adminRoberta Katunga Senior Business Reporter
FUNDING opportunities for Small and Medium Enterprises (SMEs) will take centre stage at the third annual Zimbabwe SME banking and micro-finance summit as Government intensifies financial inclusion for the SME sector. The summit set for 11 March in Harare under the theme “Value chain financing” is being hosted by Pan-African private sector consulting DEAT Capital together with the Ministry of Small to Medium Enterprises and Co-operative Development. DEAT Capital managing director Mr Nicky Moyo said this year’s summit will focus on the financing mechanisms that are available in the market as well as exploring funding opportunities, particularly looking at value chain financing for the SMEs sector.
“This initiative has now become an annual event with industry significance as well as of fundamental importance in line with the Zimbabwe Agenda for Sustainable Socio-Economic Transformation policy,” said Mr Moyo.
He said some of the issues that will be focused on include looking at the new Government initiative of setting up a women’s bank as well as the Reserve Bank of Zimbabwe policies for SMEs in the banking sector.
Mr Moyo said the idea of micro-insurance as another area of financial inclusion will be discussed.
“More than 50 percent of the population is uninsured yet businesses can benefit a lot by insuring their companies. There is a general understatement of insurance services in the country hence the need of cultivating that culture,” said Mr Moyo.
He said hosting of the summit together with the parent ministry underlines Government commitment to the sector that is significant in creating more jobs per capita as well as being a catalyst of innovation and entrepreneurship.
Speaking on the importance of the SMEs sector, Mr Moyo said the industry has a higher impact on economic growth and is good at utilising capital as well as being a tool for poverty reduction.
“Converging as an industry to discuss issues such as the role of access to finance in creating entrepreneurial firms and fostering their success as well as innovative financing for women in business is important due to the significance of SMEs in economic growth,” he said.
A Finscope 2012 survey showed that the SMEs sector in Zimbabwe has an estimated turnover standing of $7,4 billion circulating within the sector.
The sector plays an important role in addressing the country’s unemployment, by virtue of 5 700 000 working in the sector, inclusive of owners, notwithstanding that for many their incomes are very limited, well below the Poverty Datum Line (PDL).
The survey concluded that, “Although effects on wealth creation are limited given the low levels of income among the majority of SME owners, survivalist businesses play a vital role as a buffer against slipping into deeper poverty, reducing individual and household vulnerability.”
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