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Minister Sithembiso Nyoni

Prosper Ndlovu Business Editor
THE government is struggling to measure the economic contribution of the estimated 3.8 million players in the informal sector as the bulk of them are not registered.
Small to Medium Enterprises (SMEs) and Cooperative Development Minister, Sithembiso Nyoni told Business Chronicle on Friday that her ministry was rolling out a countrywide registration programme for SMEs to pave way for improved support for the sector and hasten their formalisation to enhance its contribution to the Gross Domestic Product (GDP).

“We did a survey which said there are 3.8 million SMEs. Now we want to see them so that we can help plan for their workspace and plan for their support,” she said.
“We’re happy with their contribution but nobody is there to measure it. For instance Bulawayo has 15 clusters of the informal sector and we need to know so much comes from each cluster and be able to account for their contribution in a systematic way.”

She said that SMEs were contributing 67 percent of Bulawayo’s revenue an indication of the sector’s key role in the national economy at large.
“If that is the case how much of that is going to the national fiscus? I want all people to recognise they are contributing but we’ve to be organised.

“The SMEs Bill and policy is out and now it’s time to implement that. We’re moving from province to province and there is a government team doing that to support us, so we are doing that together,” she added.

Minister Nyoni said formalising the informal sector would promote growth and allow a majority of people to be in charge of the economy.
“By this formalisation, organisation and graduation, we’re recognising their contribution into the economy. Indeed once organised like that we will them inject support and have their contribution in a dignified way,” she said.

The registration process, the minister said, would weed out malpractices and dignify operators some of whom are being cheated by “fake” authorities.
“For now they are being cheated but they don’t recognise it. So many rents and payments they are making, some of which are illegal because they don’t know whether they should pay or not,” said Minister Nyoni.

“Some people claim to be this and that, some claim to be Zimra. We want to stop all that. We want SMEs to be respected for what they are and the contributions they have made.”

She urged quick formalisation of the sector and creation of clusters and committees to enhance accountability as part of the work and business ethics.
The ministry has also adopted a linkage programme between SMEs and established companies to boost local trade and skills exchange.

“The idea is some SMEs don’t know that good products come from Zimbabwe and I have been saying the problem is big companies are not advertising as they used to,” said the minister.

“When I took SMEs to Tregers, they were shocked that the bags the company was making were cheaper and better than what they buy in China.”
She challenged local authorities to create more space for “Buy Zimbabwe” centres where SMEs can go and order their wares from.

“Then people will realise Zimbabwean products are better and cheaper. Products from outside may be cheaper but they don’t last, anything that doesn’t last doesn’t give you dignity.

“So we want products that will give our people dignity,” added Minister Nyoni.
Instead of harassing and chasing after vendors, said the minister, local authorities should appreciate their role by improving their facilities.
“Some local authorities are just scooping money out of the people and not ploughing back.

“By re-organising them we are forcing people to plough back to the poor so that it gives them dignity of the workspace,” she said.