The Sunday News
Judith Phiri, Business Reporter
A delegation of businesspeople from India recently met Micro, Small to Medium Enterprises (MSMEs) from the Matabeleland region where it was revealed that more than 20 000 local players will soon be able to access modern machinery and markets.
The Indian delegation is said to have shown keen interest to work with local MSMEs.
In an interview, Bulawayo Chamber of SMEs chairperson Mr Coustin Ngwenya said the meeting, that was attended by MSMEs from Bulawayo, Matabeleland South and Matabeleland North saw them agreeing on a number of key areas with the Indian delegation.
“The engagement between the MSMEs and the business delegation from India is a developing relationship which if successfully implemented the MSMEs will benefit in terms of access to modern machinery, knowledge sharing through trainings and access to Indian markets.
“The relationship is still being developed and at full strength more than 20 000 MSMEs could benefit,” said Mr Ngwenya.
He said the delegation agreed to assist the locals in terms of technology, focusing on areas such as waste management, fruit juice and food processing.
Other priority areas include plastic recycling, solar energy, mining, low-cost housing construction, business advisory and training.
Mr Ngwenya said they were also continuously engaging the Standards Association of Zimbabwe (SAZ) to get assistance with improving the quality of products produced by the MSMEs so that they compete on the global market.
He said: “As a chamber we are working on tapping into the global market. We are working on necessary fundamentals like improving the quality of products produced by the MSMEs so that they compete on the global market.”
Meanwhile, the country’s SMEs sector has been highly regarded in economic sustenance.
According to the 2022 FinScope MSMEs and Consumer surveys carried out by Finmark Trust the Zimbabwean economy was now dominated largely by MSMEs, who contribute up to US$8,6 billion (60 percent) to the Gross Domestic Product.
Finmark Trust is an independent non-profit trust whose purpose is to make financial markets work for the poor, by promoting financial inclusion and regional financial integration.
Formally served MSMEs increased to 95 percent in 2022 from 18 percent in 2012, while the exclusion gap in the sector drastically reduced to three percent from 43 percent over the eight-year period.
The Reserve Bank of Zimbabwe (RBZ) Deputy Governor, Dr Jesimeni Chipika, is on record saying the notable improvement was buttressed by the Central Bank’s inventiveness ranging from the empowerment seed funds set up by the bank, promotion of know-your-customer (KYC) requirements, financial literacy programmes and the digitisation drive.
“The message we must draw from the Zimbabwe 2022 MSME and consumer FinScope survey results is clear as highlighted in the National Financial Inclusion Strategy 2 (NFIS 2), that as a country, we have made significant progress in terms of access to finance, and going forward, we are riding on the success of NFIS 1 to improve on usage of quality financial services on a sustainable basis by all Zimbabweans,” said Dr Chipika.
The RBZ launched NFIS 1 in 2014, targeting the underserved and marginalised segments of the population.
The development and implementation of NFIS 1 was aimed at ensuring the existence of an inclusive financial sector with broadened access to and use of financial services by all with the view of engendering social and economic development.
According to the apex bank, financial inclusion will continue to be a policy priority to build resilient systems to make the post-pandemic recovery more inclusive and sustainable.
NFIS 2 launched last month running from 2022 to 2026 will deepen the use of financial products in the informal sector to achieve the aspirations of the National Development Strategy 1 (NDS1) and make those in the sector more prosperous as a result.
