SME Stock Exchange to launch next month

Zimbabwe will next month launch the Zimbabwe Small Enterprises Stock Exchange, a new capital market aimed at helping micro, small and medium enterprises (MSMEs) raise funding and accelerate business growth.

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube announced the initiative on Thursday while addressing the National Micro, Small and Medium Enterprises and Cooperatives Indaba in Harare.

He said the exchange forms part of government's broader strategy to strengthen the SME sector, which has emerged as one of the country's biggest contributors to economic activity and employment.

"Next month, we will be launching the Zimbabwe Small Enterprises Stock Exchange to help fund and raise capital for the SMEs sector," Prof Ncube said.

Limited access to affordable financing has long been one of the biggest obstacles facing Zimbabwean small businesses, many of which struggle to secure loans to expand operations, purchase equipment or enter new markets.

Prof Ncube said government was implementing several reforms to create a more supportive business environment, including reviewing licensing requirements and introducing tax waivers and rebates.

"Measures such as reviewing licences, tax waivers and rebates are designed to protect and grow this sector," he said.

He added that currency stability and economic growth of more than eight percent last year had also helped drive expansion within the SME sector.

Women Affairs, Community, Small and Medium Enterprises Development Minister Senator Monica Mutsvangwa said MSMEs remain central to Zimbabwe's economic transformation through job creation, income generation and production.

"The backbone of economic transformation cannot be complete without SMEs," she said.

She noted that SMEs and cooperatives contribute more than 60 percent of Zimbabwe's Gross Domestic Product, with small-scale farmers accounting for the majority of agricultural production while small-scale miners continue to make significant contributions to mineral output.

Minister Mutsvangwa said government had expanded institutional support for entrepreneurs by deploying business and cooperative development officers across districts to strengthen entrepreneurship and improve enterprise performance.

The officers, she said, receive continuous training in business development, entrepreneurship and digital skills to help small businesses adopt e-commerce, mobile banking and other modern technologies.

Through the ministry's decentralised programmes, millions of entrepreneurs have also benefited from initiatives designed to improve access to finance, markets, business development services, workspace infrastructure and technology.

Speaking at the same event, India's Joint Secretary in the Ministry of Micro, Small and Medium Enterprises, Ms Mercy Epao, shared lessons from India's SME sector, which has become one of the country's strongest economic pillars.

She encouraged Zimbabwe to continue strengthening institutional support for entrepreneurs and said many of India's largest corporations started as small businesses before growing into global companies.

Ms Epao also highlighted India's policy of mandatory procurement from MSMEs, saying guaranteed market access had enabled many small businesses to expand more rapidly.

She further urged Zimbabwe to formalise traditional craftsmen to increase their contribution to the national economy.

Zimbabwe Chamber of SMEs secretary-general Venancio Kurauone welcomed government's support for the sector, saying regulatory reforms were encouraging businesses to transition from the informal economy.

"We are not just a sector but the engine of the economy and a significant contributor to Vision 2030," he said.

"We are now moving from informality to a place where we are fully regularised and contributing to the fiscus."

Zimbabwe Cooperative Federation president Mike Duru said cooperatives would continue supporting government's development agenda.

"We have huge membership of over 10,000 companies and more than three million people in the sector, showing the impact that we have on the economy," he said.

The planned launch of the Zimbabwe Small Enterprises Stock Exchange is expected to provide SMEs with an alternative source of long-term capital while supporting the formalisation and expansion of businesses regarded as the backbone of the country's economy.