Online Reporter
Michelle Musandinyoze, Zimpapers Business Hub
SMALL to medium enterprises (SMEs) are playing a vital role in maintaining food value chains in Zimbabwe, thereby complementing Government efforts to enhance local productivity and efficiency.
With some large manufacturing companies struggling, SMEs have stepped in to fill the gap, importing food supplies and producing local goods. This shift has not only helped to sustain the food industry but also provided opportunities for innovation and growth.
According to the Bulawayo Chamber of Small and Medium Enterprises (SMEs) Programmes Coordinator, Mr Nketa Mangoye Dlamini, small businesses have made significant contributions to the retail sector.
“We have seen the importation of food supplies, including cereals and mealie-meal, while local businesses and manufacturers are also producing beverages such as juice and carbonated drinks,” said Mr Dlamini.
“Some of these businesses have already started the local production of mealie meal using small grains, closing the gap in the manufacturing industry to a certain degree,” Mr Dlamini said.
“Although SMEs have demonstrated their ability to adapt and innovate, responding to market demands and finding new ways to produce and distribute food products, they face significant challenges in acquiring modern and efficient machinery, making it difficult to boost production,” he said.
Mr Dlamini also emphasised the need for investment to support these SMEs to enable them to expand their operations and increase production.
The importance of SMEs in food value chains is particularly evident in the peanut butter industry, with recent disruptions in farmer supply chains leading to price increases.
Retailer Ms Lindokuhle Sibanda noted that the wholesale price of peanut butter increased from $8 for 12 bottles to $9.
“While the price increase is manageable, our fear is that it could lead to further price spikes, impacting sales and customer demand,” said Mrs Sibanda.
“We worry that we will struggle to keep up with customer demand, and this could ultimately affect our businesses.”
Another retailer, Ms Mercy Solani, expressed similar concerns, highlighting the potential impact of price spikes on other basic food commodities.
“Suppliers take advantage of retailers during price hikes, maximising profits when supply and demand are unbalanced,” said Ms Solani. “We are worried that the problem might cause prices of other basic food commodities to soar,” she said.
Despite these challenges, SMEs continue to play a crucial role in maintaining food supplies.
Mr Dlamini highlighted the potential for SMEs to support big cities with food supplies and export them, if given the right support.
“Government must continue to set up industries in rural areas to support rural industrialisation,” said Mr Dlamini.
He said this will enable SMEs to thrive and contribute to the country’s economic growth.
SMEs have been helping and strengthening food value chains, ensuring consistent supplies of essential commodities and mitigating risks associated with price volatility and supply chain disruptions.
