Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
THE Government has laid out plans to accelerate the growth and transformation of the Micro, Small and Medium Enterprises (MSMEs) sector in 2026, with a strong focus on skills development, financing, infrastructure and formalisation.
The initiative is in pursuit of inclusive economic growth, poverty alleviation and broad-based empowerment.
SMEs’ pivotal role in value addition, innovation, employment creation and resilience of local economies contributes over 60 percent of the country’s Gross Domestic Product (GDP) and provides livelihood to more than 70 percent of the working population, particularly youths and women.
This also comes following the release of empirical evidence by the Zimbabwe National Statistics Agency (ZimStat), confirming the dominance of MSMEs in the domestic economy, most of which operate in the informal segment of the economy.
Data from ZimStat’s Zimbabwe Economic Census 2025 indicates that 76,1 percent of businesses in the country are informal, predominantly in wholesale and retail trade.
According to the 2026 Budget Strategy paper, presented by the Ministry of Finance, Economic Development and Investment Promotion, the Government plans to have a minimum of 60 000 MSMEs benefiting from business development training delivered across all provinces and to train at least 30 000 cooperators across all provinces.
“Government will, therefore, accelerate the implementation of targeted policy measures to support the sustainable growth and transformation of MSMEs in line with NDS2 and the broader vision of becoming an Empowered and Prosperous Upper-Middle-Income Society by 2030,” reads part of the document.
The strategy paper acknowledges that a major challenge confronting MSMEs has been limited access to affordable and patient capital, especially for enterprises operating in productive sectors requiring significant investment in equipment, technology and working capital.
“To address this, Government will facilitate private sector financing in order to complement budgetary support to the Small and Medium Enterprises Development Corporation (SMEDCO).
“This enhanced financing facility will enable MSMEs to modernise their operations, expand productive capacity and actively contribute to industrialisation for import substitution in line with the country’s long-term economic transformation agenda.”
Recognising that finance must be matched with skills, the Government will intensify capacity building and training initiatives.
“In 2026, a minimum of 60 000 MSMEs will benefit from business development training delivered across all provinces.
“These programmes will cover essential skills including costing, marketing, record keeping, entrepreneurship, product development, branding, stock control and quality assurance aimed at equipping entrepreneurs with the managerial and technical competencies required to build sustainable businesses capable of withstanding economic shocks and competing in both local and export markets.”
In addition, the Government will provide advisory support to at least 5 000 start-ups focusing on taxation, procurement procedures, financial literacy, insurance and business registration.
The director of the Bulawayo Vendors and Traders Association (BVTA), Mr Michael Ndiweni, underscored the need for robust Government support to accelerate the growth of small enterprises, which are the backbone of the national economy.
Mr Ndiweni said small and medium enterprises (SMEs) play a critical role in national development, contributing nearly three-quarters of the country’s Gross Domestic Product (GDP).
“These programmes are very important because when the Minister of Finance issued the national budget statement, he made it clear that almost 76 percent of our GDP comes from the micro, small and medium enterprises,” said Mr Ndiweni.
He noted that with adequate training, policy support and access to capital, SMEs had the potential to transform into large companies capable of competing on both regional and global markets.
“So obviously these enterprises need support so that they even grow into fully fledged companies.
“The training programmes and the support that the Government is promising in the national strategy are very welcome and strategic because we want to see these companies growing, competing with multinational corporations and even establishing operations beyond our borders,” he said.
Mr Ndiweni stressed that training and empowerment programmes would be critical in ensuring SMEs adapt to the evolving business environment and seize opportunities brought by regional integration.
“In light of the African Continental Free Trade Area (AfCFTA), such trainings are very important because they unlock opportunities across the continent. If we capacitate our SMEs, they can take advantage of this framework and position Zimbabwe as a strong player in continental trade,” he said.
The Government said it would continue to promote domestic, regional and international market access by facilitating MSME participation in trade fairs, exhibitions, buyer-seller platforms and bilateral trade missions.
“To address challenges associated with informal and inadequate working spaces, the Government will step up investment in MSME infrastructure development utilising the Mbare Musika Market Redevelopment Model.
“Government will support the construction of Glen View Area 8 Furniture Market and MSME workspaces across the country in partnership with local authorities and private investors, leveraging PPPs under models such as Build-Operate-Transfer (BOT) and Build-Own-Operate-Transfer (BOOT).”
The programme will be scaled up to deliver at least one new MSME workspace in each of the 10 provinces. These will include factory shells, industrial hubs, vendor marts and roadside market stalls to provide dignified, affordable and accessible work environments.
Formalisation of MSMEs remains a top priority, not only to improve access to finance and services but also to enhance the quality of national economic data.
“Following the findings of the National MSME Survey which showed that only 14.3 percent of the 3.4 million MSMEs are formally registered, the Government will intensify efforts to support business registration, with a target of facilitating the registration of 5 000 MSMEs in 2026.
“Simplification of procedures, reduction of associated costs and continued public education will form part of this drive.”
Alongside MSME support, the Government will strengthen the cooperative model as an inclusive and sustainable economic vehicle.
“Efforts will be made to improve the capacity of cooperatives through extensive training in cooperative principles, governance, financial literacy, value chain development and collective marketing.
“The target is to train at least 30 000 cooperators across all the provinces, with a focus on both pre- and post-registration support to ensure effective governance and sustainability of cooperative operations.”
Through these measures, the Government said it was determined to position MSMEs and cooperatives at the centre of industrialisation, job creation and broad-based empowerment, while driving the country towards Vision 2030.
