SMEDCO supports mech

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THE Small and Medium Enterprises Development Corporation (SMED­CO) says it is actively helping mi­cro, small and medium enterpris­es (MSMEs) adopt mechanisation through financing for machinery and equipment, among other initia­tives.

Many women entrepreneurs struggle to access formal loans to purchase costly industrial machin­ery because they lack collateral and face high interest rates.

Speaking at the launch of Zim­babwe Women in Manufacturing (ZWIM), SMEDCO chief executive officer Obert Ngwenya said limited access to machinery remains one of the biggest barriers to entering the manufacturing sector.

“We are actively supporting MSMEs to adopt mechanisation through financing for the acquisi­tion of machinery and equipment, facilitating access to shared produc­tion facilities, supporting industri­al workspaces designed for mech­anised production and training of our entrepreneurs,” Ngwenya said.

He said mechanisation enables women entrepreneurs to increase production capacity, lower costs and reduce physical labour and time constraints.

“Without manufacturing, pro­ductivity remains low, cost remains high and competitiveness is limited. But with mechanisation, women can increase production capacity, sig­nificantly lower production costs and reduce physical labour and time constraints, meeting larger orders and supplying contracts, and also accessing new markets, including export markets,” he said.

MSMEs form the backbone of Zimbabwe’s economy, accounting for more than 90 percent of all busi­nesses and employing over 80 per­cent of the workforce.

The sector contributes more than 60 percent of the country’s gross domestic product, with recent esti­mates placing its contribution at ap­proximately US$46 billion.

Meanwhile, the Industry minis­try’s regional director Clifford Mun­hema acknowledged the unique sys­temic challenges women face when trying to expand businesses from small enterprises into large manu­facturing operations.

He said these challenges include limited access to industrial financ­ing and equity capital, difficulties in acquiring modern industrial tech­nology and automated machinery, restricted access to formal industrial infrastructure and land, and barriers to entering regional and global val­ue chains.

“ZWIM is the timely solution we currently need in our economy. It will serve as an institutional bridge, transitioning women-led enterprises out of informal micro-scale opera­tions into formalised, competitive and sustainable manufacturing enti­ties,” Munhema said.

He added that the ministry re­mains committed to creating a poli­cy environment that enables women to become not only consumers of manufactured goods but also owners of factories producing quality, com­petitive products.

Data consistently shows that women-led businesses demonstrate strong resilience, efficient capital utilisation and significant reinvest­ment in their communities.

Women-led MSMEs play a vital role in Zimbabwe’s economy, ac­counting for more than 56 percent of SMEs and driving substantial grass­roots economic activity.

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