SME ministry undertakes infrastructure scheme

infrastructure scheme as part of initiatives to mitigate the challenges faced by the small to medium entrepreneurs.
Addressing the committee members of the Glen View Furniture Cluster in Harare yesterday, Minister Nyoni said her ministry would arrange their relocation to larger and adequate space with suitable working conditions.
“We want you (small to medium entrepreneurs) to be trained in how to do business and we want to move you to new premises because this is not adequate. Government recently approved a policy on infrastructure provision for SMEs and will go a long way in solving workspace challenges.
“As a ministry we are engaging local authorities so that they provide land for SME infrastructure development,” she said.
Minister Nyoni added that members of the Glen View Furniture Cluster will be moved to an efficient open wholesale in town where furniture people will come to make their orders.
She also said the co-operative would be provided with funding though she advised them to pool their money and deposit it in a savings and credit account.
She also told the co-operative to identify suitable land that can be developed. “If you identify appropriate land where you want to move to, we will then go and discuss with suitable partners and have designs suitable for carpentry,” said Minister Nyoni.
Under the programme, Public and Private Partnerships have also been encouraged between SMEs and local authorities, or local authorities and private property investors.
“Local authorities are also obliged to plough back 30 percent of the proceeds levied on SMEs towards SME infrastructure development. The ministry is also building capacity in SMEs to improve their technical and business management skills through training programmes in all provinces in the country,” said Minister Nyoni.
Members of the co-operative lamented the shortage of capital and constant power outages saying it affects their operations.
A carpenter at the complex, Mr Walter Kundishora, said they were appealing to the Government to ensure that funds from banks are accessible to the SMEs by addressing the issue of collateral.
“We are also appealing for bigger workshops both in the Central Business District and in the outskirts,” he said.
The co-operative members also appealed for better temporary shelter prior to the raining season while the ministry arranges for permanent premises.
“The other issue is about the high rentals that are charged here,” he said.
The members indicated that the working space is small, inadequate and not practical considering the rates that are charged at US$185 per square metre.
As part of their programme, the ministry has engaged in market development and trade promotion whereby they organise and facilitate the participation of SMEs at local, regional and international exhibitions.
“To make a special mention we have Yiwu Permanent Exhibition in China where there is a platform to exhibit Zimbabwean products,” said Minister Nyoni.
She added that co-operatives by their very nature were an indigenous mode of enterprise in all sectors of the economy.
“The capital for co-operatives is locally sourced therefore, co-operatives own all the co-operative assets and the members are individually empowered in that each member, regardless of the number of shares he holds in the co-operative, has one vote which is equal to any other vote. There is no casting vote,” she said.