Harare, (New Ziana) – The Small and Medium Enterprises Development Corporation (SMEDCO) has been commended for its resilience and innovation in the face of economic challenges characterised by currency volatility and the effects of climate change.
Addressing delegates at the SMEDCO Annual General Meeting (AGM) in Harare on Thursday, the Minister of Women Affairs, Community, Small and Medium Enterprises Development Monica Mutsvangwa said the 2024 annual report and audited financial statements were an indication of transformation.
During the period under review, SMEDCO disbursed US$1.1 million and ZiG2 million in local currency loans, sustaining over 1 134 jobs and creating 92 new ones, and to reinforce its commitment to inclusive growth, she trained over 3 000 micro, small and medium enterprises, (MSMEs), 62 percent of whom were women.
“This SMEDCO AGM is not just a statutory requirement. It reflects the corporation’s commitment to transparency, accountability, and its pivotal role in driving inclusive economic growth through enhancing access to finance and decent workspace for small and medium enterprises. Some of the achievements I noted include the surge in total income by 2 600 percent, from ZiG8.92 million in 2023 to ZiG243.79 million in 2024,” said Mutsvangwa.
“Net profit rose to ZiG70.13 million, compared to ZWG2.61 million in the previous year. Total assets increased by 1,800 percent, reaching ZWG304.4 million. SMEDCO also successfully raised the first tranche of US$1 million for lending activities and empowered women-owned businesses, who received 53 percent of all loan disbursements,” she aded.
Mutsvangwa added that the achievements were aligned with the vision for the country to become an upper middle income society by 2030 and the National Development Strategy 1 (NDS1), laying a strong foundation for NDS2.
She challenged the SMEDCO board and management to mobilise resources as well as formulate, establish, and implement schemes that can unlock the manufacturing capabilities and competitiveness of MSMEs in both local and international markets.
“As we transition from NDS1 to NDS2, the Ministry has a huge role play in facilitating the growth of manufacturing MSMEs through the provision of comprehensive business development support services. SMEDCO should therefore urgently establish an MSME Equipment Support Scheme to facilitate the provision of modern production equipment to growth-oriented manufacturing MSMEs in all the provinces,” she said.
Mutsvangwa urged the SMEDCO to also double its efforts towards providing business management training, mentorship opportunities, and business advisory services to develop essential skills in areas like financial literacy, record keeping, marketing, and strategic planning.
“We must implement mentorship programs that encourage platforms for knowledge sharing, peer-to-peer learning, and collaboration between established businesses and aspiring entrepreneurs,” she said.
She added that as Zimbabwe makes strides with initiatives to leverage market opportunities that the African Continental Free Trade Area (AfCFTA) presents, SMEDCO should develop export-oriented financing schemes for MSMEs in the export value chain.
With Zimbabwe’s Gross Domestic Product (GDP) growth projected at 5.0 percent and continued macroeconomic stability, Mutsvangwa said SMEDCO’s plans to list a corporate bond will further strengthen the corporation’s capacity to support MSMEs.
Speaking at the same occasion, SMEDCO board chairperson Charity Kadungure said they uphold the highest standards of corporate governance and maintain full compliance with statutory obligations.
New Ziana
