Chronicle Editor
Judith Phiri, Business Reporter
THE Insurance and Pensions Commission (Ipec) has urged small to medium enterprises (SMEs) in the country to prioritise insurance coverage, highlighting its critical role in protecting assets and ensuring business continuity in the face of unforeseen challenges.
With 3,4 million SMEs operating in the country, employing 4,8 million people and contributing a significant US$8,6 billion to the Gross Domestic Product (GDP), according to recent surveys, the sector’s growth and resilience are crucial to achieving the United Nations’ 2030 Agenda for Sustainable Development and the African Union’s Agenda 2063.
By embracing insurance, SMEs can mitigate risks, enhance credibility, and safeguard their businesses for long-term success
In an interview, Ipec public relations manager Mr Lloyd Gumbo said SMEs were key contributors to economic growth and employment.
“Taking into account some incidents witnessed that saw property worth half a million United States dollars that was destroyed after one of Bulawayo’s popular flea markets known as KoMutize was razed down by fire and other cases, it is important for SMEs to be insured,” he said.
Last year, several fire disasters were recorded around Bulawayo where SMEs in different sectors lost their valuable wares, besides the Mutize incident there was also the once-thriving Mpopoma Outspan factory popularly known as Spamprekini incident among others.
In June this year, Bulawayo Auto Quip shopping mall also caught fire which was suspected to be due to an electrical fault.
Mr Gumbo said there was a need for SMEs to be aware of the importance of insuring or risk management so that they insure their wares.
“Working together with the Insurance Council of Zimbabwe and Ministry of Women Affairs, Community, Small and Medium Enterprises Development trainings are being rolled out to conscientise SMEs on the importance of risk management, particularly around insuring their wares so that in the event of any mishap insurance will then come in to protect them and help them to recover from losses,” he said.
Mr Gumbo said they trained Provincial Business Development officers from the Ministry of Women Affairs, Community, Small and Medium Enterprises Development in March and recently in July District Business Development officers from Bulawayo, Matabeleland North, Matabeleland South and Masvingo were trained in a train the trainer programme.
He said plans were underway to ensure the training is rolled out in all the provinces so that the officers will in turn train different SMEs on risk management issues in their respective jurisdictions.
Mr Gumbo further highlighted that only four percent of SMEs in Zimbabwe have business insurance, with the main barriers being affordability, lack of information on how to get insurance and inappropriate products.
The SMEs sector continues to positively contribute to the attainment of Vision 2030 of an upper middle-income economy status as underscored by the National Development Strategy (NDS1).
In 2022 the Government with support from United Nations Department of Economic and Social Affairs (UNDESA) prioritised the development of a results-oriented monitoring framework for timely tracking of SMEs contribution to the economy under the Revised National MSME Policy (2020-2024).
Bongani Ndlovu