BY TAFADZWA MHLANGA
The government has urged local authorities to provide decent working spaces for small and medium enterprises (SMEs) because they contribute significantly to their revenues.
Women’s Affairs, Community, Small and Medium Enterprises Development minister, Sithembiso Nyoni said councils had a responsibility to plough back taxes they get from SMEs into improving their operating environment.
“The responsibility of providing spaces for business, residents including SMEs lies with the local authorities,” Nyoni told the House of Assembly last week.
“So, the local authorities have a responsibility to provide work spaces for SMEs because they collect revenue.
“We want to encourage local authorities to take work space for SMEs as part of their planning so that SMEs should be part of the planning strategy because they are the goose that lays the golden eggs.”
She said local authorities must work with central government in improving the working environment for SMES.
“If they cannot (raise the money), let us then find the private sector or the Ministry of Finance and Economic Development which now has a budget for them to provide land for us to build for the SMES,” Nyoni added.
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Councils such as Bulawayo and Harare constantly clash with vendors operating from their central business districts.
Several vendors have also been arrested in both cities for allegedly operating illegally.
Informal business operators say they do not have enough working spaces in urban areas for them to operate legally.
SME operations constitute 65% of Zimbabwe’s economic activities, with the majority of them operating illegally.
The government says it will capitalise various institutions, which support women, youth and the SMEs to facilitate access to markets, workspace, trade promotion and capacity building, among other things.
Some of the institutions that SMEs could benefit from, include the Community Development Fund, which was allocated $15 million in the 2020 budget.
Another one is the Small and Medium Enterprises Development Corporation with a budget allocation of $90 million and Empowerbank, which has $50 million.
Nyoni said the ministry will hold a workshop that will map plans to assist SMEs. The minister said SMEs played a significant role in the growth of cities.
“Let me hasten to say that at one point in our history some cities were relying solely on SMEs for revenue,” she said.
“For instance, there was a time when Bulawayo was getting 67% of its revenue from SMEs.
“That is why you see Bulawayo being so organised because they know which side their bread is buttered.
“If a lot of local authorities would do the same, these SMEs would operate better; our gross domestic product would rise and also our revenue base would rise,” she said.
SME Association of Zimbabwe founder Farai Mutambanengwe urged the government to provide land to informal businesses.
“What government should do is to avail land for proper infrastructure to be built and it should also make plans to refurbish the working places that are not properly structured like those in Mbare (Harare). Proper sanitation is also needed.”
