SMEs upgrade on the cards

Prosper Ndlovu Senior Reporter
THE Ministry of Small to Medium Enterprises (SMEs) and Cooperative Development is working on upgrading informal businesses into vibrant formal companies in a drive meant to increase the contribution of the sector to the national economy. In an interview in Matobo District on Wednesday, the Minister of Small to Medium Enterprises and Cooperative Development, Cde Sithembiso Nyoni, said the SMEs sector continues to grow with more than four million people being employed in it.

Experts have said although the sector was generating up to $7 billion, the money rarely finds its way into the formal banking system.
“For a long time SMEs have been operating in the shadow economy and it is time to formalise them. We need to create a system that will facilitate their growth into fully fledged business entities,” said Cde Nyoni.

“Before the end of the year we will have a SMEs expo to graduate some of the informal players into formal entities. The small will be upgraded to medium and the medium to big industries.”

Cde Nyoni said the upgrading of SMEs would buttress the implementation of the ongoing indigenisation and economic empowerment programme.

She urged local authorities to support the sector by providing entrepreneurs with stands to operate from adding the bulk of councils’ funds were derived from SMEs.

Cde Nyoni also said during the next five years her ministry would prioritise developing more business entities especially in rural areas where the largest population of the country resides.

“The new thrust of my ministry is rural economic development and industrialisation.
“This has to start with agriculture where we need to harvest more water and boost food production,” said Cde Nyoni.

“We will foster industrialisation through value addition in the food processing sector. We want to have more agricultural production centres and establish canning companies that would buy the produce.

“Rural development is about helping people create wealth and generate money. This will enhance development in all areas.”
SMEs have become a critical economic player the world over creating millions of jobs and generating billions, according to the World Bank.