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(SMEs).
The absence of a clear distinction of an SME has frustrated Government efforts to channel support to the sector with Finance Minister Tendai Biti recently saying difficulties in defining the entities was delaying disbursement of a US$15 million support facility.
Small and Medium Enterprises and Co-operative Development Minister Mrs Sithembiso Nyoni said that promulgation of the law was in line with international best practices.
“The Government has just finished drafting a Bill that defines Small and Medium Enterprises (SMEs). Every country has that law,” she said.
Minister Nyoni said the Bill included a scale defining SMEs according to the net assets value, staff turnover and income-generating capacity. She added that the Bill would be tabled before Parliament next week.
“The Bill has a scale that categorises and distinguishes SMEs on the basis of their asset value, income and staff members,” the minister said, noting that the legal instrument would enhance the operations of players in sector.
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At least 70 percent of the Zimbabwean population derives a living from the SMEs sector through an estimated three million projects.
Last year, SMEs raked in an estimated US$100 million as it recovered from the economic contraction of the past decade.
However, the absence of long-term funding facilities, which has precipitated the liquidity crunch affecting most sectors of the economy, has kept SMEs on a sluggish growth trajectory.
Analysts say the sector requires US$50 million in the short term to expand operations. – New Ziana.
Online Reporter