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Ivan Zhakata Herald Correspondent
Micro, small and medium enterprises occupy a strategic position in the achievement of vision 2030 and according to the recently held 2021 MSME survey and the Finscope MSME 2022 survey, there are 3,4 million MSME employing 4,8 million people and contributing US$8,6 billion to the gross domestic product.
Permanent Secretary for Women Affairs, Community, Small and Medium Enterprises Development Mr Moses Mhike told the business risk management and insurance workshop for the MSME and cooperatives sector in Harare yesterday that Government through the National Development Strategy 1 (NDS1), had also recognised the emergence of the MSME sector in fostering economic growth.
Under the devolution thrust, MSMEs were significantly contributing to the provincial GDPs as they constitute the majority of business in the country’s 10 provinces.
“The sector has become a key vehicle for sustainable socio-economic transformation through value chains in the manufacturing, agro processing, chemical, retail and construction sectors among others.
“As the nation continues to experience rapid growth in the sector, numerous challenges including limited access to finance, inadequate and costly workspaces, informalisation, and lack of business management skills which includes business risks vigilance have been identified as major challenges limiting sustainability and growth of the sector. You will all agree with me that risk management and insurance are key and essential business aspects MSMEs are aware of, but usually neglect,” Mr Mhike said.
“This workshop therefore comes amid realisation that MSMEs must develop sound risk management programs and utilise appropriate risk transfer mechanisms in order to protect their businesses and enhance their opportunity for business sustainability.
“To mitigate the highlighted challenges, the Ministry is engaging development partners and key institutions pivotal to MSME development with a view to forge partnerships for implementation of programmes for sustainable growth of the sector.”
Mr Mhike also applauded Champions Insurance Company for partnering the Ministry to unmask and demystify business risk as well as coming up with tangible initiatives towards MSME tailor-made risk management and insurance products. He said the products would be helpful in hedging MSMEs against losses from specific contingencies or perils.
“I am happy that this inaugural workshop today will pave way for other workshops in the remaining nine provinces. Henceforth, risk management will be a key component as we roll out capacity building programmes for MSMEs and cooperatives,” Mr Mhike said.
The workshop was aimed at identifying and discussing the key gaps and challenges in mitigating risks that increase the mortality rate of enterprises and maintain a sense of financial confidence in the face of significant vulnerability.
Online Reporter