By Evans Dakwa
The Government of Zimbabwe is alive to the problems being faced by the Micro, Small and Medium Enterprises (MSME) and is instituting measures to alleviate these hurdles, Minister Monica Mutsvangwa has said.
As she delivered her key note address at the Zimbabwe Integrated Traders Association (ZITA) organised breakfast meeting, the Women Affairs , Community, Small and Medium Enterprises Development Minister said her ministry is not only aware of these challenges but working closely with relevant stakeholders to address them.
“Government is aware of the impediments affecting MSME which include high levels of informality; limited access and high cost of finance; lack of marketing skills and marketing knowledge; lack of access to appropriate infrastructure; an unfavourable regulatory environment; inappropriate technology and lack of basic business management skills.”
“Guided by the MSME Policy Framework, a number of interventions are being implemented by the Ministry in collaboration with relevant stakeholders to promote the development and growth of the sector, ” said Minister Mutsvangwa.
She also indicated high on the agenda of her Ministry is the formalisation of MSMEs , a sector that contribute 60% to the country’s Gross Domestic Product.
” The Ministry working closely with other Government Departments is accelerating formalization of MSMEs in areas of business registration, taxation, licensing among others. This is meant to not only enhance MSMEs access to key business development services but also as a domestic resource mobilization drive. Furthermore, Government is developing a Formalisation Strategy which outlines a comprehensive framework to guide interventions by various stakeholders to accelerate the process of transitioning informal enterprises to formality, ” she added.
The 2021 MSME Survey and 2022 Finscope Survey highlight phenomenal growth of the sector with contribution of more than USD8.6 billion to the GDP and employment of 4.8 million people on full time basis. The formalisation of the sector is one key element towards the country fully tapping into the potential it has and birthing of huge corporates out of MSMEs.