MSMEs contributing significantly to economic growth: Cabinet  

17 May, 2023 - 12:05 0 Views
MSMEs contributing significantly to economic growth: Cabinet   Minister Dr Sithembiso Nyoni

The Sunday News

Judith Phiri, Business Reporter  

THE Government has said through enhanced support and the policies of the Second Republic, Micro, Small and Medium Enterprises (MSMEs) are contributing significantly to the process of moving the economy up in line with Vision 2030.

This has resulted in the upward trajectory of the value chain, food and nutrition security, economic growth and stability through production of goods and services, employment creation and the sustenance of livelihoods.

Cabinet on Tuesday received an update on the contribution of MSMEs to Vision 2030, which was presented by the Minister of Women Affairs, Community, Small and Medium Development, Dr Sithembiso Nyoni.

In a post-Cabinet briefing, Minister of Information, Publicity and Broadcasting Services, Monica Mutsvangwa said since 2021, approximately 3.4 million MSMEs have been in operation.

“Their distribution comprises 3 242 570 micro enterprises, 114 591 small enterprises and 1 545 medium enterprises. The enterprises are owned by 4.2 million entrepreneurs. The 15 main economic activities which the MSMEs are conducting comprise wholesale and retail trade; motorcycle, motor vehicle repairing; agriculture, forestry and fishing; and manufacturing,” she said.

“In terms of contribution to the Gross Domestic Product (GDP), the Finscope Survey of 2022 revealed that MSMEs contributed US$8.6 billion to the country’s GDP. In employment terms, over 4.8 million persons comprising women (52.1 percent) and males (47.9 percent) were engaged on a full-time basis in the MSMEs sector.”

The Minister said MSMEs are engaged in light engineering, furniture-making, agro-processing, leather and leather products, clothing and textiles, oils, plastics and chemicals, and food and beverages.

While leading MSMEs hubs include Siyaso, Magaba, Glen View and Gazaland in Harare Metropolitan Province; Kelvin and Makokoba in Bulawayo Metropolitan Province; Sakubva in Mutare.

Minister Mutsvangwa said it was noteworthy that the light engineering sub-sector is producing grinding mills, dehullers, threshers, boremills, oil pressers, boilers, welding machines, transformers, and building materials.

She said the clothing and textiles sub-sector was producing school uniforms, baby wear, protective clothing and corporate wear.

The Minister added: “The nation is being informed that over the last five years, MSMEs have become the major suppliers of cordial drinks, peanut butter, maize and traditional grains meal, honey, dried fruits and tomato pastes, among many other products.”

She said MSMEs are also producing leather products inclusive of school shoes, fashion shoes, belts, bags and wallets, while the chemical industries run by MSMEs are producing large quantities of high-quality detergents, petroleum jellies, methylated spirit, degreasers, paint, sanitisers and plastic containers for packaging.

Minister Mutsvangwa said MSMEs were making a significant contribution towards the National Development Strategy 1 (NDS1) target of growing exports to US$14 billion per annum by 2030.

“Accordingly, Cabinet has directed as follows: that more incentives be provided for the formalization of MSMEs; that business regulatory services, including business registration, be streamlined and decentralised in order to accelerate the formalization process,” she added.

“And that funding capacity be expanded for the Ministry of Women Affairs, Community, Small and Medium Enterprises Development, the Small and Medium Enterprises Development Corporation (SMEDCO), and the Zimbabwe Women Micro Finance Bank.”

The Minister said incentives will be provided to enable finance institutions to extend long-term finance instruments to MSMEs, particularly in the machinery and equipment production business, among other key developments.


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