MSMEs Financial Inclusion to be Improved.
The Zimbabwean government is set to increase its support for micro, small and medium-sized enterprises (MSMEs) by improving financial inclusion and access to markets, according to the Minister of Women Affairs, Community, Small and Medium Enterprises Development, Dr Sithembiso Nyoni.
In her speech at the International MSME Commemoration Day, Dr Nyoni highlighted the importance of MSMEs to the country’s economy and emphasised their significant contributions to employment, wealth creation, and poverty reduction.
“Despite the huge contributions made by MSMEs, the sector is saddled by numerous challenges”, Nyoni acknowledged, including low productivity and competitiveness, high costs of utilities and limited access to credit.
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Collaboration & Effective Support For SME Sector
Furthermore, citing the recently launched Collateral Registry System, Nyoni noted that the National Financial Inclusion Strategy had seen a significant decrease in financially excluded MSMEs, from 43% in 2012 to 3% in 2022.
Nyoni also highlighted the need for increased collaboration between government and other stakeholders in the SME space to develop and implement effective support programmes.
“Celebrating this International MSME day, bears testimony of the SCOPE4IVC project, the Ministry and other stakeholders’ determination to recognise the sector’s contribution to the nation’s gross domestic product, economic growth, poverty reduction and sustainable livelihoods,” Nyoni stated.
Formal Banking
Additionally, Nyoni said the Government will continue to work with formal banking institutions and digital financial services providers in deepening financial inclusion anchored on the strengthened credit information infrastructure.
The Zimbabwean government is also collaborating with other partners, promoting exports through participation in international trade fairs and providing funding through empowerment initiatives like SMEDCO, the Zimbabwe Women Micro Finance Bank and Community Development Fund.
Additionally, Nyoni highlighted the need for increased collaboration between the government and other stakeholders in the SME sector. This partnership will develop and implement effective support program.
Competitiveness
Strengthening Competitiveness and Potential for Export of Inclusive Value Chains Project in Zimbabwe (SCOPE4IVC) head of project Minenhle Ngwenya, also supported the idea of supporting MSMEs and acknowledged the contribution of the project’s partners, highlighting that the government ministry alone could not have achieved the three programs being carried out in the country.
Moreover, Ngwenya revealed that the objective of the project is to enhance seamless integration into regional and international markets. It supports three value chains that are mbambara nuts, chilli and marula. SCOPE41VC has trained over 4,000 smallholder farmers, most of whom are women. The project aims to improve the competitiveness and export capacity of SMEs in selected value chains.
Ngwenya outlined the project’s success, including an increase in production, efficient product development, and improved access to appropriate pricing for products. He also highlighted the milestone achievement of ISO certification, which allows for easy access to traditional markets.
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Supporting SMEs
Ngwenya concluded by emphasizing the importance of continuing to support SMEs, stating, “To achieve the certification standard, we made an investment, and we were happy to say that we have achieved it because we want to see our produce make its way into European markets, which actually covers the world.”
The event was organized by the SCOPE4IVC project. Service providers like Zimtrade, Standards Association of Zimbabwe, Zimra, and Portify Investments aimed to enhance the capabilities of MSMEs.
Lastly, the event was held under the theme: “Galvanizing MSMES Worldwide by Supporting Women and Youth Entrepreneurship and Resilient Supply Chains”.
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