Sadc SMEs strategy a key driver of development, growth

Judith Phiri, [email protected]

Small and medium enterprises (SMEs) have hailed the Southern African Development Community (SADC) SMEs Development and Competitiveness Strategy policy tool for their growth and development.

The strategy focuses on increasing their survival rate through capacity-building programmes, access to information, financing, a favourable fiscal policy environment and assistance in accessing modern technology.

It also aims to harness opportunities arising from the African Continental Free Trade Area (AfCFTA) and fully integrate them into the regional and global value chains.

SMEs in Zimbabwe are the backbone of the economy, comprising roughly 76 to 85 percent of all businesses, contributing about 60 percent to the national gross domestic product (GDP), and employing millions.

The sector is predominantly driven by individual entrepreneurs (over 70 percent), with a heavy concentration in agriculture, trade and retail.

In an interview, Bulawayo Chamber of SMEs vice-chairperson, Ms Sithabile Bhebhe, said micro, small and medium enterprises (MSMEs) play a crucial role in the country.

“In Zimbabwe and other SADC member states, MSMEs play a vital role in driving innovation, employment creation and fostering community development for economic growth and poverty reduction.

“Empowerment programmes for MSMEs are vital for survival and growth. These initiatives do not just change individual businesses, but they also uplift entire communities,” she said.

Ms Bhebhe said the SADC SMEs Development and Competitiveness Strategy should support SMEs who constitute the overwhelming majority of businesses across the region.

She said SMEs were not only engines of economic growth, but also critical pathways for entrepreneurship and inclusive development.

According to the SADC SMEs Development and Competitiveness Strategy, export opportunities in the SADC region, for Zimbabwe, include agricultural products.

“Zimbabwe’s agricultural sector produces various exports, including tobacco, maize, cotton, sugarcane and coffee. On minerals and mining products, SMEs play a role in mining and exporting minerals like gold, platinum, diamonds, chrome and coal.

“SMEs also produce and export processed food items such as canned fruits, fruit juices, and preserved meats. Zimbabwe is known for its high-quality tobacco and SMEs participate in tobacco farming, processing and export,” read part of the strategy.

In terms of gemstones, Zimbabwe produces emeralds and amethysts, with SMEs involved in the mining and exporting of these precious stones.

On the arts and crafts side, the strategy says local artisans create traditional crafts, sculptures, textiles, beadwork and pottery, which are exported as cultural and decorative items, while on furniture, Zimbabwean SMEs export wooden furniture and related products to regional and international markets.

“On tourism services, Zimbabwe’s natural attractions offer opportunities for SMEs engaged in tour operations, accommodations and safari services. In horticultural products, SMEs export a variety of fruits and vegetables, including citrus fruits, avocados and tomatoes,” added the strategy.

“On mineral processing, some SMEs are involved in value-addition activities related to minerals, including the processing and exporting of semi-processed or finished products.

“While on renewable energy solutions, SMEs provide renewable energy solutions like solar panels, wind turbines and related services.”

The SMEs also produce and export jewellery items, including traditional and contemporary designs and in terms of healthcare and pharmaceutical products, they provide healthcare services and export medical equipment, pharmaceuticals and related products.

The strategy says in education and training services, Zimbabwean SMEs offer vocational training, skills development and educational materials to neighbouring countries and regions.

The SMEs also provide information and communications technology (ICT) and software services, IT consulting and technology solutions for export to regional and international clients.

Ms Mandisa Moyo said that as an SME in the arts and crafts sector, ZimTrade initiatives were assisting small and medium companies to penetrate the export market.

“Establishment of clusters has helped women art and craft product makers, most of whom are SMEs, to produce and sell their products outside the country, which has improved their livelihoods,” she said.