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Minister Nyoni

Tinashe Nhari Business Reporter
Government and the World Bank are close to finalising the approach which will be used in formalising the small enterprises sector, Small to Medium Enterprises and Co-operative Development Minister Sithembiso Nyoni said yesterday. Minister Nyoni said the small to medium sector is largely informal with 85 percent being unlicensed operators. This, she said, had led to the lack of financial support from Government institutions and banks.

She said the drive for formalisation is best timed as it is in line with Zim-Asset which aims to improve the business environment.

Minister Nyoni said this while addressing the second steering committee workshop attended by NSSA, World Bank, Zimra, Silveria House, SNV and CORE Foundation together with local authorities who were deliberating on how to formalise the sector.

“It is high time we encourage honest business among our SMEs but that will be achievable through building confidence in the system,” said Minister Nyoni.

She said that the SMEs Act Chapter 24:12 stipulates that a quarter of registered entities should be promoted through getting tenders as well as financial support.

“It is from this workshop that we need to come up with solid steps and commitment to facilitate the smooth transition from the informal to the formal sector,” she said.

CORE Foundation director Mr Alvin Nyoni at the same event said different stakeholders should come together and work towards finding sustainable ways and strategies to push forward the agenda for formalisation of the sector.

“There’s still huge potential to develop and to grow the SMEs sector to become formal, the 2,8 million SMEs have created 5,7 million jobs which means it’s still a market that needs to be tapped into,” he said.