SMEs formalisation drive gains momentum
SCORES of micro-small to medium enterprises (MSMES) continue to graduate into big businesses across the country as they embrace the formalisation drive in response to improved Government support.
In line with the Second Republic’s inclusive economic development thrust, unlocking the potential of MSMEs is critical to building a solid economic base, leading to the attainment of an upper-middle-income society by 2023.
On Tuesday, Cabinet received and considered a report on the MSMES Graduation Programme, which was presented by the Minister of Women Affairs, Community, Small and Medium Enterprises Development, Dr Sithembiso Nyoni.
In a post-Cabinet media briefing, Acting Minister of Information, Publicity, and Broadcasting Services, Dr Jenfan Muswere, said Dr Nyoni highlighted that the graduation programme has been initiated across the country’s 10 provinces in order to encourage formalisation within the SMES sector and honouring enterprises that have grown from one level to another, including those that have graduated to large-scale enterprises category.
Dr Jenfan Muswere
“To date a total of 391 micro, small and medium enterprises (MSMEs) have so far graduated in Harare, Midlands, and Manicaland provinces. The sectors include furniture, chemicals and detergents, clothing, services, manufacturing, agro-processing, leather industry, construction, retail, tourism, arts and culture, agriculture, and metal fabrication,” said Dr Muswere.
The Midlands MSME Graduation Ceremony was held in December 2022 and was officiated by President Mnangagwa with a total of 112 enterprises graduating from one level to another.
A total of 71 enterprises graduated from micro to small, 26 from small to medium, and 15 from medium to large enterprises.
“These enterprises had a total annual turnover of US$43 million and were providing employment to a total of 3 063 people,” said Dr Muswere.
“The Harare Metropolitan Province saw 166 MSMEs graduating in March 2023. A total of 122 MSMEs graduated from micro to small, 38 from small to medium, and six from medium to large enterprises.
“The enterprises had a total annual turnover of over US$35 million and were providing employment to 2 040 people. A total of 17 MSMEs were awarded special awards for exceptional performance.”
Dr Muswere said in Manicaland province a total of 113 MSMEs have graduated with 89 from micro to small, 17 from small to medium, and seven from medium to large-scale enterprises.
The enterprises were in sectors that include animal husbandry, fisheries, metal fabrication, tourism and hospitality, dairy, and timber processing among others, he added.
“The enterprises had a total annual turnover of US$42 million and provided employment to 2 052 people,” said the minister.
“The major outcomes of the graduation programme include the following: recognition of the role and contribution of MSMEs in the growth of the economy; improved access to markets by MSMEs, and increased MSMEs contribution to fiscal revenue as more enterprises are coming forward to pay taxes.
“Thus, the Government will continue to support the programme in order to accelerate the movement of more micro enterprises from informal to formal and enhance productivity and competitiveness in the sector as we demonstrate that ‘nyika inovakwa nevene vayo/ilizwe lakhiwa ngabaninilo’.-chronicle
