Story by Memory Chamisa
SMALL and Medium Enterprises (SMEs) are emerging as a key driver of Zimbabwe’s economic growth, with the Small and Medium Enterprises Development Corporation (SMEDCO) recording a 50 percent increase in loan uptake as demand for business financing continues to rise.
The development reflects growing momentum within the SME sector, which is increasingly contributing to industrial production, employment creation and economic participation across the country.
Businesses operating in detergents and petroleum jelly production, piggery and poultry farming, beverages manufacturing and food processing are among the enterprises benefiting from SMEDCO financing and business support initiatives.
SMEDCO Chief Executive Officer, Mr Obert Ngwenya, said the institution remains focused on strengthening the capacity of micro, small and medium enterprises through targeted financial support and enterprise development programmes.
“3 139 clubs were established and strengthened, with over 5 000 members capacitated and linked to funding. The National Handicraft Development and Marketing Centre is one of the programmes being funded. The Funding of 30 Micro, Small and Medium Enterprises Phase 1 has utilised US$ 674 000 out of the budget of US$1 million, with 56 members already benefitting from the scheme.
“SMEDCO was established to champion economic growth by promoting and developing Micro, Small and Medium Enterprises through the delivery of customer-focused financial and business extension services. It is in line with this mandate that we avail loans to SMEs. MSMEs generate more than US$14 billion annually into the mainstream economy, and their capacitation is imperative,” he said.
The increased uptake in loans comes as Government intensifies efforts to formalise and empower SMEs, which are regarded as a critical pillar of Zimbabwe’s economic transformation agenda.
