SMEs driver to economic prosperity — Minister

Source: The Herald – Breaking news.

 Women Affairs, Community, Small and Medium Enterprises Development Minister Monica Mutsvangwa is welcomed by Zimbabwe Staff College Commandant Brigadier General Joe Muzvidziwa, at the institution where she delivered a lecture yesterday

Joseph Madzimure, Senior Reporter

Small and medium enterprises remain a crucial driver of employment creation, economic growth, and poverty reduction in Zimbabwe, Women Affairs, Community, Small and Medium Enterprises Development Minister Monica Mutsvangwa said yesterday.

Giving a lecture at the joint command and staff course number 38 at Zimbabwe Staff College, Minister Mutsvangwa said Government remained committed to strengthening the sector and ensuring that no one and no place was left behind in line with Vision 2030.

“As we march towards Vision 2030 of an upper-middle-income economy, the role of SMEs cannot be overemphasised. You as highly skilled professionals are exceptionally equipped to capitalise on the abundant SME opportunities in Zimbabwe and the continent at large,” she said.

Entrepreneurship offered a rewarding path to economic empowerment and wealth creation.

“I strongly encourage you to explore SME initiatives as a means of building sustainable livelihoods,” said Minister Mutsvangwa.

The Government of Zimbabwe was committed to providing the necessary support for successful entrepreneurial journeys. In 2024 alone, Government successfully facilitated market access for 14 173 SMEs, with notable participation in events like the Zimbabwe International Trade Fair and international trade fairs in Zambia, Tanzania, Malawi, Namibia, India, China and Turkey.

Minister Mutsvangwa indicated that this year, 41 SMEs have so far been mobilised to market their products at the Osaka World Expo in Japan. Recognising the critical need for decent and appropriate workspaces, she said the Government, in close partnership with local authorities, development partners and private investors, was driving the development of SME Infrastructure. The Government was actively promoting innovative investment models, Including the arrangements known as build-operate-transfer (BOT) and build-own-operate-transfer (BOOT).

“To demonstrate our commitment, significant Government funding has been allocated for SME workspace construction, with projects currently underway in Gweru, Chirundu, Bulawayo, Gweru and Chikomba.”

Women Affairs, Community, Small and Medium Enterprises Development Minister Monica Mutsvangwa addresses student at the Zimbabwe Staff College in Harare yesterday.

Recognising the immense contribution of SMEs to economic growth and employment, she said the Government had undertaken deliberate efforts to enhance the sector’s sustainability and expansion.

Several strategic interventions had been put in place to support SME growth and employment creation.

The Second Republic had improved the business environment such that private sector financial institutions had come on board to embrace SMEs by giving them loans.

“New financial products and services specifically addressing the needs of women entrepreneurs, such as flexible loan terms, long-term capital loans, and comprehensive business development support, have been put in place.

“The proactive implementation of the Financial Inclusion Strategy I and II by the Reserve Bank of Zimbabwe has improved SME access to and use of formal financial services.”.

In Zimbabwe the SME sector had become the engine for economic development with over 3,4 million registered SMEs, employing over 4,8 million people and the sector contributing about 60 percent to GDP according to the 2021 MSMEs Survey.

Furthermore, 76 percent of Zimbabwe’s workforce was engaged in the SME sector, and notably, women constitute 52,1 percent of full-time employees, highlighting the sector’s importance in women empowerment and national economic transformation.