THE Minister of Women Affairs, Community, Small and Medium Enterprises Development, Monica Mutsvangwa, has said micro, small and medium enterprises (MSMEs) are the entry point to rural industrialisation.
MSMEs are the backbone of Zimbabwe’s economy, with approximately 3,4 million entities contributing over 60 percent of the country’s gross domestic product (GDP) and employing roughly 4,8 million people full-time.Zimbabwe Business Directory
Speaking at the Rural Industrialisation and Economic Empowerment Indaba 2026 in Bulawayo on Monday, the Minister said MSMEs play a key role in the economic development of the country.
“They are the first layer of production, the first layer of local value addition and the first layer of community participation in industrial growth. If we are to build a truly inclusive industrial economy, then we must deliberately place SMEs at the centre of that journey,” she said.
“They are the bridge between local resources and national production, between raw materials and finished goods, and between community livelihoods and sustainable economic transformation.”
She said MSMEs contribute over 67 percent to Zimbabwe’s GDP and account for more than 70 percent of employment in the economy across all sectors, making them not only the backbone of livelihoods.Zimbabwe Business Directory
Minister Mutsvangwa said at the same time, rural industrialisation does not exclude large industry as big industries can anchor and strengthen the SMEs around them.
“Large-scale investors create opportunities for supply chains, subcontracting, skills transfer, and market access.
“What is needed is a deliberate linkages model that connects the big producers to the SMEs, so that industrial growth does not remain concentrated in a few places, but spreads across the country and reaches our rural communities,” she added.
“In this regard, one of the most practical strategies is for big companies to contract out some of their specialised work to SMEs in rural areas. There are many jobs in manufacturing, fabrication, assembly, packaging, logistics, maintenance and component production that can be outsourced to trained and competent SMEs.”
She said this approach not only expands production capacity, but also helps to build local enterprise, deepen participation and spread the benefits of industrialisation far beyond the main factory floor.
The minister said it was in this way that rural communities become active participants in industry, not passive observers; however, for this model to work effectively, the SMEs must be capacitated.
“We must invest in training, mentorship, equipment, and quality assurance so that they can meet the standards required by industry. It is not enough to create opportunities; we must also prepare our SMEs to take advantage of those opportunities,” she said.
“This is why certification by the Standards Association of Zimbabwe (SAZ) is so important.Zimbabwe Business Directory
“Once our small businesses are trained and certified, they become credible suppliers, trusted service providers, and competitive partners in the national economy.”
She said standards give SMEs the confidence to grow and they assure the industry that local producers can deliver quality and consistency.
Minister Mutsvangwa said this approach becomes even more relevant when they look at the steel value chain.
“The developments around Manhize have shown us the power of a large industrial project to stimulate broader economic activity. Steel is not just a product; it is an ecosystem.
“Around steel, we can grow fabrication, engineering services, construction inputs, transport services, toolmaking, metal works and a wide range of SME-led enterprises. Rural and peri-urban businesses can supply components, provide support services, and participate in downstream production,” she said.
“In that way, the steel value chain becomes a powerful engine for SME development and rural industrialisation. The same principle applies to the timber and furniture value chain, especially in provinces such as Manicaland and Matabeleland North, where we have plantations and abundant forestry resources.”
She said areas such as Chimanimani, Nyanga and Lupane have great potential for saw-milling, wood processing and furniture manufacturing.
The minister said instead of exporting raw timber or leaving value untapped, they must support local enterprises to process wood into doors, tables, chairs, cabinets, and other finished products.
“This is how rural areas can move from resource endowment to industrial production. It is also how we create jobs, preserve local value, and build stronger rural economies.
“In the agricultural sector, the opportunities are equally significant. Agriculture remains one of the strongest foundations for rural industrialisation because it touches the lives of so many households and provides the raw materials for processing, packaging, and distribution,” she added.
“We must, therefore, continue to promote agro-processing facilities that transform local produce into market-ready goods, enabling value addition at source. In doing so, SMEs empower rural communities to participate meaningfully in national development, fostering balanced, inclusive, and spatially equitable growth across all provinces.”
The Indaba was hosted by the Ministry of Industry and Commerce in collaboration with other Government partners.
Running under the theme: “From Policy to Production: Leveraging Economic Empowerment for Accelerated Rural Industrialisation, the event was held on the sidelines of the 66th edition of the Zimbabwe International Trade Fair (ZITF) ZITF 2026, which kicked off yesterday.-herald
