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Patrick Chitumba Senior Reporter
THE Indian government has urged Zimbabwe to consider giving incentives to young talents and small to medium enterprises (SMEs) to attract more innovations for the economic growth of the country. Speaking during the International Business Conference at the Zimbabwe International Trade Fair (ZITF) on Wednesday, the Indian Ambassador to Zimbabwe, Jeitendra Tripathi, said incentives had been proven to be a major contributor to attracting innovations to his country.

“The Zimbabwean government should give incentives to young talents and the small to medium enterprises. We want new ideas from the small to medium enterprises. Incentives will attract more innovations and innovations will help the economy grow,” he said.

Ambassador Tripathi said it was sad to note that with all the mineral resources Zimbabwe had at its disposal, the country was failing to produce pins.

“You are not even making pins with all the natural resources you have. The machine costs only $800,” he said.

According to a 2012 World Bank report, 46 percent of the country’s 13 million people run individual, small or medium-sized enterprises. The survey established that 5,7 million people are working in the SME sector with at least 2,8 million being owners of enterprises and 2,9 million employees.

In India, about 40 percent of the workforce is employed in the SMEs sector. SMEs contribute about 45 percent to India’s manufacturing output while also accounting for 40 percent of its total exports.

The ambassador said his country was going to invest in a state of the art incubation centre for SMEs in the country.

He said the centre would have over 20 technologies and 27 machines.

“We have just finished training some SMEs in the country in various trades, now we want to open a centre that will leave them able to venture into wax making, honey making, candle making, soya milk making among other easy to do businesses. All that can be done here,”  Ambassador Tripathi said.

Lack of funding in the country was also a contributing factor to the folding of many SMEs.

“Banks should fund for example women in the village who are into honey making. That project might cost $2,000. So let the banks lend that money to the village and they will not default.

“Banks can also purchase say a tractor for a farmer and hold on to the mortgage until that farmer pays all the money back,” the Indian envoy said.