Staff Reporter
The Ministry of Women Affairs, Community, Small, and Medium Enterprises Development has outlined key strategies to bolster Zimbabwe’s Micro, Small, and Medium Enterprises (MSME) sector.
Addressing the third Small and Medium Enterprises Development Corporation (SMEDCO) Annual General Meeting at the Management Training Bureau in Msasa yesterday, Minister Monica Mutsvangwa highlighted the critical role of SMEDCO in driving the nation’s Vision 2030 goals.
“SMEDCO is the springboard to propel development and sustainability of the MSME sector by providing the much-needed working capital,” Minister Mutsvangwa said.
She commended SMEDCO for its 2023 achievements, including the launch of its new headquarters, innovative resource mobilisation efforts, and workspace development initiatives for MSMEs.
The Minister called for intensified efforts to secure funding from local and international financiers.
“Due to limited budgetary support from the Government, SMEDCO must deepen efforts in mobilising financial resources. The Ministry is ready to jointly approach financiers through the Ministry of Finance, Economic Development, and Investment Promotion,” she stated.
Concessionary loans with flexible payment terms, she added, are crucial for supporting MSMEs effectively.
Minister Mutsvangwa identified outdated equipment as a significant barrier to MSME growth.
“Approximately 72% of MSMEs use hand tools and manual machinery, limiting their productive capacities. SMEDCO should establish an MSME Equipment Support Scheme to provide modern small-scale equipment,” she urged.
This initiative would enable MSMEs to enhance their competitiveness locally and internationally.
The Minister underscored the importance of equipping MSMEs with essential skills.
“Running a successful business requires more than passion. Financial literacy, marketing, and strategic planning skills are critical. SMEDCO must intensify its training programs to ensure participants are well-prepared,” she emphasised.
Mentorship and advisory services, along with structured training, were highlighted as vital components.
Minister Mutsvangwa urged SMEDCO to capitalise on opportunities presented by the African Continental Free Trade Area (AfCFTA).
“The low participation of MSMEs as exporters is attributed to limited access to finance and market knowledge. By accessing value chain financing, MSMEs can effectively tap into regional markets and contribute to the continent’s economic development,” she noted.
Transparency and accountability were highlighted as critical to SMEDCO’s operations.
“AGMs play a vital role in fostering transparency and disclosures. They are a platform to take stock of successes and failures over the past year,” the Minister stated.
She encouraged the SMEDCO Board to convene annual meetings to strengthen corporate governance practices.
Minister Mutsvangwa concluded by reiterating the importance of a robust MSME sector in Zimbabwe’s economic transformation.
“For our nation to achieve its Vision aspirations, our economy must be anchored on a robust, well-coordinated, and supported MSME sector. Let us all come together to strengthen SMEDCO’s ability to execute its mandate,” she said.
The AGM underscored SMEDCO’s pivotal role in fostering economic growth and development, with renewed commitments to addressing the challenges facing MSMEs in Zimbabwe.
