Harare, (New Ziana) – A recent economic census has shown that the Zimbabwean economy is largely driven by informal micro-businesses, with 76.1 percent of the 204 798 establishments surveyed operating unofficially.
The Economic Census, which was conducted by the Zimbabwe National Statistics Agency (Zimstat) from June last year to March this year is a comprehensive enumeration of business and economic activities in the country, providing insights into the structure of the economy, distribution, and scale of activities at the national, provincial and district levels.
Speaking at the census results dissemination meeting in Harare on Wednesday, Tafadzwa Bandama, Zimstat Director General, reiterated that the Economic Census is a cornerstone of national planning and policy formulation and evaluation.
“The results are critical for identifying growth opportunities in the country, mapping investment strategies and potential in the country, and addressing structural challenges within the economy to inform evidence-based and decision-making in the country,” she said.
According to the census, 87.9 percent of the establishments were micro-enterprises, with only 18.9 percent of these operating formally. The wholesale and retail trade sector emerged as the largest contributor, accounting for 73.13 percent of all establishments, followed by the manufacturing sector, which comprised 8.24 percent of the total.
Presenting the findings, Mationesa Phiri, the ZIMSTAT director for production statistics noted that the categorization of formal and informal establishments was based on registration with the Registrar of Companies, Registrar of Cooperatives, Zimbabwe Revenue Authority, or National Social Security Authority, as well as the keeping of accounting records.
“We classified our formal participants as those who are either registered by the Registrar of Companies, the Registrar of Cooperatives, as well as ZIMRA and NASA, and for those other two providers, they also kept some accounting records,” she said.
The census also revealed that the majority of micro-establishments were operating informally, with only 18.9% of the 180,073 micro-establishments operating formally. In contrast, all 2,031 large establishments identified were formal.
Phiri highlighted that the census found that 89.4 percent of the establishments were operating as sole proprietors, while 7.1 percent were operating as private limited companies. The capacity utilization of establishments was also analyzed, with the mining and quarrying sector ranging from 44.7 percent to 68.1 percent, and the manufacturing sector ranging from 40.9 percent to 51.9 percent.
Phiri noted that capacity utilization varied by establishment size, with micro-establishments in the mining and quarrying sector having a capacity utilization of 45.5 percent, while medium establishments had a capacity utilization of 68.1 percent.
The census also found that 87 percent of the establishments were located in urban areas, while 13 percent were located in rural areas. The registration status of establishments was also analyzed, with less than 20 percent of establishments in the mining sector registered with the Registrar of Companies.
The findings of the economic census provide valuable insights into the structure and size of Zimbabwe’s economy, highlighting the need for policies that support the growth of small and medium-sized enterprises and promote formalization of businesses.
New Ziana
