By James Muonwa l Mashonaland West Correspondent
LOCAL authorities have been called upon to prioritise provision of safe and decent work stations for micro, small and medium enterprises (MSMEs), which have huge potential to leapfrog sustainable development and eradicate poverty.
The clarion call was made by Women’s Affairs, Community, Small and Medium Enterprises Development Minister, Monica Mutsvangwa during the MSMEs International Day commemorations held in Chinhoyi this week.
She highlighted the importance of shelter in harnessing the full potential of the sector, which provides employment for vulnerable groups such as women, youths and people with disabilities.
“As a ministry, we always emphasise the importance of workspace and that is why we continue to implore local authorities that there is a win-win situation when you provide land to MSMEs, which will inturn mobilise money and build infrastructure. Councils will then collect revenue from them,” she said.
Mutsvangwa said this year’s international theme: “Leveraging the power and resilience of MSMEs to accelerate sustainable development goals and eradicate poverty in times of multiple crisis” resonates with the inherit ability of MSMEs of transforming economies.
The minister, however, lamented the challenges faced by emerging businesses which were in recent years compounded by health emergencies such as Covid-19 and natural disasters like the El Nino-induced drought.
“Despite your immense potential to significantly contribute to economic development, we know MSMEs continue to face several obstacles that hinder their productivity and competitive edge.
“These obstacles encompass restricted and costly financial options, limited market opportunities, deficiencies in management and technical expertise, inadequate workspace.”
The high cost of utilities and an array of complex regulatory demands were also noted as retarding progress of the sector.
MSMEs catapult nations to prosperity hence Zimbabwe has taken a deliberate policy stance to support them, Mutsvangwa noted.
“Acknowledging the pivotal role of MSMEs as catalysts for economic expansion, government developed the MSMEs policy framework which underscores the efficacy of channelling more support to the sector.
“MSMEs are catalysts for industrialisation and modernisation…,” Mutsvangwa said.
Commenting on the quality of products exhibited during the event, the minister expressed confidence in the capacity of manufacturers, but urged them to continue improving on packaging and labelling.
“Improve on your packaging and labelling as we upscale our efforts to export the products to Southern African Development Community (SADC) markets and Common Market for East and Southern Africa (COMESA).
“We also want to take advantage of the Continental Free Trade Area (CFTA), of which our government has already signed an agreement,” she said, reiterating the need for MSMEs to participate in the upcoming SADC Industrialisation Week to be hosted August in Harare.
Speaking at the same event, United Nations Resident Coordinator, Edward Kallon said MSMEs are backbones of economies globally while their significant contributions to job creation, economic growth and empowerment of vulnerable populations are undeniable.
“According to the International Labour Organisation (ILO), MSMEs make up more than 90% of all businesses and account for a staggering 60 to 70% of employment and roughly 50% of global gross domestic product (GDP).
“These figures alone underscore the profound impact of MSMEs in fostering economic resilience and sustainable development,” said Kallon.
He said local enterprises have weathered multiple crises, including vicious cycles of hyperinflation, and continue to thrive providing livelihoods and fostering community development.
Kallon noted barriers hindering MSMEs from reaching their maximum capacity, before proferring policy interventions.
“To harness full potential of MSMEs and align them with Sustainable Development Goals (SDGs), strategic interventions are required with few policy recommendations such as enhancing access to finance and financial inclusion with affordable credit and comprehensive banking services.
“There is need to promote technology adoption, improve ICTs infrastructure, facilitation of market access and simplifying trade procedures and reducing barriers. There is also need to improve the supply chain and integration by partnering bigger firms. Last but not least, streamline company registration processes to encourage formalisation and offer tax breaks,” said Kallon.