Minister Ncube highlights role of MSMEs in economic growth

MIDLANDS Provincial Affairs and Devolution, Minister Owen Ncube has said micro, small and medium enterprises (MSMEs) play a vital role in advancing decent work and driving economic growth in the country.

Speaking during the ZB Midlands’ MSMEs Expo sponsored by ZB Financial Holdings last week, Minister Ncube said MSMEs are the backbone of the economy as they drive innovation and economic growth.

“We acknowledge the vital role MSMEs play in our province. MSMEs are the backbone of our economy, driving innovation, job creation and economic development,” said Minister Ncube in a speech read on his behalf by Midlands’ director of economic affairs Mr Kosheni Mutisi.

The expo was held under the theme; “Accelerating SMEs growth through financial partnerships.”
The event featured exhibitions and displays by MSMEs, showcasing their potential to grow and become large corporations.

Minister Ncube said MSMEs often face challenges in accessing finance, which hinders their growth potential.

“It is important to note that traditionally, a majority of MSMEs shy away from engaging with financial institutions. This is where financial partnerships come in to bridge the gap and empower MSMEs to thrive,” he said.

“In this regard, we applaud the efforts by ZB Financial Holdings in opening up to the MSMEs sector and bringing them together at such events.”

Minister Ncube said the Second Republic led by President Mnangagwa is committed to the development of the MSMEs sector for the attainment of Vision 2030.

As a result, he said the Government has introduced a raft of measures in an endeavour to create an enabling business environment for MSMEs to thrive.

“The province continues to witness the construction and provision of appropriate workspaces in all the 14 local authorities to industrialise and modernise in line with Vision 2030 of an empowered and prosperous upper middle-income society and ensuring that no one and no place is left behind,” said Minister Ncube.

He said the Government has introduced the Zimbabwe Gold (ZiG), which aims to support MSMEs and promote economic stability.

“The currency reforms will bring about increased access to credit for MSMEs as lenders become more willing to provide loans in a stable currency. Embracing the new currency will help facilitate transactions and enhance financial inclusion by providing a secure and reliable means of payment for MSMEs especially in rural areas. This will ultimately stimulate economic growth,” said Minister Ncube.

He said ZB’s commitment to supporting Government efforts to promote the development of the MSME sector is commendable.

Minister Ncube said the exhibitions and displays by the MSMEs showed the immense potential to grow.

“This is testimony of innovation, quality and competitiveness. With the right support, resources and policies, MSMEs can overcome challenges and achieve significant growth to become large corporates,” he said.

Minister Ncube urged MSME entrepreneurs in the Midlands Province and participants at the event to seize the opportunities presented by financial partnerships, harness the power of technology and remain agile in today’s rapidly changing business landscape.

“Additionally, I urge financial institutions such as ZB Financial Holdings and others to persist in innovating and delivering financial solutions that meet the distinct requirements of MSMEs, thereby fostering their growth and success,” he said.

Minister Ncube said MSMEs should formalise their operations so that they have access to formal credit channels and reduce reliance on informal lenders.

He said Government recognition enables MSMEs to obtain necessary licences and registration, making them eligible for Government schemes and incentives.

“By formalising operations, MSMEs will see improved management as formalisation encourages better record-keeping, accounting and management practices. MSMEs can participate in Government procurement and explore export opportunities,” said Minister Ncube.

“This is important, given the coming in of the Africa Continental Free Trade Area (AfCFTA).”
Minister Ncube said the corporate sector is an important stakeholder not only for MSME development but also for the economy.

“I encourage MSMEs in the province to take advantage and intensify such collaborative efforts including innovation hubs at institutions of higher and tertiary education to drive provincial economic growth, create jobs and solve societal challenges,” he said.

“To the MSMEs, I commend you for your resilience in overcoming the various challenges you face in your business. I assure you that as a Government, we recognise these challenges and are committed to creating a conducive environment for your businesses to prosper.”-chronicle