Harare (New Ziana) – The government has directed that more incentives be provided to help speed up formalization of micro, small and medium enterprises (MSMEs) operations in view of the significant contributions they are making towards the growth of the country’s economy.
Briefing the media at the end of Tuesday’s 14th Cabinet meeting, Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa said the government made the recommendations after receiving an update on the contribution of MSMES to Vision 2030 from the Minister of Women Affairs, Community, Small and Medium Development, (MWACSMED) Sithembiso Nyoni.
She said through enhanced support and the policies of the Second Republic, MSMEs are contributing significantly to moving the economy up the value chain, food and nutrition security, economic growth and stability through production of goods and services, employment creation and the sustenance of livelihoods.
Cabinet had therefore directed that business regulatory services, including business registration, be streamlined and decentralised to accelerate the formalization process while funding capacity is expanded of the Small and Medium Enterprises Development Corporation (SMEDCO), and the Zimbabwe Women Micro Finance Bank.
“Incentives will be provided to enable finance institutions to extend long-term finance instruments to MSMEs, particularly in the machinery and equipment production business,” said Mutsvangwa. “Resources will also be channelled towards enabling the Standards Association of Zimbabwe (SAZ) to support product and systems certification for products from MSMEs and thereby enhance their regional and international competitiveness.”
The process of mainstreaming MSMEs development in the Devolution Agenda will be accelerated with special attention on workspace provision for the various categories of enterprises across all provinces and districts.The Ministry is collaborating with universities, innovation hubs and industrial parks to promote technology transfer and the formalization of informal enterprises with many enterprises now registering with the National Social Security Authority NSSA) for the benefit of their membership and are opening bank accounts as well as paying taxes.
Since 2021, approximately 3.4 million MSMEs comprising 3 242 570 micro enterprises, 114 591 small enterprises and 1 545 medium enterprises and owned by 4.2 million entrepreneurs have been in operation.
Most MSMEs are into wholesale and retail trade; motorcycle, motor vehicle repairing; agriculture, forestry and fishing; and manufacturing contributing US8.6 million to the country’s GDP according to the Finscope Survey of 2022.
“In employment terms, over 4.8 million persons comprising women (52.1 percent) and males (47.9 percent) were engaged on a full-time basis in the MSMEs sector. MSMEs are engaged in light engineering, furniture-making, agro-processing, leather and leather products, clothing and textiles, oils, plastics and chemicals, and food and beverages,” she said, adding that leading MSMEs hubs include Siyaso, Magaba, Glen View and Gazaland in Harare; Kelvin and Makokoba in Bulawayo and Sakubva in Mutare.
Among light engineering products produced by MSMEs are grinding mills, dehullers, threshers, boremills, oil pressers, boilers, welding machines, transformers, and building materials. The clothing and textiles sub-sector is producing school uniforms, baby wear, protective clothing and corporate wear while MSMEs have become the major suppliers of cordial drinks, peanut butter, maize and traditional grains meal, honey, dried fruits and tomato pastes, among many other products over the past five years.
“MSMEs are also producing leather products inclusive of school shoes, fashion shoes, belts, bags and wallets,” Mutsvangwa said.
“Chemical industries run by MSMEs are producing large quantities of high-quality detergents, petroleum jellies, methylated spirit, degreasers, paint, sanitisers and plastic containers for packaging.”
MSMEs are also making a significant contribution towards the National Development Strategy 1 (NDS1) target of growing exports to US$14 billion per annum by 2030 while acting as pathfinders in regional and international markets through participation in exhibitions and fairs such as the recent Dubai Expo 2020 and the upcoming Tokyo Expo 2025. The majority of exporting MSMEs are in art and craft, clothing and textiles, horticulture, and leather and leather products.
Mutsvangwa said Cabinet had noted that the huge demand for workspace by MSMEs has contributed immensely to job-creating infrastructural development projects in major cities, towns and at growth points across all provinces and districts.
Therefore, cooperatives are being refocused to provide workspace for MSMEs, including in all new settlements while the government acknowledged the challenges constraining MSMEs operations that include limited access to finance, antiquated machinery, lack of formalization, and low business management skills.
Source: New Ziana
In other news- 24 BCC workers injured while on duty
Bulawayo (New Ziana)-At least 24 Bulawayo City Council workers were injured while on duty as of end of April this year, with February recording the highest injuries due to skirmishes with illegal vendors, a senior official has said.
Town clerk Christopher Dube said this during belated World Day for Safety and Health at Work commemorations held at the Famona Fire Station in the city on Wednesday. Learn more
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