The Sunday News
Njabulo Bhebe, Sunday News Correspondent
SMALL to Medium Enterprises (SMEs) in Insiza District, Matabeleland South Province have been challenged to formalise their businesses to enable them to benefit from Government schemes while contributing to the country’s fiscal revenue.
This comes after the district has witnessed an increase in the number of SMEs activities but a majority of them still operate informally therefore are excluded from financial aid from the Government.
In an interview with Sunday News, Insiza District Chamber of SMEs chairperson Mr Douglas Chintengo said business activities in the district was largely SMEs activities but many of them were operating informally.
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“The number of SMEs activities in the district has largely grown with majority of business being that of SMEs. Currently the major challenge we are facing is the issue of formalisation, a few players are formally registered and operating in accordance with Government stipulated regulations.
“This makes the bulk of operators to be informal operators and as a representative board we are working to ensure that all SMEs are formally registered so that they contribute to the country’s GDP,” said Mr Chintengo.
He further alluded that SMEs in the district were failing to benefit from Government initiatives targeted towards the sector due to the failure of formalising their operations.
“The current environment in the country is in favour of SMEs hence the Government has made strides in supporting economic inclusion of the SMEs sector.
However, in our district we are yet to enjoy such spoils due to a number of our members not formalising their operations as a result we have failed to access Government loans directed to the sector,” he said.
Formalisation has been identified as a key to the growth of SMEs as it allows the Government and local authorities to channel adequate resources towards the industry.
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Commenting on the prevailing operating environment for SMEs, Mr Chintengo said the environment was conducive enough as they were working closely with the Insiza Rural District Council in availing operating space for SMEs.
“The local council has been supportive towards the growth of SMEs through providing us with operating space.
As we speak they are working towards availing operating space for SMEs in the newly constructed suburb of Bekezela which will go a long way in expanding SMEs activities in the district,” said Mr Chitengo.
Mr Chintengo said as SMEs under the Insiza Chamber of SMEs they were continuously engaging the Government in terms of financial assistance through grant of loans so that they could expand their businesses.
The SMEs sector plays a key role in the development of the country’s economy as it contributes over 60 percent to GDP and employ over 75 percent of the total workforce.
