (2014-18) we need to take stock of the successes registered in the past. I am aware that considerable progress was made in the implementation of the previous policy where SMEs benefited from the implementation of capacity building programmes such as managerial and technical skills training, market access, business linkages, establishment of technology and common facilities, funding through SMEDCO and Reserve Bank facilities.”