Online Reporter
Trust Freddy
Herald Correspondent
GOVERNMENT has directed the Small and Medium Enterprises Development Corporation to pursue aggressive recapitalisation and develop new financing products to close the funding gap facing micro, small and medium enterprises.
Speaking at SMEDCO’s 5th Annual General Meeting in Harare yesterday, Women Affairs, Community, Small and Medium Enterprises Development Minister Senator Monica Mutsvangwa said demand for SMEDCO services now far outstrips available resources.
“The greatest challenge facing SMEDCO today is not demand for its services,” she said.
“As underscored by stakeholders at the recently held inaugural SME and Cooperatives Indaba, the demand for SMEDCO’s services far exceeds the resources currently available, highlighting the need to build a financially sustainable institution capable of meeting that demand without compromising its developmental mandate.”
Sen Mutsvangwa said the board must move beyond reliance on Treasury funding and target concessional capital from multilateral institutions, pension funds, climate finance facilities, impact investors and the diaspora.
“The first priority must, therefore, be institutional recapitalisation. The board should pursue an aggressive capital mobilisation strategy that goes beyond traditional Government appropriations.
“Greater emphasis should be placed on attracting concessional funding from multilateral institutions, pension funds, climate finance facilities, impact investors, diaspora investment vehicles and blended finance arrangements. Government, through my Ministry and the Ministry of Finance, Economic Development and Investment Promotion, will continue supporting these efforts.”
She also presented SMEDCO’s 2025 Annual Report and Audited Financial Statements, commending the corporation for complying with the Public Entities Corporate Governance Act and upholding transparency.
SMEDCO, the Minister said, must transform into a fully-fledged MSME development finance institution by packaging finance with business development support, technology, market access, incubation and mentorship.
She urged the board to roll out innovative products, including equipment leasing, invoice discounting, value-chain financing and export finance, to de-risk lending and widen access to capital.
To strengthen sustainability, Minister Mutsvangwa called for tighter credit risk management, improved loan recoveries and the use of digital tools for real-time portfolio monitoring.
“Government remains committed to industrialisation and value addition. I expect SMEDCO to align financing towards manufacturing, agro-processing, mining services, renewable energy and technology-based enterprises,” she said.
SMEDCO board chairperson Dr Charity Kadungure said the corporation would continue strengthening its role in supporting small businesses to drive employment and economic empowerment.
“Through your efforts, SMEDCO continues to support the growth of small and medium enterprises by providing financial and non-financial services that promote business growth, employment creation and economic empowerment,” Dr Kadungure said.
“Our work remains aligned with Vision 2030 and the National Development Strategy 1, which recognise the critical role of entrepreneurship, financial inclusion, industrialisation and private sector-led growth in achieving sustainable economic development.
“As such, SMEDCO will continue to strengthen its contribution towards building a vibrant and competitive SME sector. While the operating environment continues to evolve, we remain focused on strengthening institutional sustainability, enhancing service delivery, embracing innovation and expanding strategic partnerships to ensure that SMEDCO remains responsive to the needs and aspirations of entrepreneurs and the nation.”
SMEDCO is a Government-owned development finance institution established to support the growth of micro, small and medium enterprises through financing, infrastructure provision and capacity-building.
The institution operates under the Ministry of Women Affairs, Community, Small and Medium Enterprises Development.
