Story by Stanley James, Business Editor
Zimbabwe’s Small and Medium Enterprises (SMEs) sector is this year expecting to contribute over eight billion United States dollars, driven by the formalisation of business units.
The sector which provides a living to many people has endorsed the formalisation strategy aimed at ensuring that the government gets a fair share of business returns.
SMEs who attended the Zimbabwe Integrated Traders Association meeting held in Harare this Thursday believe their contribution to the Gross Domestic Product (GDP) can further increase, riding on expansion, new projects and compliance with formal business practices.
“The issue of formalisation is still high on the agenda but we believe that the sector can further contribute more,” said an entrepreneur.
Another said, “There are still challenges here and there but that can be addressed, remember we are here to deliberate more on what needs to be done to ensure the growth of the sector and focus on modalities to further grow our business units.”
The government has reaffirmed its commitment to facilitating a favourable operating climate for emerging entrepreneurs.
“Government is aware of the impediments affecting MSMEs which include high levels in production costs, limited access to finance, lack of marketing skills, lack of access to appropriate infrastructure, limited technology and lack of business management skills. The Ministry is therefore closely working with other government departments in accelerating formalisation of MSMEs,” said the Minister of Women Affairs, Community, Small and Medium Enterprises Development, Senator Monica Mutsvangwa.
Recent statistics in the 2022 Funscope Survey show growth of the SMEs sector with contributions of more than US$8,6 billion to the national GDP.
