The Sunday News
Dumisani Nsingo, Senior Business Reporter
RETAILERS and players in the informal sector have welcomed the Government’s move of coming up with a fund to cushion small to medium enterprises (SMEs) against the impact of the 21-day national lockdown aimed at curbing the spread of the novel coronavirus (Covid-19).
President Emmerson Mnangagwa declared a 21-day national lockdown to prevent the spread of Covid-19. However, bearing in mind the impact it was likely to cause on informal players and SMEs, Government moved in to mobilising a cushioning package for the sectors.
In Zimbabwe, the informal sector is a major player in the economy as it contributes an estimated 48 percent of the Gross Domestic Product (GDP) and an estimated 42 percent of the total national employment. Confederation of Zimbabwe Retailers (CZR) president Mr Denford Mutashu said the move by Government to consider cushioning SMEs and the informal sectors against loss of income for subsistence was largely driven by their contribution to the growth of the country’s economy.
“It’s a welcome development as Government realises most SMEs are incapacitated by the lockdown, yet they survive from hand to mouth. SMEs’ contribution to the general economic well-being should never be underestimated and it has captured most of the unemployed youths and women,” he said.
Mr Mutashu further applauded Government for temporarily re-introducing the use of the United States dollar as a medium of exchange as part of its fight against Covid-19 as it would enable retailers to effectively restock.
“The re-introduction of trading in foreign currency is a welcome development and if the border movement is expedited, there is going to be increased flow of goods into the country. All retailers can also be in a position to pay their local suppliers in forex and restock. However, there is urgent need for a facility for retailers and wholesalers to access forex at interbank and improve their capacity to restock over a short time,” he said.
Bulawayo Vendors and Traders Association executive director Mr Michael Mdladla Ndiweni reiterated Mr Mutashu’s sentiments on the introduction of an SMEs and informal sector funding facility but hinted that there was a need for Government to expedite the process.
“The gesture is a welcome development because it will cushion our members in this difficult period and our prayer is that this process should be expedited, with people being assisted as soon as possible. People should have funding as soon as possible because the situation is very dire at household,” he said.
Mr Ndiweni also called on Government to improve the supply of maize meal so as to avoid the sprouting of queues at shops as this defeats the call for people to practice social distances, one of the measures of preventing against contracting Covid-19.
“Our plea to Government is to deal with the issue of shortage of maize meal . . . so that people avoid the process of queuing for mealie-meal at shops because that increases chances of one contracting coronavirus,” he said.
The Ministry of Women Affairs, Community, Small and Medium Enterprises Development has already called on SMEs and informal sector association to compile lists of members of their associations for submission to its provincial offices.
Women Affairs, Community, Small and Medium Enterprises Development Minister Dr Sithembiso Nyoni said the ministry would include the list of applicants to its data base as part of its efforts of formalising the sector.
“We are a supportive ministry to this cushion fund because when this facility winds up, my ministry will have the responsibility to revive these small businesses and this also gives us an opportunity to have a proper inventory that will also be in the hand of the (Department of) Social Welfare. When we capacitate individuals to access loans, training, work space and linking them to the latest technologies it will be people that we are aware of by virtue of belonging to certain associations,” she said.
