‘MSMEs have central role to play’

Canditar Chapanduka, Business Reporter

The micro, small and medium enterprises (MSMEs), which contributed US$8,6 billion to the gross domestic product in 2022 has a critical role to play in the attainment of the 2030 Agenda for Sustainable Development and African Union Agenda 2063, Secretary for Women Affairs, Community, Small and Medium Enterprises Development Mr Moses Mhike has said.

He said the ministry is taking part because MSMEs have a central role to play in the achievement of the 2030 Agenda for Sustainable Development and the African Union Agenda 2063.

Globally, MSMEs make a significant contribution to economic growth and sustainable development as they represent about 90 percent of businesses and over 50 percent of employment that later contributes up to 40 percent of national income (GDP) in emerging economies.

It is for this reason that the Government under the Second Republic recognises the role played by the sector and availed resources to upscale its growth.

Speaking during a capacity building workshop in Bulawayo this week, Mr Mhike said according to the 2021 MSMEs survey, there are 3,4 million MSMEs operating in the country employing 4,8 million people on full time basis.

He said with such a huge absorption of people, the sector promotes inclusive and sustainable economic growth, increases employment opportunities and decent work especially for women and youths.

“The sector is playing a critical role in Zimbabwe under the decentralisation and devolution thrust as it significantly contributes to balanced development as MSMEs are found in both rural and urban areas,” he said.

Mr Mhike said Government with support from United Nations Department of Economic and Social Affairs ( UNDESA) was prioritising the development of a results oriented  Monitoring Framework for timely tracking of MSMEs contribution to the economy under the Revised National MSMEs policy (2020-2024).

He however, said MSMEs face challenges which include low productivity and competitiveness due to use of antiquated technologies and aging equipment, high cost utilities and lack of entrepreneurial skills among others.

“These challenges have been compounded by global shocks such as the Covid-19 pandemic, geopolitical tensions and climate change,” said Mr Mhike.

He said Government was training MSMEs with a focus on women and youth including people with disabilities to enable them to manage their business efficiently and become resilient in times of shocks.

“I hope you will find the business management training useful to your businesses and will transform your business operations,” said  Mr Mhike.

Government’s thrust is to develop backbone infrastructure through promoting partnerships and the Ministry of Women Affairs is collaborating with local authorities, development partners and the private sector in development and provision of workspaces for MSMEs under various models.

Under the National Financial Inclusion Strategy, the Ministry in collaboration with the Reserve Bank of Zimbabwe, has implemented several initiatives aimed at improving MSMEs financial inclusion.

“To improve market access, MSMEs are being supported through raising awareness of available local, regional and international market opportunities including using digital platforms such as the 50 Million Women Speak.

“They are also being supported to participate at ZITF, Zimbabwe Agricultural Show, provincial and district fairs,” said Mr Mhike. — @NomqheleC