Siphakeme .Mnindwa
Judith Phiri, Business Reporter
THE Bulawayo Chamber of Small to Medium Enterprises (SMEs) has commended various initiatives that were put in place this year to empower Micro, Small, and Medium enterprises (MSMEs) in the city, and boost their production.
A number of initiatives were rolled out by the Government, development partners and various organisations as a catalyst for inclusive development of MSMEs nationwide.
According to the United Nations (UN) Globally, MSMEs account for 90 percent of businesses, employ 60 to 70 percent of the workforce, and contribute approximately 50 percent to the Gross Domestic Product (GDP).
In Zimbabwe, according to the 2021 MSME Survey and the 2022 Finscope Survey, MSMEs now contributes more than USD8,6 billion to the Gross Domestic Product (GDP) being 60 percent and employ 4,8 million people on a full-time basis.
In an interview, the chamber’s vice-chairperson, Ms Sithabile Bhebhe said MSMEs were driving economic prosperity and immensely contributing not only to the national GDP but provincial GDP as well.
“MSMEs have become a big economic force in the country and across the globe. In Bulawayo, MSMEs play a pivotal role and positively contribute to the city’s GDP. As a chamber we commend various initiatives that were rolled out this year to empower them and boost their production,” she said.
Speaking on the recently established Maker Space Innovation in Bulawayo, she said it was a welcome development meant to innovate and improve the quality of women-led enterprises in the textile industry products to match world-class standards.
The Government, through collaborative efforts with the International Labour Organisation (ILO) and United Nations (UN) Entity for Gender Equality and the Empowerment of Women Zimbabwe, established the Maker Space Innovation to catalyse the development and performance of women-owned enterprises within a specific industry or value chain.
UN Women Zimbabwe provided 12 state-of-the-art high-end machinery while ILO supported refurbishing the Bulawayo SME Centre.
Ms Bhebhe said the Maker Space Innovation was not just a hub but a tailored support system for female textile business owners in Bulawayo, designed to empower them to transform their economic fortunes and close the gender inequality gap in Zimbabwe.
Rolling out a revolving fund to empower SMEs in the Matabeleland region, the Zimbabwe West Union Conference (ZWUC) Adventist-Laymen’s Services and Industries (ASI)’s Chapter of Seventh Day Adventists disbursed US$110 000 to 30 recipients.
ZWUC ASI Chapter finance director, Mr Alson Bhebe said five SMEs have managed to fully pay back funds to the revolving fund.
“Of the US$250 000 revolving fund, in 2024 we received US$150 000. We distributed about US$110 000 to 30 recipients. Five of the recipients have fully paid back and this has allowed us to give five more applicants to start our second round. We are also now funding orders through a short-term order financing. We have four applicants who have received this fund under order financing,” he said.
He said businesses of all their fund recipients have improved performance, while those in retail have increased their stocks and one start-up in horticulture has secured a market.
Mr Bhebe said going into 2025 they will ensure more SMEs are empowered as the innovative revolving fund is poised to catalyse entrepreneurial endeavours and contribute to the economic empowerment of the community.
At the official launch of the Start and Improve Your Business (SIYB) training programme in Bulawayo last month, Bulawayo Minister of State for Provincial Affairs and Devolution, Judith Ncube said formalisation of MSMEs was critical.
“The Government is in the consultation process to find a strategy of formalisation for the informal sector through the National Development Strategy 1 (NDS1) which involves support of informal workers, working towards an increase in incomes and developing decent working space for all those working in the informal economy,” she said.
“Consultative meetings are underway in different provinces around the country in order to get valid contribution from the informal sector in Zimbabwe in a bid to facilitate the transition of informal to formal.”
She said the Government has also come up with several initiatives towards promoting the informal sector, some of which included the Reviewed MSME Policy (2020-2024) premised on 12 Strategic pillars to support the development and growth of MSMEs.
The minister said empowering MSMEs with skills will drive economic development and create employment opportunities for the youth and women.
Women Affairs, Community, Small and Medium Enterprises Development Minister Monica Mutsvangwa is on record stating that the Government has prioritised MSME growth through the National Development Strategy and the National Micro, Small and Medium Enterprises Policy Framework.
She also said the Zimbabwean Government is reviewing the SME Act to improve the operating environment for MSMEs, while they aim to enhance digitalisation, access to finance, and overall capacity for MSMEs.
