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Never Nyemudzo

Business Reporter
Indian businesses have proposed a small to medium enterprises exchange programme with Zimbabwean small businesses aimed at fostering strong relations between the two countries that will culminate in better future business transactions.

A delegation of five companies headed by I AM SME INDIA chairperson Rajiv Chawla is currently in the country scouting for possible joint ventures.

Making a presentation at the CBZ SME International Indaba in Bulawayo yesterday Mr Chawla emphasised the need to build strong business relations between the two countries.

“From my understanding, the two countries, Zimbabwe and India, have a common history and it is paramount that Zimbabwe emulate what India has done in engineering their economic growth.

“A lot of people have been asking about what India can do to improve the development of SMEs in Zimbabwe. For me that is not issue and we must start talking a bit more about what the two countries can do for each other to ensure an improvement in economic growth,” said Mr Chawla.

“There is no time to waste for Zimbabwe and I am glad that as a country you have already done some homework. The biggest advantage is you have as a country is that you already have a strong SME sector,” he said.

Mr Chawla said he will push for the signing of a Memorandum of Understanding that will culminate in the establishment of an entrepreneur exchange programme. He said this initiative will open opportunities for players in both countries to have a clear understanding of policy frameworks and operating environment.

“We want to introduce an entrepreneur exchange programme so that businesses will know the regulatory demands of each other’s countries. We wish to have an MOU and increase business understanding between the two countries,” said Mr Chawla.

He added that the Indian companies forming part of the delegation are in the country scouting for opportunities and possible joint ventures.

The SME International Indaba is being facilitated by CBZ Holdings, the Embassy of India and organisation I AM SME OF INDIA.

The Indaba is aimed at developing relations between Zimbabwean small businesses and India while also sharing experience and ideas.

CBZ Holdings chief executive Never Nyemudzo told delegates that the financial institution has been active in the development of small businesses for a long time now. He said CBZ has so far extended in excess of $150 million in loans towards the development of several small to medium enterprise projects since dollarisation.

The bank is, however, sitting at a loan book of about $36 million. Small to Medium Enterprises and Corporative Development Deputy Minister Novet Muponorwa who was standing in for Minister Sithembiso Nyoni applauded the coming in of the Indian business delegation.

He said the initiative for an Indaba provided an opportunity for dialogue between Indian and Zimbabwean business with a view of possible partnerships.

Deputy Minister Muponorwa added that banks have a key role to play in building sustainable and inclusive financial system that provides a broad range of products for all economic agents.

“I am urging banks to take time to thoroughly understand the nature and dynamics of the informal sector in terms of production, service offering as well as funding requirements. Financial institutions also need to partner with Government in mentoring MSME’s in good corporate governance, financial literacy among other initiatives so that they are able to diligently handle finances and run their businesses efficiently,” said Mr Muponorwa.

Indian Ambassador to Zimbabwe Rungsung Masakui said there is a huge opportunity for SME development in Zimbabwe and what is only needed are strong partnerships going forward.

“With the resources that this country has ranging from gold, platinum and diamond, can we not have some synergies here and grow up together in partnerships and mutually benefit from the relationships. Indian SMEs are here looking to strike joint ventures and partnerships. It is only through partnerships that we can achieve great things,” Ambassador Masakui.