Vusumuzi Dube
Judith Phiri, Business Reporter
BULAWAYO micro, small and medium enterprises (MSMEs) have been urged to formalise their operations, a development key to them accessing key business development support services from stakeholders including financial institutions.
According to the United Nations (UN) Globally, MSMEs account for 90 percent of businesses, employ 60 to 70 percent of the workforce, and contribute approximately 50 percent to the Gross Domestic Product (GDP).
In Zimbabwe, according to the 2021 MSME Survey and the 2022 Finscope Survey, MSMEs contribute over 60 percent of GDP and employ 4,8 million people on a full-time basis.
Officially launching the Start and Improve Your Business (SIYB) training programme in Bulawayo on Thursday, Bulawayo Minister of State for Provincial Affairs and Devolution, Judith Ncube said formalisation of MSMEs was critical.
“The Government is in the consultation process to find a strategy of formalisation for the informal sector through the National Development Strategy 1 (NDS1) which involves support of informal workers, working towards an increase in incomes and developing decent working space for all those working in the informal economy,” she said.
“Consultative meetings are underway in different provinces around the country in order to get valid contribution from the informal sector in Zimbabwe in a bid to facilitate the transition of informal to formal.”
She said the Government has also come up with several initiatives towards promoting the informal sector, some of which included the Reviewed MSME Policy (2020-2024) premised on 12 Strategic pillars to support the development and growth of MSMEs.
The Minister said the Broad-Based Economic Empowerment Framework was also in the process of being validated which will assist in the economic enhancement of women in key sectors such as mining, tourism and agriculture.
She said empowering MSMEs with skills will drive economic development and create employment opportunities for the youth and women.
“The National Development Strategy 1 (NDS1) clearly stipulates the importance of the informal economy in our country as it is making a significant contribution of 61 percent towards the country’s Gross Domestic Product (GDP).
“I am glad that Bulawayo Metropolitan Province has welcomed the efforts that International Labour Organisation (ILO) continues to implement with excellence in order to empower the youths and women. Indeed, their initiatives do not only complement our Government’s efforts, but they standardise international models, which dovetails with our mantra as the Second Republic,” she said.
She said the trainings were an eye opener to the entrepreneurs and also enlightening enough to steer them into broadening their scope in the business world.
The minister said she envisaged Bulawayo becoming the model of the country and attracting more foreign direct investments (FDIs), at the same time growing its GDP.
Calling on the promotion of public private partnerships (PPPs), Minister Ncube said: “In order for our country to develop, the private and public sectors need to create synergies and linkages. It is essential for the informal sector to participate fully in economic activities in order to contribute effectively in building stronger economies, and improving the quality of life for the general citizens.”
ILO representative Mr Fortune Sithole said they were implementing numerous capacity-building initiatives while also providing equipment and start-up assistance to various groups to enhance production.
He said they were targeting different value chains, with the key focus being on improving production and linking them with various markets.
“One of the initiatives under the Sustainable Enterprise Development programme is the training of women and youths. The SIYB training aims to provide them with essential business management skills, enabling them to formalise and run their businesses effectively. Our long-term goal is to create employment for young people, promote safety and health in the workplace, and improve workers’ rights. MSMEs continue to play a critical role in economic growth, with women and youths owning many of these businesses.”
Bulawayo Chamber of SMEs co-ordinator Mr Nketa Mangoye Dlamini said the provision of business management and technical skills for MSMEs will go a long way in ensuring that they are adequately equipped to produce quality products and services.
He said a dynamic entrepreneurial environment was crucial for fostering innovation and technology.
“I encourage local MSMEs to formalise their operations in order to leverage technology for producing competitive goods for the market. Entrepreneurs should take advantage of the diverse MSME support programmes provided by the Government and create knowledge-based enterprises, as information and knowledge are increasingly becoming key assets for wealth creation.”
The training is in line with the mandate of the Ministry of Women Affairs Community Small and Medium Enterprises Development in partnership with ILO and various other stakeholders to capacitate MSMEs.
Online Reporter