Online Reporter
Sikhulekelani Moyo, [email protected]
A STAGGERING 90 percent of Zimbabwe’s micro, small and medium enterprises (SMEs) are unaware of the trade agreements the country has signed with regional and international partners, a knowledge gap that is costing businesses valuable opportunities to access larger markets and grow their exports.
Industry stakeholders say thousands of small businesses that could be supplying goods beyond Zimbabwe’s borders remain confined to local markets, largely because they lack information on how to take advantage of preferential trade arrangements available under agreements such as the Southern African Development Community (SADC)
Trade Protocol, the Common Market for Eastern and Southern Africa (COMESA) Trade Protocol and the African Continental Free Trade Area (AfCFTA).
In an interview, Bulawayo Chamber of Small and Medium Enterprises programmes coordinator Mr Nketa Mangoye Dlamini said lack of awareness remains one of the biggest barriers preventing SMEs from expanding into regional and international markets.
“It becomes my duty, it becomes the media’s duty, it becomes each and every person’s duty to use our ways of sharing information across the country to economic players and SMEs,” he said.
Mr Dlamini said many entrepreneurs are unaware that Zimbabwe has signed trade agreements that offer preferential access to markets across Africa and beyond.
“Many SMEs do not know that Zimbabwe has trade agreements with the European Union, within the SADC region and under AfCFTA. As a result, they are not taking advantage of opportunities that already exist,” he said.
To bridge the information gap, Mr Dlamini proposed the development of a simplified booklet outlining all trade agreements Zimbabwe has entered into and the benefits available to businesses.
“The booklet could be distributed free of charge during SME training programmes, company registration processes and tax payments through the Zimbabwe Revenue Authority,” he said.
Mr Dlamini also urged that information on trade agreements be made easily accessible online through Government websites, including those of the Ministry of Women Affairs, Community, Small and Medium Enterprises
Development, the Ministry of Industry and Commerce and the Ministry of Information, Publicity and Broadcasting Services.
“When we undertake training programmes, information on available trade agreements should form part of the curriculum so that SMEs understand the opportunities that are there for the taking,” he said.
He added that improved dissemination of information would encourage more businesses to venture into export markets, improve product standards and boost foreign currency earnings.
Mr Dlamini said increased awareness and utilisation of these agreements could help SMEs diversify their markets, increase exports and contribute significantly to national economic growth.
His remarks come at a time when the Government is intensifying efforts to position SMEs as key drivers of economic growth, employment creation and industrialisation under Vision 2030.
Recently, the Confederation of Zimbabwe Industries (CZI), in partnership with the Zimbabwe Revenue Authority (Zimra), held an engagement programme aimed at equipping businesses with practical knowledge on trade procedures, tariff classification and non-tariff barriers.
Zimbabwe Leather Development Council secretary Mr Jacob Nyathi described the engagement as highly beneficial, but called for more sector-specific training programmes to address the unique needs of different industries.
“We encourage Zimra to organise further interventions in the form of training and capacity-building programmes. These could be tailored to specific sectors to achieve greater impact,” he said.
Mr Nyathi commended Zimra for adopting a practical approach, saying the presentations were easy to understand and relevant to business operators.
Zimbabwe is a signatory to several regional and continental trade agreements designed to reduce tariffs, eliminate trade barriers and improve the competitiveness of local products.
Through the AfCFTA, Zimbabwean businesses have access to a market of more than 1,4 billion people across Africa.
The country also benefits from the SADC and COMESA trade protocols, which allow qualifying goods to enter member states at reduced or zero tariffs.
