The Sunday News
Judith Phiri, Sunday News Reporter
SMALL to Medium Enterprises have been encouraged to utilise the SME Covid-19 Support Fund to improve production and value addition of locally produced goods and products.
Speaking at the Bulawayo Metropolitan assets and working capital handover ceremony in the city yesterday, Minister of Women Affairs, Community, Small and Medium Enterprises Development Dr Sithembiso Nyoni said SMEs should desist from importing products from other countries.
“This business of importing what we can produce must stop. Gone are the days when Bulawayo Metropolitan Province is associated with expensive imported goods. Let us all embrace the SME Covid-19 Support Fund to change our province and country to a prosperous upper middle-class economy by 2030,” said Dr Nyoni.
She added that the ministry together with the Zimbabwe Women’s Microfinance Bank (ZWMB) was working tirelessly to make sure that women and youths are fully equipped with skills to run businesses.
“My ministry and the Women’s Bank are offering Financial Literacy and Business Management training which is key in running a successful business. Women who access loans are taught how to plan, budget, to maintain their business records and to market their produce in a professional and effective manner,” she said.
Dr Nyoni said SMEs were getting machinery to do various projects under a micro leasing loan product.
“The main economic activities being supported include detergent making (sanitisers and soap in response to Covid-19 and beyond), bread making, tailoring (sewing of masks, non-disposable sanitary pads, school uniforms, personal protective clothing etc), peanut butter making, maputi production, market gardening, grinding of maize mealie-meal and stock feed among others.
The ministry and the Women’s Bank offer machinery under a micro leasing loan product. Under the loan the asset purchased becomes the main security for the loan. Once someone defaults the financed asset will be repossessed and allocated to another,” said Dr Nyoni.
ZWMB chief executive officer Dr Mandas Marikanda said the assets that were handed over were locally produced to support local SMEs.
“Today’s disbursement is not in cash but an asset, we have already resolved production for you by providing a loan that caters for all your problems. Not only are we giving you assets but these assets have been produced locally from industries in Harare, Bulawayo and other cities. This should stimulate sustainable consumption and production in our country by using local products and relying less on importing.
Rather we work on exporting our finished product so as to generate foreign currency for economic growth and also contribute substantially to poverty alleviation,” said Dr Marikanda.
Bulawayo Chamber of Small to Medium Enterprises (BCSMEs) chairperson Mr Energy Majazi said SMEs should also be awarded tenders that will sustain them.
The Government through the Ministry of Finance availed $500 million SME Covid-19 Support Fund for SMEs in light of the adverse effects of the Covid-19 pandemic. ZWMB was allocated $25 million to support micro, small to medium enterprises (SMEs).
