Zimpapers Logo

Nqobile Bhebhe, [email protected]

MINISTER of Women Affairs, Community, Small and Medium Enterprises Development, Monica Mutsvangwa has underscored the need to address the cost of doing business saying the current rates are stifling growth in the sector.

Speaking at the ongoing inaugural summit themed “Building Sustainability Towards Enhanced Productivity and Competitiveness in Zimbabwe,” Minister Mutsvangwa noted that her Ministry is collaborating with stakeholders to reduce business costs.

She said this is part of a whole-government approach strategy.

The Minister pointed out to delegates that challenges such as the high cost of retooling and limited access to finance hinder SMEs, making it difficult for them to hire skilled labour.

This, in turn, affects the quality of their end products.

Minister Mutsvangwa was presenting on “Using Novel Financial Architecture to Mobilize Resources for Women and Youth in Business to Enhance Sustainable Industry Productivity and Competitiveness.”

She stressed the importance of innovation and competitiveness for SMEs, adding:

“The other issue which SMEs are finding in women-owned businesses to employ skilled and qualified labor for SMEs then becomes very expensive. That does not promote formalisation. So the cost of retooling is also a challenge to most SMEs.

“You find that a lot of them are using inappropriate technology and that obviously would affect their competitiveness.,” she said.

She added, “Our country has increasingly been shaped by the micro, small and medium enterprises which contribute approximately 60 percent to the GDP of this country.

“If you look at the number of SMEs, all that they require is to be supported so that they can eventually grow.

“This sector not only generates jobs but also drives investment. It fosters innovation, enhances exports and strengthens economic resilience.”