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The Small to Medium Enterprises Association of Zimbabwe has started implementing the franchise model of its business linkages programme which is expected to increase business between SMEs and large corporations. Under the programme, the association is expected to set up distributorships meant for locally manufactured products to be run by SMEs.
There would also be sub-distributors, shops, kiosks and even table-top sales under the distributors.
The model is expected to ensure accountability, continuous stocking and the participation of various players in the industry. The linkages programme, the brainchild of the Zimbabwe National Chamber of Commerce and SMEAZ, came into effect in January after the two organisations signed a memorandum of agreement, but its implementation was stalled by lack of funds.
SMEAZ president Mr Farai Mutambanengwe said the association had, however, concluded a feasibility study for a template model.
“We have since completed the feasibility study, and should soon have feedback from the sponsors for the funds to be made available. We expect that by October the first shop should be up and running,” he said.
Mr Mutambanengwe said SMEAZ had so far enlisted the services of five large corporates who were willing to work with them on the programme.
He said Twenty Third Century Systems had become the first corporation to fully sign on for the programme while National Foods, starafrica, Lyons Maid and Pro Group had also agreed to participate as core suppliers.
“We are also working towards bringing payment platform providers on board and so far, we are in the process of signing an agreement with CABS for the use of their Texta Cash platform,” he said.
He said the association would work on engaging more large corporations with a view to having as wide a range of core products as possible.
The programme is expected to cover a wide range of areas such as procurement, distribution and sales, contract farming, franchising and leasing, sale of financial services, ICTs, outsourcing non-core functions and productive inputs and tools.
Going forward, the SMEs would have a vested interest in the large corporations’ success, and become brand ambassadors while at a macro-economic scale, the programme addresses the issues of unemployment, excessive imports, retention of money within the country and promoting local brands.
Online Reporter