MSMEs
Minister of Women Affairs, Community, Small and Medium Enterprises Development, Sithembiso Nyoni has implored for the formalization and expansion of MSMEs so that they can boost the national economy.
While speaking at launch of catalysing Economic Development through the informal Sector (CEDIS) being implemented by Mercy Corps on 6 April, 2023 at Cresta Churchill Hotel, Min Nyoni said that the informal sector needed to formalise, grow, and integrate into the mainstream (formal) sector.
“We are working with informal sector with two objectives in mind, the first one is to formalise and enter the mainstream sector and the second one is to grow and contribute significantly to the economy,” said Min Nyoni.
Min Nyoni also urged the informal sector to embrace digital technology as another way of fulfilling desire for a visible work space. If the MSMEs and informal sector go digital due to the lack of vending space. If they go digital they can then work from their dining room tables to reach their markets.
Growth
Moreover, executive director of the Bulawayo Vendors and Traders Association, Michael Ndiweni asked for a reform of the regulations governing the informal sector to help speed economic development in Zimbabwe.
Additionally, speaking at the launch of Mercy Corps’ CEDIS program, which will be carried out in the informal sector, on April 6, 2023 at Cresta Churchill Hotel, Ndiweni remarked the need to set a laws that are conducive to informal traders.
“Review bylaws that govern informal sector as it is a critical opportunity to further catalyse economic development through the informal sector among other factors”, stated Ndiweni.
Changing Bylaws
Ndiweni asked governing bodies to change their bylaws to allow informal traders to operate in accordance with the nation’s current economic climate and trading practices.Women’s rights are not respected, as seen by the absence of restrooms at vending locations for them to use when changing their sanitary items. This demonstrates the Bylaws’ lack of gender awareness.
He also requested the City Council to move licensing offices and medical health certificates offices to nearby clinics for easier access, improved services, and cost savings.
In addition, Ndiweni urged Zimbabwe’s insurance providers to provide small- and medium-sized business (SMEs) protection plans. According to Ndiweni, the majority of their members are vulnerable when they retire and must be protected.
“We are requesting various social security schemes for people in the informal economy. If they do not sell various wares and fall ill, they won’t be able to access money to seek treatment.Those who are formally employed contribute to various medical aid schemes, but those in the informal sector don’t have medical aid”, in a statement made by Ndiweni.
Insurance Plans
Furthermore, the bulk of the workforce in the nation works in the informal sector wants insurance plans customized for SMEs. He also said that the plan for a novel social security system has strong support from traders. This is because insurance policies now in place only cover large corporations, not small firms. In situations like these, people lose possessions.
MSMEs have been identified as a catalyst for economic growth in our country as they are major source for economic activities, income generation and employment for our people.
Government Promises
Government promised informal traders pension funds through National Social Security Scheme (NSSA) in 2018. The Voluntary Informal Sector Scheme was targeted at providing pensions to millions of Zimbabweans in the informal sector and was expected to provide a universal social security coverage.
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