SMEs contribute US$8,6 billion to GDP

Tapiwa Chawagarira

CHIREDZI – SMALL and Medium Enterprises (SMEs) are the major drivers of economic development contributing close to US$9 billion to the country’s Gross Domestic Product (GDP) and employing close to 5 million people.

SME firms with less than 200 employees produce about a fifth of national income and employ one in four of the total workforce.

The chamber of SMEs held a three-day conference at Clevers Hotel in Chiredzi and drafted a national plan on how to achieve formalisation of 5 million SMEs by 2030. SMEs contribute more than US$8,6 billion to the gross domestic product and employ 4,8 million people full-time.

Minister for Masvingo Provincial Affairs and Devolution, Ezra Chadzamira, in his remarks, said there was converging evidence that highlights enormous contributions of MSMEs to job creation, income generation, trade and inclusive growth.

“The 2030 Agenda for Sustainable Development and the Addis Ababa Action Agenda recognises the important role of MSMEs. The National Development Strategy1 (NDS1) has prioritised development of SMEs across key productive sectors such as mining, tourism, manufacturing and agriculture as a strategy to achieve rural industrialisation,” he said.

“MSMEs can contribute to nearly all NDS1 priority areas in one way or another, especially in addressing challenges on poverty, hunger, health, education, empowerment of women, reducing inequalities, sustainable consumption, institution-building and partnerships as they are key allies in implementing the 2030 agenda and achieving vision 2030 of an empowered upper middle-income society by 2030,” said Chadzamira.

In an interview on the sidelines of the conference, the National Secretary General of the Zimbabwe Chamber of SMEs, Venacio Kurauone, said the conference’s thrust was to deliberate on how to come up with the national plan draft for the entire SMEs by 2030.

“MSMEs are contributing to the attainment of Vision 2030 that envisions the creation of an upper middle income society in the country and the Government is alive to the important role played by the sector to speedily achieve the dream,” he said.

“The National Draft will go a long way in shaping the future of SMEs as well as guidelines. The Chamber has embraced the Ministry’s advice to have a comprehensive database of its members to aid in planning and service delivery and that we have achieved by launching an electronic database platform.”