adminRumbidzayi Zinyuke Manicaland Bureau
Five small and medium enterprises from Mutare district have so far benefited from loans under the Zimbabwe Poverty Alleviation project (2017-2020).
The programme, which falls under the $7,6 million Organisation of the Petroleum Exporting Countries (Opec) Fund for International Development, aims to support livestock development, optimisation of local resource endowments, financing Savings and Credit Cooperatives (SACCOS) in income generating projects as well as setting up of entrepreneurial training institutes.
According to the second quarter Manicaland Development Committee report, the project funding for Manicaland is $28 000.
“Five SMEs applicants have been approved for loan disbursement, which has resulted in improved access to finance for livestock production businesses, SACCOS and other value addition projects in rural communities,” reads the report.
“The project has also resulted in improved household incomes through livestock production and there has been growth of value addition income generating activities and improved utilization of local resource endowments in communities for poverty reduction.”
The report also shows that there has been improved business management skills through entrepreneurship training and recommended the continued strengthening of partnerships with stakeholders for effective project implementation.
It also notes that SMEs in Manicaland continue to face challenges in accessing formal markets through the linkages programme due to the high levels of informality.
The sector has been faced with challenges despite interventions by Government and partners to assist.
According to the report, SMEs in all districts benefited from a $36 000 fund from Plan international for capacity building with the aim of growing the sector.
Plan, along with Inspire and Lead also provided funds for SMEs in Mutare district to improve market linkages with the formal sector.
“The programme has resulted in import substitution and improved access to formal market for the SMEs. However, there is low disposal income in the market resulting in depressed demand for local products. Informality among SMEs also continues limit access to formal markets,” reads the report.
Support for the SME sector is espoused in the Transitional Stabilisation Programme.
The TSP focuses on supporting sustainable SME growth and development through business linkages, market access, cluster development, business incubation and support services.
According to the TSP, there is need to focus on forward and backward linkages for SMEs with large businesses in various value chains.
Online Reporter
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