Mini-factories model boon for industrial growth

Sikhulekelani Moyo
Bulawayo Bureau
SMALL to medium enterprises (SMEs) are expected to play a huge role in the resuscitation of Bulawayo industry following the official launch yesterday of the “Metro Mini-Factories” model, which seeks to integrate small businesses with giant corporates in expanding domestic market share and exporting.

This is the first pilot model in the country whose successful implementation should inspire replication of the same in other parts of the country.

The intervention is set to go a long way in enhancing the contribution of small businesses in the city towards promotion, preservation and sustainability of the economy, which will create more decent jobs.

In line with the National Development Strategy 1 (NDS1), the mini-factory model is also expected to largely facilitate the transitioning of the largest base of the city’s entrepreneurs operating informally to formality.

With the informal sector now employing about 76 percent of the country’s active population, according to the 2019 Labour Force Survey, this is critical for Bulawayo’s journey to regaining its manufacturing hub status, having suffered de-industrialisation in recent years, which left many people jobless.

Situated at the OK Mart Complex, the Metro Mini-Factories Centre accommodates close to 60 formalised small-scale manufacturing and service units, which have been provided with standard compartment working spaces with adequate lighting, power supply, ablution facilities, security and digital equipment like computers.

The facility was secured from Old Mutual on rental basis and had to be completely refurbished at a cost of US$165 000, involving different key players to ensure its condition suits modern industry specifications.

It now houses upcoming industrialists who are drawn from sectors such as clothing and textile, leather, retail, beauty and care, furniture, metal fabrication, printing and chemical engineering.

Yesterday’s launch was a culmination of multi-stakeholders effort involving the Government, International Labour organisation (ILO), Old Mutual, Chamber of SMEs, Bulawayo City Council, National University of Science and Technology, NSSA, Bulawayo SMEs Trust and Junior Achievers Zimbabwe.

In her keynote address, Deputy Minister of Women Affairs, Community, Small and Medium Enterprises Development Jennifer Mhlanga, said the facility will go a long way in boosting Bulawayo business operations and the city’s contribution to national economy.

“I am happy that the ministry, together with ILO and other stakeholders, have decided to honour and show the nation that we can complement each other for the development of decent workspaces for SMEs for the benefit of the country,” she said.

“This intervention demonstrates the importance of deploying integrated strategies for facilitating the transition from informality to formality.

“The importance of formalisation is critical for the development and growth of MSMEs, business support service providers and big corporate and finance institutions in order to build trust and good relationships, which are important attributes in catalysing the growth of SMEs business operations.”

Bulawayo Provincial Affairs and Devolution Minister Judith Ncube paid tribute to the stakeholders and stressed the need to invest more in capacity building of SMEs so as to unlock their full potential.

“This structure is of special significance as it is a testimony in transformation from informal to formal sector,” she said, adding that bridging the gap between the formal and informal sectors was critical towards realising an upper

middle-income economy vision by 2030.

ILO director for Zimbabwe and Namibia Ms Hopolang Phororo said their drive was to promote decent work space for SMEs as this provides jobs to the majority of people globally.

“We identified Bulawayo SMEs Centre and refurbished it to promote and capacitate SMEs. We celebrate the partnership because even an organisation as big as ILO cannot perform the formalisation of the informal sector alone,” she said.

In his remarks, Bulawayo Chamber of SMEs chairperson, Mr Coustin Ngwenya, expressed excitement over the new-look facility saying this will enhance their vision of becoming the “nerve centre for economic growth and empowerment” through the development of SMEs and cooperatives.

“From old-looking, plastic, sack, zinc sheets and old metal demarcations we now have the state of the art and technology working space. We now have enhanced individual and stock security,” he said.

Bulawayo Ward 6 councillor, Tawanda Ruzive, who represented Bulawayo Mayor, Clr Solomon Mguni, said the provision of modern working space was going to transform the SMEs sector and capacitate young businesses to grow their earnings.

Bulawayo Chamber of SMEs coordinator Mr Nketha Mangoye Dlamini said: “The model we have just witnessed here will be a hallmark for Bulawayo economic development.”

Government has already come up with several initiatives to promote formalisation including the reviewed MSMEs Policy (2020-2024), which is premised on 12 strategic pillars that seek to support SMEs growth.

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