Major boost for SMEs

The contraction of economic activity and de-industrialisation has resulted in a thriving SMEs sector now widely seen as one of the viable sources of employment. Given the benefits of a vibrant SME sector to the economy, it is imperative that banks are supportive of this sector through tailored products including loans and advances especially supply contract and order financing.

According to the financial Gazette, he noble decision by the Central Bank comes at a time when more than 70 percent of the working population in Zimbabwe is believed to be self-employed but faces varying difficulties in funding. Small to medium scale enterprises, according to Ministry of Finance figures, account for 50 percent of Zimbabwe’s Gross Domestic Product.Microfinance and mobile money services are being seen as one of the solutions but not the sole answer to poverty alleviation.

Elizabeth Tabethe , SA Deputy minister in  conference.

SOUTH Africa has entered into an agreement with the local Ministry of Small and Medium Enterprises and Cooperatives to look at possibilities of reviving some of the identified distressed companies in Bulawayo.

This agreement will see local small to medium scale enterprises traveling to South Africa to learn best business practices and incubate ideas on how to grow their business ventures.

 According to local statistics, small to medium scale enterprises provide 60 percent to Zimbabwe’s gross domestic product and 50 percent of the country’s total employment, meaning the enterprise play a critical role in the livelihoods of people.

“It is therefore critical that we utilize the advantage of our geographical proximity to focus on targeted high growth markets with the objective of creating investment opportunities for Zimbabwe companies to partner with their South African counter parts to advance the export opportunities of Zimbabwean products,”said Elizabeth Thabethe  South African Deputy Minister of Trade and Industry.