Zimbabwe and World Bank partner to formalise SMEs

Nov 27, 2014

The Zimbabwean government has revealed it is working with the World Bank to formalise the small and medium-sized enterprises (SMEs) sector.

The Zimbabwean government has revealed it is working with the World Bank to formalise the small and medium-sized
enterprises (SMEs) sector.

"It is high time we encourage honest business among our
SMEs
but that will be achievable through building confidence in the system,” said Small to Medium Enterprises Minister
Sithembiso
Nyoni
on Monday (November
24th).

She unveiled figures showing the small to medium sector is largely informal with 85 per cent of unlicensed operators. This, she said, had led to the lack of financial support from government institutions and banks, The Herald reports.

Ms
Nyoni
noted that the
SMEs
Act Chapter 24:12 stipulates that a quarter of registered entities should be promoted through getting tenders as well as financial support.

According to the 2012
Finscope
Survey, Zimbabwean
SMEs
contribute over 60 per cent to GDP and employ over 5.8 million people out of a population of 13.5 million inhabitants.ADNFCR-2976-ID-801762671-ADNFCR