ZIMBABWE’s micro, small and medium enterprises (MSMEs) have been commended for their resilience and contribution to the national economy in the face of mounting operational challenges.
This came out at the inaugural state of the MSMEs survey report and awards ceremony held last week.
The project was spearheaded by The Financial Gazette and the Small and Medium Enterprises Development Corporation (SMEDCO), with research conducted by Consumer Feedback Consultancy.
The event underscored the sector’s pivotal role in shaping Zimbabwe’s economic future and highlighted ongoing efforts to bolster its growth.
In her speech at the event, SMEs minister Monica Mutsvangwa praised SMEDCO and its partners for the landmark study, which is set to inform national discourse and lay the groundwork for annual tracking of the sector.
“The theme of this programme, ‘Driving Progress, Creating Prosperity,’ is befitting for acknowledging, celebrating, and propelling the development of SMEs, which are unequivocally the engine room of economic development in Zimbabwe,” the minister said in a speech read on her behalf by the ministry’s Permanent Secretary, Mavis Sibanda.
Chairperson of SMEDCO’s board, Charity Kadungure, reinforced this view by describing SMEs as the “backbone of our economy,” noting their contribution of billions of dollars annually.
The initiative is seen as a strategic move to inform policymaking, with the potential to establish an annual tracking system for the sector’s progress.
Despite their importance, the sector faces numerous challenges, including regulatory hurdles, limited access to financing, and restricted market opportunities.
Despite the Reserve Bank of Zimbabwe establishing a collateral registry for movable assets to help SMEs without immovable property access credit by allowing these assets to be used as security, most banks are still reluctant to lend.
To address these issues, SMEDCO has allocated over US$5 million in the past year to support small businesses, highlighting the ongoing commitment to sector development.
The government’s comprehensive strategy for SMEs, guided by the national MSMEs policy, includes several key initiatives.
These comprise efforts to create a more favourable regulatory environment, with recent Cabinet approval of principles to amend the MSME Act.
Additionally, measures to improve access to finance include empowerment funds and the introduction of a movable collateral registry through collaboration with the Reserve Bank of Zimbabwe’s Financial Inclusion Strategy.
Minister Mutsvangwa also highlighted programmes for promoting market access, with 52 SMEs recently showcasing their products at the Osaka World Expo in Japan, and providing essential business skills training in collaboration with institutions like ZIMRA and ZimTrade.
A significant call was made for SMEs to embrace digital transformation.
“I implore MSMEs to adopt digital technologies as it has become an imperative for any business to stay competitive,” the minister urged, specifically pointing to e-commerce, artificial intelligence, and social media marketing.
The ceremony culminated in an awards segment honouring top-performing enterprises.
Metastable Enterprises won the Environmental Compliance Award, while Cuteworm Investments took the Social Impact and Responsibility Award.
Samuneti Leather was recognised for Export and Cross-Border Trade, and Empower Bank dominated the Women, Youth and People with Disabilities Support category.
Econet collected two accolades, including for Impactful Support to MSMEs in Digital Advancement, and CBZ Bank won the Financial Access to MSMEs Award.
“It is important to note that we are all winners as we have taken a bold step to start and run enterprises in this highly competitive environment,” the minister said.
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