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Minister Patrick Chinamasa

Business Editor
ZIMBABWE has mobilised nearly $40 million towards supporting the growth of the small to medium enterprises (SMEs), which are fast becoming a strong pillar in the economy.

Finance Minister Patrick Chinamasa said on Thursday that unlocking the potential of SMEs was critical as he announced resource mobilisation efforts and other business management supportive measures for the sector.

He said SMEs played a significant role in the economy as they were sustaining their contribution to growth in terms of employment creation, GDP and poverty alleviation.

“The first half of 2016 witnessed the creation of the Small and Medium Enterprises Revolving Fund, which is administered by the Ministry of Small and Medium Enterprises through the Small and Medium Enterprises Development Corporation.

“This was complemented by various banking sector SMEs windows as well as value chain programmes linking SMEs to large established companies,” said the minister in his 2016 Mid-Term Fiscal Policy statement.

“Notable examples include the Infrastructure Development Bank of Zimbabwe, with an SME loan facility of $30 million, and a $10 million localised empowerment accelerated fund co-managed by three banks, namely CBZ, CABS and POSB.”

Surveys indicate that close to five million people could be employed in the SMEs sector with an estimated $7 billion circulating outside the formal banking system.

Given the structural shift in the country’s economy, said Minister Chinamasa, small to medium enterprises “are increasingly becoming a major driver of economic growth and development, enhancing employment opportunities and poverty alleviation”.

Minister Chinamasa added: “It is, therefore, imperative that Government continues to support the sector by addressing the challenges faced by SMEs such as finance, infrastructure provision, technology, management and entrepreneurial skills as well as access to markets.”

The minister said despite fiscal constraints in support of SMEs in Zimbabwe, positive strides to promote the sector were being realised.

He made reference to the operationalisation of the Indo-Zimbabwe G15 Project, training of SMEs in various areas of business management as well as promotion of linkage chains.