Chronicle Editor
The Zimbabwean government has reiterated its commitment to promoting the growth and development of the country’s Micro, Small and Medium Enterprises (MSMEs) sector, which accounts for over 60 percent of the nation’s economic activity.
Speaking at the ZB Financial Holdings SME Expo in Gweru yesterday, director of economic affairs in the Ministry of Women Affairs, Community, Small and Medium Enterprises Development, Mr Kosheni Mtisi who was representing Deputy Minister Dr Jennifer Mhlanga, highlighted the crucial role that SMEs play in Zimbabwe’s economy.
“MSMEs are significantly contributing to employment in the country with 4,8 million people employed on a full-time basis and contributing $7,8 billion to GDP,” she said, citing recent surveys.
However, the deputy minister acknowledged that the sector faces a number of constraints, including lack of business management skills, limited access to markets, workspace and affordable finance. She noted that some lenders view SMEs as high-risk due to a lack of collateral, making it difficult for them to secure the capital they need to invest, expand and compete.
To address these challenges, the Government, through the Ministry of Women Affairs, Community, Small and Medium Enterprises Development, is implementing several interventions.
These include supporting access to finance through various empowerment funds and promoting the development of Savings and Credit Co-operatives (SACCOS) as alternative sources of funding for small businesses.
Government is also facilitating access to markets for MSMEs in collaboration with ZimTrade by enabling their participation in local, regional and international exhibition and trade promotion events.
In addition to providing business and technical skills training to empower MSMEs in managing and expanding their businesses, Government is helping MSMEs partner with standards bodies to promote the adoption of standards and product certification to improve the safety, quality and competitiveness of MSME products in local, regional and international markets.
It is also facilitating the formalisation of MSMEs through business registration in collaboration with the Registrar of Companies. Registering, training and developing various co-operatives in the country is another key area.
“We will continue to step up our initiatives to facilitate access to finance for MSMEs and other business development support services,” the Deputy Minister assured. “We will also keep on encouraging MSMEs to embrace financial inclusion through the use of banking services as it increases the deposits available for lending,” said the Deputy Minister.
The ZB Financial Holdings SME Expo, held under the theme “Accelerating SME growth through Financial partnerships,” provided a platform for stakeholders in the MSME sector to enhance access to financial and other business development support services.
Dr Brilliant Shumba, the chief customer experience officer of ZB Holdings, has said the event demonstrated the company’s commitment to supporting the Government’s efforts in promoting the development of the MSME sector.
“This initiative demonstrates our brand promises to ‘make us smile’ as it has a positive impact on the advancement and expansion of the MSMEs sector,” he said. “Indeed, beneficiary SMEs are happy and smiling.”
The expo offered various resources and opportunities for the participating SMEs, including financial literacy training, exploration of funding avenues, interaction with financial institutions, and understanding the importance of sustainability and access to new markets.
Deputy Minister Mhlanga called on the corporate sector to intensify their efforts in collaborating with MSMEs to tackle the challenges they encounter, particularly access to affordable funding.
“To the MSMEs, I commend you for your resilience in overcoming the various challenges you face in your business. I assure you that as Government, we recognise these challenges and are committed to creating a conducive environment for your businesses to prosper,” she said.
The Deputy Minister also commended ZB Holdings for organising the significant event and called on other stakeholders to follow the company’s lead in implementing strategies to support the development and growth of the MSME sector.
“Through partnerships, we can address the challenges faced by SMEs, unlock their growth potential, and empower them to become the engines of our economy.
“Let us work together to build a collaborative ecosystem that fosters the development and success of our nation’s SMEs,” she concluded.
Online Reporter