Zim orders that 25 percent of all State contracts be awarded to SMEs

The Zimbabwe government has ordered that 25% of all State contracts be awarded to small to medium-scale enterprises to promote the sector's growth.

This follows the government's recent gazetting into law of the Small Enterprises Development Corporation Amendment Act.

The move will see to it that government promotes the development of Micro-Small and Medium Enterprises (MSMEs) in the country by ensuring proper coordination and implementation of policies, legislation and programmes that have a direct impact on the development of small enterprises.

The passing of the Act paves way for the establishment of a Small and Medium Enterprise Advisory Council whose role would be to advise government, local authorities and other statutory bodies on issues relating to small enterprises.

The advisory council would be in a position to evaluate existing and proposed legislation on MSMEs and reports its findings to the minister.

Through the new law, a Micro-Small and Medium Enterprises Fund will be created to promote and facilitate the establishment and development of small enterprises.

The legislation seeks to facilitate access by MSMEs to capital and finance as well as advance bilateral, regional and international trade and investment prospects.

Last week the government admitted it was not doing enough to support small-to-medium scale enterprises despite their significant contribution to the gross domestic product.