Nyoni pushes for formalisation of SMEs
GOVERNMENT says it is working with the Standards Association of Zimbabwe (SAZ) to boost product certification by micro, small and medium enterprises (SMEs) in a bid to formalize the sector.
SMEs have become dominant economic players in Zimbabwe. A majority of them still operate informally. It is for this reason that it intensified the push for the formalisation of the sector.
SMALL-to-Medium Enterprises minister Sithembiso Nyoni told NewsDay that SAZ had reviewed its services for MSMEs to enable them to certify their products.
“The Ministry is also working with the Standards Association of Zimbabwe (SAZ) to enhance adoption of standards and product certification by MSMES. SAZ has created an MSME desk and has reviewed its services for MSMEs, a move that will encourage formalised MSMEs to certify their products in line with local standards,” she said.
In November 2021, government began consultations towards formulating a comprehensive SMEs formalisation strategy.
The Women Affairs, Community, Small and Medium Enterprises Development ministry is coordinating the strategy.
Zimbabwe’s informal sector has been expanding ahead of a formal sector that has been crippled by de-industrialisation.
The International Monetary Fund (IMF) estimates that about 60% of the economy is now controlled by the informal sector.
Billions in potential taxes are locked up in the informal sector, and authorities have been exploring ways of drafting these businesses into the formal sector.
Nyoni urged MSMEs to take advantage of the bilateral agreements that are there which allow the country’s products to have special treatment.
“The ministry assists MSMEs to take advantage of government’s bilateral agreements that allow Zimbabwean products to have preferential treatment in regional markets. MoUs have been signed with countries such as Zambia, Namibia and Tanzania to support MSMEs. Zimbabwe is signatory to the COMESA Treaty, SADC Trade Protocol and the Africa Continental Free Trade Area (AfCTA).
“These Agreements allow duty free access to products originating from Zimbabwe. For example, the COMESA Simplified Trade Regime – facilitates and formalises small scale cross traders through duty free trade in products on the agreed common product list between Zimbabwe and Malawi, Zimbabwe and Zambia without the need for certificates of origin,” Nyoni added.
In 2022, a total of 2 750 SMEs were facilitated to access markets and 1325 SMEs were linked in sectors such as manufacturing, agriculture, textile, and retail among others in the same year.-nwsday
