Zimpapers Logo

Nokuthaba Brita Ncube, [email protected]
GOVERNMENT will transform idle manufacturing infrastructure across the country to provide decent workspaces for Micro, Small and Medium Enterprises (MSMEs) and other businesses that require adequate operating space.

Private sector players own a majority of closed industrial spaces, and the Government has hinted at taking steps to ensure proper procedures are followed to have such assets fully utilised for the benefit of the economy.

Zimbabwe suffered massive de-industrialisation in the last two decades due to several factors including sanctions, which resulted in massive loss of jobs leading to the establishment of many MSME operators.

Providing decent workspace helps decongest the streets and some of the poor places where MSMEs work.

The plan to make use of idle manufacturing infrastructure is contained in the Zimbabwe Industrial Reconstruction and Growth Plan (ZIRGP) report, which was issued recently by the Ministry of Industry and Commerce and outlines broader efforts to boost the growth of the local manufacturing sector.

MSMEs have become a major pillar of the economy and are expected to aid the growth of exports to US$14 billion per annum by 2030.

This makes enhancing support for the sector a top priority as Zimbabwe moves the economy up the value chain.

According to the ministry’s ZIRGP report, there is a lot of idle manufacturing infrastructure throughout the country, mainly empty factory shells and rail infrastructure, which has remained unutilised for quite a long time.

“Government, during the ZIRGP period, will take stock of such infrastructure to procedurally make it available to SMEs, potential investors and businesses in need of operating space,” reads the report.

Small and medium enterprises (SMEs) operate in an open space in Makokoba, Bulawayo

“Where such infrastructure belongs to Government institutions such as National Social Security Authority (Nssa) and National Railways of Zimbabwe (NRZ), such institutions will be engaged with a view of turning these assets into productive assets for the economy.”

By unveiling the idle manufacturing infrastructure needed to support MSMEs, the Government is laying the foundation for sustained economic growth and progress toward achieving Vision 2030.

Limited appropriate workspace has been a major challenge affecting the growth of MSMEs.

According to the 2021 MSMEs Survey and the 2022 Finscope Survey, MSMEs contribute over 60 percent of the Gross Domestic Product and employ 4,8 million people on a full-time basis.

Under the current decentralisation and devolution trajectory, MSMEs play a pivotal role in contributing to provincial GDPs, employment creation and balanced development as they constitute the majority of enterprises operating throughout the provinces.

MSMEs are also acting as pathfinders in regional and international markets through participation in exhibitions and fairs such as the Dubai Expo 2020 and the upcoming Tokyo Expo 2025.

With the large expanse of the sector, there is a huge demand for workspace by MSMEs as they are contributing immensely to job-creating infrastructural development projects in major cities, towns and growth points across all provinces and districts.

Government, however, recognises various challenges faced by MSMEs and remains committed to creating a conducive environment for their businesses to prosper.