‘Venture into exports to boost economic revival’
WOMEN Affairs, Community and Small to Medium Enterprises Development Minister, Dr Sithembiso Nyoni, has called on budding entrepreneurs to embrace digital marketing platforms and venture into exports to help boost economic revival. Digital platforms continue dominating marketing spaces in the wake of Covid-19, which crippled many businesses that were dependent on physical buying and selling, she said.
SMEs have become the foundation of economic growth in Zimbabwe and are estimated to be contributing more than 76 percent of total employment and 60 percent to the Gross Domestic Product (GDP), according to official estimates.
However, despite the important role SMEs play in the economy, the sector is still constrained by challenges in accessing finance, workspace, markets, technology, business know-how and multiple levies.
These have been worsened by the effects of Covid-19, which have restricted normal business activities in order to reduce transmission of the disease in the workplaces. As a result, exports from this sector are still below potential.
Speaking during the Zimbabwe International Trade Fair (ZITF) SMEs Workshop in Bulawayo yesterday, Dr Nyoni said digital marketing has become an important strategy to promote the development and growth of SMEs. In a speech read on her behalf by Deputy Minister, Jennifer Mhlanga, Dr Nyoni said digital platforms were cost-effective as they offer the ability of reaching more customers for less money than traditional marketing methods.
“Government recognises the critical role played by SMEs in addressing the issues of poverty reduction, job creation and income generation. Achieving global competitiveness by SMEs is attainable if enterprises support architecture that is well structured,” said Dr Nyoni.
“Studies have shown that while SMEs and co-operatives account for well over half of industrial production even in developing countries, including our beautiful motherland Zimbabwe, their share of exports is generally much lower.”
She said Zimbabwe has abundant natural resources being exported in their unprocessed form. The minister said SMEs should, therefore, embrace value addition and beneficiation and export value added products to earn more foreign currency for the country.
“I am glad that today we have ZimTrade among us, our export development and promotion agency, which is totally committed to promoting Zimbabwe as a reliable and competitive source for manufactured goods, horticultural products and value-added services,” she said.
“I would like to urge you to start strategising on how you can exploit these opportunities for the growth of your businesses. Let us continue to engage ZimTrade for assistance in our business endeavours.”
ZimTrade operations director, Mr Similo Nkala, said SMEs should consider forming consortiums to help them meet export demand. He noted that despite Covid-19 the country had performed well in terms of exports. “We are ready to assist SMEs venture into exports and it is good to note that we have continued to do well despite Covid-19,”
said Mr Nkala.
“We have a whole range of markets in need of exports and SMEs can consult on how they can tap into this opportunity.”
Mr Nkala said sweet potatoes, avocados, nuts, and moringa were some of the organic products with high demand that SMEs can venture into.
“To assist Zimbabwean exporters get detailed information on emerging market(s) and other market(s) of your interest. ZimTrade offers a multi-level market research service on selected markets, to help Zimbabwean exporters and potential exporters, including SMEs to better prepare their market entry strategy,” he added.
In her digital marketing platforms presentation, Mrs Izithembisozenkosi Ndlovu, from the National University of Science and Technology (Nust) said any serious businessperson should be able to take advantage of the marketing space provided by social media.
She said SMEs can always ride on the social media market, which has more than 4,2 billion users.
“We live in a digital world and SMEs can take advantage of sponsored advertising, which is available and get more buyers for their products. Most people are usually online hence those SMEs with online visibility, catalogue and marketing strategies are set to sell more compared to those who rely on the traditional methods,” said Mrs Ndlovu. — The Chronicle
