The Sunday News
Gabriel Masvora Business Editor
THE Government has come up with a law that mandates that at least a quarter of its tenders be awarded to Small and Medium Enterprises as part of uplifting the sector, seen as a vital cog in efforts to revive the economy.Small to Medium Enterprises and Co-operative Development Minister Cde Sithembiso Nyoni told more than 100 SMEs businesspeople from the southern region who graduated with certificates of recognising the level of the growth in Bulawayo on Friday that under the newly enacted SMEs Act at least 25 percent of all Government tenders would be reserved for players in the sector.
“The SMEs Act has been enacted and it states that 25 percent of all Government tenders from all the sectors of the economy should be reserved for smes,” she said drawing applause from the participants who were drawn from Bulawayo, Masvingo, Midlands, Matabeleland North and South.
Cde Moyo said, however, only those who were registered would benefit from the initiative hence the need for players in the sector to regularise operations.
“Only those with certificates from my ministry and those that are registered according to the law will benefit. We want you to grow from being small to big companies.”
The support would cascade to funding, she said, adding that it would also help plug corruption in disbursing of funds from the Small Enterprises Development Corporation.
She said the new law would also enable players in the sector to benefit from opportunities provided by local authorities.
“We are also working with the Ministry of Local Government, Public Works and National Housing to ensure that SMEs get good working space, again only those who are registered formally will be able to get land for working space,” she said.
As the sector grows, said Cde Nyoni, more employment opportunities will be created buttressing Fin Scope research findings that showed that the sector was employed more than five million people.
“Even some media have challenged me on that figure but it is time to prove them wrong. The 2012 survey said there are 2,8 million SMEs employing 2,9 million people with an annual turnover of $7,4 billion. If these people are formalised it will mean that all this money will circulate in the formal banking sector which will be good for economic growth,” she said.
Mines and Mining Development Minister Cde Walter Chidakwa who attended the meeting to welcome SMEs in the mining industry said his ministry would put more resources to support the sector as it was important in the growth of mining.
He said most big companies had no capacity to increase production from what they were already producing but it was only the small scale miners with the capacity to boost output.
“If we are to increase our production, don’t think your How Mine or Caledonia can increase what they are producing by many tonnes.
However, it is the small scale miner who has the capacity. Right now using primitive ways they are able, just three mines are able to hoist a 30 kilogrammes bucket from the ground within minutes. If we can give such people simple equipment that can hoist a tonne or even 500 kilogrammes, imagine how much we can increase production.”
In terms of employment Cde Chidakwa said big corporates were never bothered about creating employment but focused mainly on increasing value for their shareholder.
“If these companies had a way they would employ less as long as they add value to their shareholders. Human resources is the least of their worries so don’t listen to the lies about creating employment. It is you who has the capacity to create employment.”
