SMEs drive Zimbabwe’s economic growth, contributing over US$8.6 Billion to GDP

Sikhulekelani Moyo, Zimpapers Business Hub

Small and Medium Enterprises (SMEs) continue to show resilience and potential to grow, with the sector harnessing opportunities to expand their businesses from backyard to the mainstream economy.

The SME sector in Zimbabwe has grown tremendously over the years and now contributes more than US\$8.6 billion to the Gross Domestic Product (GDP), as well as employing 4.8 million people on a full-time basis.

In an interview during the recently held Matabeleland North Investment Conference, SMEs provincial chairperson, Mr. Vethi Tshuma, said they are regularising so that they get relevant papers that will help them benefit from other Government initiatives.

“Our goal is to harvest a wealth of knowledge, in terms of business perspective. As SMEs, we are pulling off from the backyard industry into the mainstream of business,” said Mr. Tshuma.

“In our aim, we want to create solid village units, in such a way that each and every village should be able to produce either horticulture, uniform production for local schools, books, and detergents. We want to produce these within our wards.

“By so doing, we will be empowering a lot of people and improve livelihoods, as we march towards an upper middle-income class by 2030.”

Globally, MSMEs make a significant contribution to economic growth and sustainable development as they represent about 90 percent of businesses and over 50 percent of employment, which later contributes up to 40 percent of national income (GDP) in emerging economies.

It is for this reason that the Government under the Second Republic recognises the role played by the sector and has availed resources to upscale its growth.

Mr. Tshuma applauds the organisers of the Matabeleland North Investment Conference, saying it gives them an opportunity to learn and create partnerships, where he said, if investors need suppliers or services, they should engage with SMEs from the province.

“We are reviving different skills from former employees who were laid off from different companies, which also helps to revive the economy as we will be feeding into the mainstream economy,” said Mr. Tshuma.

The Matabeleland North Investment Conference saw infrastructure development taking center stage, with the province seeking investments in different infrastructure, including roads, housing, schools, among other things.

Mr. Tshuma said infrastructure development is critical with the need to create decent workspaces for SMEs.

“With this conference, we are certain there are people who will come and invest in infrastructure development, where we can work from without any challenges,” said Mr. Tshuma.

Under the National Development Strategy 1 (NDS1), the blueprint that guides the country’s development between 2021 and 2025, unlocking the potential of SMEs is one of the critical steps towards fostering inclusive economic transformation.

SMEs have become dominant economic players in Zimbabwe, but a majority of them still operate informally. It is for this reason that the Government has sought to prioritise the development of SMEs and facilitate their formalisation.

This would be achieved partly through the provision of decent workplaces, facilitating access to finance, skills training, and information sharing, among others.

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