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Minister Sithembiso Nyoni

Charity Ruzvidzo Business Reporter
MORE than 300 small and medium enterprises (SMEs) have so far been registered in Bulawayo as the process to formalise the informal sector continues. The registration exercise started early this month and is a countrywide process aimed at enhancing the SMEs contribution to the Gross Domestic Product.

Bulawayo Chamber of SMEs provincial chairperson Energy Majazi said most of those that had registered were SMEs from the central business district.

“We’ve so far registered 320 SMEs since the beginning of the exercise. The response by SMEs operating in the CBD has been overwhelming.

“We hope more people will continue to come forward for the registration by the end of the month,” he said.

He said the registration centres also served as sensitisation centres.

“We’ve set up more than 20 registration centres in the city. These centres are also there to sensitise people about the formalisation process.

“We’re not pushing SMEs to register without understanding the importance of the programme. We educate them on how their small contribution will impact in developing the country,” he said.

According to Small and Medium Enterprises and Cooperative Development Minister Sithembiso Nyoni, SMEs in Bulawayo contribute 67 percent to the city’s revenue.

Formalising SMEs operations is expected to go a long way in tapping into money circulating outside the formal channels to improve liquidity in the economy.

Since the adoption of a multicurrency system in February 2009, the country has been reeling under tight liquidity.

Although SMEs make up the larger chunk of the economy, most of the players in the sector are operating informally.