admin
Saviour Kasukuwere
THE small to medium enterprise sector continues to play a significant role in contributing to the economic development in Zimbabwe. It is one sector that cuts across all sectors of the economy.
Below, Saviour Kasukuwere, the Minister of Local Government, Public Works and National Housing speaks about critical pointers to enhancing SMEs growth from a local government perspective.
“Let me start by acknowledging the role that our SMEs have been playing in the development of our economy as we battle through this time of economic hardships. I would like to congratulate the Micro, Small and Medium entrepreneurs for the resilience they have shown in sustaining the lives of many Zimbabweans. I commend you for being assertive and aggressive in your approach instead of sitting and bemoaning the lack of formal employment.
The government is well aware of the critical role that SMEs play in any third world economy in general and Zimbabwe in particular. To this end the government as a way of supporting the growth of the sector has come up with specific targets as enunciated in our national economic blueprint, Zim-Asset.
The government through my ministry has long been an advocate for local economic development. The facilitation of the SMEs sector is one of such endeavours. However, let me hasten to say that the activities of the sector should not be carried in a haphazard manner but rather should be systematically co-ordinated so as to maintain the dignity and ambience of our towns and cities.
To this end local authorities should play a pivotal role in ensuring that SMEs are given the opportunity to establish themselves and grow in a sustainable manner. The growth of the sector is not only limited to the efforts of the sector players alone but local authorities should also ensure the provision of a conducive operating environment by virtue of them being land, planning and development authorities.
Pursuant to the above, it should always be noted that SMEs operate within given parameters of various local authorities who have an obligation to make sure that order is maintained within their areas of jurisdiction. This means that certain limits and controls have to be placed on all activities, SMEs included. This has however resulted in conflicts between local authorities and SMEs.
Traditionally the SMEs sector has always played second fiddle to the formal sector in economic development. Formal businesses were courted and facilitated by councils as they were easy to deal with as they contributed to efficient municipal service delivery through payment of local rates and taxes to council coffers. Over the past we have seen that the so-called formal businesses did not weather the storms well.
Some packed up and closed when the hard times hit the economy whilst others could not adapt to the changing environment and folded.
Many cities, towns and even growth points have large empty factories and large commercial properties, which have been converted to other uses including informal sector enterprises.
With this scenario in mind my Ministry issued a circular to all local authorities in May 2015 guiding them on their interface with the SMEs sector. For the benefit of this gathering the circular had the following salient pointers:
– Councils should consider facilitating part time players in the sector by allowing weekend and evening street markets and car-boot sales. The idea behind this is to allow entrepreneurs to start small and grow. This should be done bearing in mind that the acquisition of space is a critical cost in starting an enterprise and not all our potential entrepreneurs have the start up capital for this.
– Local authorities are expected, where ever possible, to construct factory shells and lease them for a period long enough to allow for the enterprises to generate sufficient funds to set up factories of their own. All factory shells should allow sufficient space for the retail of produce and should have basic attendant services such as water, access roads, parking space, ablutions and electricity.
– Councils should create space for SMEs operations such as mobile pushcarts services whereby traders and service providers literally follow the market. This sort of operation has previously been restricted to vending but I see no reason why maintenance and repair services could also not be operated from pushcarts.
– Local authorities should be creative and innovative in their bid to create space for the sector. In this regard the concept of transforming street islands into aesthetics “island markets” with fold away vending tables and coloured umbrellas is fully supported. This pointer has a downstream effect as it creates new industry for other entrepreneurs.
– From a policy and legislative point of view, councils should adjust their thinking, their planning and their by-laws to encourage and promote the informal sector just as the formal sector is accommodated so as to enhance local economic development.
– All new layouts should include space for the operations of MSMEs and any private land development approval should incorporate a clause to provide facilities for the same as part of the design.
– Local authorities should encourage the sector operating within its area of jurisdiction to organise themselves into officially recognised associations, with the view of enabling participation by the sector in all areas of human endeavour. Whilst I acknowledge that this is one sector that is highly democratised association representatives should not turn themselves into space barons who have the temerity to confront authorities when they are diligently discharging duties.
– Councils should encourage existing SMEs to join the waiting list for industrial and commercial stands and should establish favourable terms for the same in order to facilitate progression from small to medium to large enterprises.
– Local authorities should set aside a reasonable percentage of revenue raised from fees and licences from the SMEs for the construction of appropriate infrastructure to facilitate the development of the sector. This funding should be ring-fenced in the council budget and the informal sector should be involved in the budget consultation process.
– Councils should opt for “dialogue before power” approach when enforcing by-laws relating to vending and the SME sector. The seizing of vending wares and strong arm tactics on the part of municipal police has not resolved the problem of uncontrolled vending. As we are gathered here new approaches are required. The need to have a communicative approach does not however absolve the local authorities to enforce their by-laws.”
Online Reporter