Nyoni to officially open SMEs strategic workshop
Minister Sithembiso Nyoni

Minister Sithembiso Nyoni

Business Reporter
SMALL to Medium Enterprises and Co-operative Development Minister Sithembiso Nyoni will officially open a strategic workshop on formalisation of the informal sector in Bulawayo today. The workshop will also see stakeholders reviewing the Co-operative Act tomorrow. “Bulawayo will on Monday (today) host a strategic workshop on formalisation of the SMEs sector while on the following day, we’ll host another half day meeting to review the Co-operative Act,” said an official from the Ministry of SMEs and Co-operative Development.

“The two events will be held at Rainbow Hotel.”

Last year, Minister Nyoni said the government was formalising SMEs operations in order to tap into over $7 billion, which is believed to be circulating in the informal sector.

Against this background, the government has recognised the economic significance of the informal sector’s contribution to the fiscus considering that Zimbabwe’s economy was now skewed towards the informal sector.

The emergence of SMEs comes on the back of an underperforming economy in recent years, which has seen most established companies closing down.

According to the industrial representative body, the Confederation of Zimbabwe Industries (CZI), capacity utilisation in the manufacturing sector last year declined to 34.3 percent from 36.6 percent in 2014.

Capacity utilisation in industry was subdued due to liquidity constraints, erratic power supplies, stiff competition and obsolete equipment among others. Despite the challenges facing industry, CZI has vowed to continue working with the government to address the fundamentals critical in turning around the economy.

As a result, CZI targets to improve capacity utilisation in the manufacturing sector to 65 percent by the end of next year. The Ministry of SMEs is also reviewing the Co-operatives Act so that it tallies with current trends in the economy.

“The Co-operatives Act was promulgated in 2005 and we’re reviewing it so that it moves in line with the current trends,’ said the official.

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