Vusumuzi Dube
Judith Phiri, Business Reporter
WOMEN Affairs, Community, Small and Medium Enterprises Development Minister Monica Mutsvangwa has said small to medium enterprises (SMEs) have become a driving force behind industrial development, significantly contributing towards employment generation, wealth creation and poverty reduction.
According to the World Economic Forum, SMEs contribute more than 80 percent of Africa’s employment and 50 percent of the GDP.
Speaking at the Zimbabwe National Chamber of Commerce (ZNCC) 2024 Annual Congress in Victoria Falls on Wednesday, the Minister said the SMEs sector sector accounts for more than 76 percent of all employment providing livelihoods.
“Zimbabwe is no exception as the sector has become the engine for economic development. The MSME 2021 Survey revealed that the sector in the country is made up of 3.4 million businesses and provided full time employment to over 4.8 million people. The 2022 SME Survey highlighted that MSMEs contributed USD 8,2 billion to national GDP. The sector accounts for more than 76 percent of all employment providing livelihoods for many people and alleviating poverty in communities,” she said.
She said the country had numerous prospects for SMEs phenomenal growth.
Giving an example, Minister Mutsvangwa said as Manhize Disco Iron and Steel plant blast furnaces recently started delivering pig iron, this was an opportunity for SMEs to tap into the downstream opportunities.
“A fortnight ago, the Manhize Disco Iron and Steel plant blast furnaces started delivering pig iron. This will soon to lead to bars and other steel products. The belching steam is being capture to drive the nearby 75 MW thermal power generators.
“The slag from ore- purifying limestone is being earmarked for a huge cement factory. Carbon steel and cement, the holy grail products of affordable and sustainable nation building are now eminently the staple of Zimbabwe’s industry,” she said.
“So, what does this mean for our SME? We are faced with the tantalizing prospects of massive steel foundries and downstream steel fabrication of all types of widgets destined for the national, African Free Continental Trade Area (AfCFTA) and the global markets.”
She said as Africa moves towards integration, the AfCFTA presents a significant opportunity for SMEs to access a huge market of 1.3 billion people with a combined GDP of approximately US 3.4 trillion.
The Minister said SMEs can tap into new markets and customers across Africa, benefit from reduced tariffs and trade barriers thereby increasing their competitiveness.
As the country accelerate support for SMEs growth, she said climate change presents significant business opportunities which SME can tap into.
“These include use of renewable energy such as solar and wind, energy efficiency technologies, climate-smart products, climate adaptation solutions and global readiness to support sustainable finance for climate smart investments,” she added.
“By addressing climate change, SMEs will not only benefit the environment but also create new markets and business opportunities.”
Minister Mutsvangwa said a block buster Irrigation and Climate Change Conference was soon to be held, headlined by the President Mnangagwa.
She said all this was in order to harness the fertile soils and equable climate that supply the Golden Leaf and other valuable crops which are much coveted the world over.
The conference is running under the theme: “Unlocking New Frontiers for Sustainable Industrialisation and Climate Smart Business Growth”.
Bongani Ndlovu