Chronicle Editor
Judith Phiri, Business Reporter
ENHANCING financial education for women-led Micro, Small, and Medium enterprises (MSMEs) in Zimbabwe has been viewed as one of the key factors to ensure women business owners are able to tap into the opportunities presented by the African Continental Free Trade Area (AfCFTA).
The AfCFTA is an ambitious undertaking that brings together 1,3 billion people in 55 African countries to create the world’s largest free trade area as measured by the number of participating member States.
It is a transformative force, representing a vast market with a combined Gross Domestic Product (GDP) of over US$3 trillion and its objective is the creation of an integrated market for the trade in goods and services and the free movement of people and capital.
In an interview, businesswoman, Ms Alethea Taruvinga said financial literacy for women business owners was important for them to fully benefit from the AfCFTA.
“In theory, African women can start a business, but in practice, they are not as well-equipped to expand and secure their enterprises in the long run. This has a lot to do with the fact that women consistently score lower than men on financial literacy measures,” she said.
“This is why we are saying that if women business owners are empowered and trained on financial literacy, they can also be able to tap into the opportunities presented by the AfCFTA.”
She said they will have the ability to understand and effectively use financial tools, which is key to making informed financial decisions.
Ms Taruvinga said there were various opportunities in the AfCFTA that could grow women-led and owned businesses, while also positively contributing to economic growth of the country.
Ms Priscilar Mutemeri who runs a bakery, Bakers World in Masvingo said change of mindset was important for women in business to fully benefit from the AfCFTA.
“The creation of the AfCFTA vast regional market is a major opportunity for women-led and owned businesses in Zimbabwe to diversify exports, grow faster and attract foreign direct investment (FDI). These businesses if they are into exports of processed foods, agriculture, and manufacturing they stand to gain the most,” she said.
“That is why were are calling on women in business to have a change of mindset so that they can fully benefit from the AfCFTA, supporting the development of intra-regional value chains.”
She said debt management was also another important aspect to consider to ensure women-led and owned businesses they have debt management strategies that does not affect their growth.
Economist and consultant, Mr Dumisani Sibanda said small businesses could come together and form associations so that they can be able to tap into opportunities presented by the AfCFTA.
“Small businesses in the same sector can come together to form associations that enhance their opportunity to share knowledge, market information and source capital funds. This allows them to also better handle logistics and tap into each other by pool resources together,” he said.
He said this can also allow them to penetrate markets which individually they could not be able to do so on their own.
Mr Sibanda said where there are more people producing the same product, them coming together collectively will ensure they reduce costs in terms of warehouse for their products and transportation.
“Together they can establish a standard required by the market so that they can be able to export together, while also benefiting more from pricing and being competitive on the market,” he added.
Bongani Ndlovu