Zim fast tracks formalisation of the SMEs sector under five years’ policy project
By Staff Writer
ZIMBABWE has tabled plans to fast track the formalisation of the informal sector under an already existing five years long policy.
Currently, the nation is grouped among the world’s five most informalised nations in the world, a reality which has choked the realisation of se national economic objectives.
This is because the informal sector in the country runs an informal economy which often evades national regulation in its daily operational activities.
MSMEs are contributing significantly to the process of moving the economy up the value chain, food and nutrition security, economic growth and stability through production of goods and services, employment creation and the sustenance of livelihoods.
Since 2021, approximately 3,4 million MSMEs have been in operation, and their distribution comprises 3 242 570 micro enterprises, 114 591 small enterprises and 1 545 medium enterprises.
Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa this week revealed government’s latest commitment to fully tap into the sector’s potential.
“The nation is therefore being assured that under the National Micro, Small and Medium Enterprises Policy running from 2021 to 2025, robust interventions are being implemented to assist the MSMEs sector which has proven to be a global game changer in socio-economic transformation. Accordingly, Cabinet has directed as follows:
“That more incentives be provided for the formalization of MSMEs; that business regulatory services, including business registration, be streamlined and decentralised in order to accelerate the formalization process.
“That funding capacity be expanded for the Ministry of Women Affairs, Community, Small and Medium Enterprises Development, the Small and Medium Enterprises Development Corporation (SMEDCO), and the Zimbabwe Women Micro Finance Bank,” she said.
She said incentives will be provided to enable finance institutions to extend long-term finance instruments to MSMEs, particularly in the machinery and equipment production business.
Resources will also be channelled towards enabling the Standards Association of Zimbabwe (SAZ) to support product and systems certification for products from MSMEs and thereby enhance their regional and international competitiveness.
“The process of mainstreaming MSMEs development in the Devolution Agenda will now be accelerated, with special attention on workspace provision for the various categories of enterprises across all provinces and districts.
“The Ministry is collaborating with universities, innovation hubs and industrial parks to promote technology transfer and the formalization of informal enterprises. Many such enterprises are now registering with the National Social Security Authority for the benefit of their membership, and are opening bank accounts as well as paying taxes,” added Mutsvangwa.
