Online Reporter
Oliver Kazunga
Senior Reporter
THE Micro, Small and Medium Enterprises (MSMEs) sector has emerged as the country’s single largest driver of economic growth, now accounting for about 60 percent of gross domestic product (GDP) while employing more than five million people, cementing its position as the backbone of production, employment and income generation across the economy.
The latest employment figures represent a significant increase from the 3,3 million people reported as employed by the sector in the 2022 FinScope MSME Survey, reflecting rapid expansion across agriculture, mining, manufacturing, retail, transport and a wide range of service industries.
MSMEs also dominate the informal economy, providing livelihoods for millions while increasingly contributing to industrialisation, innovation and rural development.
Women Affairs, Community, Small and Medium Enterprises Development Minister Monica Mutsvangwa said Government was intensifying efforts to strengthen the sector through expanded access to affordable finance, modern production equipment, markets and business infrastructure.
“The MSMEs and cooperatives are the powerhouse of this economy. When the Minister of Finance speaks about GDP growth, 60 percent of that growth comes from MSMEs and cooperatives. They are employing more than five million people, while the country also has more than 3 000 cooperatives,” she said.
Minister Mutsvangwa said limited access to affordable finance remained one of the biggest constraints facing entrepreneurs.
This has prompted Government to expand concessionary lending through the Zimbabwe Women’s Microfinance Bank, the Small and Medium Enterprises Development Corporation (SMEDCO), the Women Development Fund and the Community Development Fund.
Government, she added, had secured a US$6 million offshore financing facility for SMEDCO from the Arab Bank for Economic Development in Africa (BADEA), with almost half of the facility already disbursed to support MSMEs.
“I attended a conference in Seville (Spain) with the Minister of Finance, Economic Development and Investment Promotion. After presenting Zimbabwe’s MSME success story, BADEA approved a US$6 million facility for SMEDCO, and almost US$3 million has already been drawn down,” she said.
Women, she added, own about 56 percent of Zimbabwe’s MSMEs, making them the largest participants in the sector.
To enhance their competitiveness, Government was strengthening entrepreneurial, digital and e-commerce skills to enable businesses to take advantage of opportunities under the African Continental Free Trade Area (AfCFTA).
She said the growing influence of MSMEs was evident in several strategic sectors of the economy.
Smallholder farmers now account for much of Zimbabwe’s tobacco production, which has surpassed 300 million kilogrammes, while small-scale miners contribute approximately 60 percent of the country’s annual gold output of about 51 tonnes.
To unlock greater productivity, Government was working with stakeholders to improve irrigation infrastructure, expand industrial workspaces, modernise production equipment and strengthen insurance coverage for small-scale miners.
Min Mutsvangwa said sustained investment in MSMEs and cooperatives would accelerate industrialisation, economic transformation and employment creation under the National Development Strategy 2.
“The MSMEs will turn around this economy faster than anybody can think,” she said.
Economic commentator Ms Wendy Mpofu said the continued expansion of MSMEs reflected the resilience and entrepreneurial capacity of Zimbabweans, with the sector now occupying a central position in the country’s productive economy.
“The growth of MSMEs demonstrates the resilience and entrepreneurial capacity of Zimbabweans. However, the next stage of development should focus on improving productivity, technology adoption and business formalisation. A large MSME sector is positive, but sustainable economic transformation depends on enterprises evolving into more competitive, productive and value-addition-focused businesses,” she said.
