Online Reporter
Sikhulekelani Moyo, Business Hub
MICRO, Small, and Medium-sized Enterprises (MSMEs) play a vital role in economic development and Bulawayo is taking significant steps to foster the growth of this sector, as part of its broader industrialisation and re-industrialisation agenda.
Over the years, MSMEs have made a substantial contribution to Zimbabwe’s economy, directly employing over 70 percent of the population and contributing 60 percent to the Gross Domestic Product (GDP).
To ensure the full participation of MSMEs in Bulawayo’s industrialisation drive, the Bulawayo City Council is implementing various programmes aimed at enhancing productivity and competitiveness within the sector.
Speaking in a post-Zimbabwe International Trade Fair (ZITF) 2025 interview, the city’s economic development officer, Mr Kholisani Moyo, noted that several initiatives have already been launched, particularly targeting MSMEs in the manufacturing sector.
He said that while Bulawayo is experiencing growth in wholesale and retail, long-term GDP growth would require a revitalised manufacturing base.
During this year’s ZITF, the city showcased the untapped potential within the MSME sector.
“As a local authority, we created a platform that brought together organisations such as the Zimbabwe Revenue Authority, to explain various tax incentives and obligations. We also engaged institutions like the Research Institute of Zimbabwe and experts on intellectual property rights, to assist SMEs in safeguarding their innovations,” said Mr Moyo.
“From the City Council’s perspective, we are now focused on providing workspaces and introducing policies that support SMEs. For instance, for SMEs involved in commodity broking, we have implemented the lettable units policy.
“These lettable shops sell various commodities, and we are asking: where are these goods sourced from? We want them to be produced locally. That’s why we are now focusing on factory shops, ensuring space is allocated to small-scale manufacturers.”
These interventions are expected to significantly enhance the contribution of small businesses to the city’s economic sustainability, while also creating decent employment opportunities.
Mr Moyo said given Bulawayo’s historical role as Zimbabwe’s industrial hub, property owners with vacant factory shells in industrial areas could renovate and convert them into small production units for SMEs across various sectors.
He highlighted the clothing and leather industries as key drivers of the local economy, adding that these sectors include viable small players, who could benefit from being housed in such facilities, producing goods for both domestic and export markets.
“Bulawayo’s economy has traditionally been based on manufacturing, not just wholesale and retail. For economic growth, we need to return to production,” he said.
“We are encouraging SMEs to venture more into manufacturing. Retailing has increased, and we have addressed this by introducing lettable shops. However, we now want these shops to stock locally manufactured goods.”
“For example, along Khami Road, we have leather manufacturers operating in clusters. These businesses need suitable workspace, and this is where we come in — negotiating with companies and making land available so they can produce for the local and wider markets.”
Mr Moyo added that the City Council has also approached property owners currently renting premises to churches, suggesting that they could subdivide their buildings to accommodate SMEs in sectors such as leather and clothing.
Responding to these developments, Bulawayo Chamber of SMEs Co-ordinator, Mr Nketa Mangoye Dlamini, said the sector has tremendous potential to transform the city’s commercial and industrial landscape.
He stressed the need for deliberate, well-structured policy interventions to support the growth of MSMEs.
“For instance, if we commit to developing 20 to 30 high-potential SMEs across various sectors in Bulawayo, and provide them with proper funding and support, they can act as models for others,” said Mr Mangoye.
He recommended aligning such efforts with the National Development Strategy 1 (NDS 1), which identifies key value chains by province, in Bulawayo, these include leather, clothing, iron and steel, among others.
“As a country, we need a deliberate policy approach. Yes, these SMEs are private entities, but their success has a broader public benefit, contributing to both city and national development.”
He also emphasised the need for affordable financing, noting that many SME operators are former industry workers, who possess skills but require capacity-building support to become sustainable and resilient.
Mr Mangoye also highlighted the importance of decent workspaces, including considerations such as hygiene and gender-sensitive facilities to boost productivity.
“If we want to increase productivity, we should consider the needs of women, who are also carers. For example, can we provide play areas for their children at their workplaces? We need to adopt best practices like those seen in Japan,” he said.
“This cannot be an individual initiative, it must be part of a co-ordinated national and local plan. The City of Bulawayo needs a strong, deliberate strategy to industrialise and nurture leading SMEs.”
Meanwhile, Mr Mangoye praised the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP) 2024–2025, saying its focus on SME development, including tackling challenges such as market linkages and high operational costs, is essential for the country’s progress.
He urged policymakers to introduce further policies that support the growth and resilience of local industries.
