SMEs backbone of Zim economy – gvt

Government has said lack of financial inclusion of micro, small and medium enterprises (MSMEs) hinders their economic growth despite the sector being the backbone of the country’s economy.

 

Speaking at a recent ZB Financial Holdings Midlands MSMEs Expo in Gweru, Provincial Affairs and Devolution minister Owen Ncube said lack of financial engagement on the part of small-to-medium entrepreneurs hindered their growth, calling on the sector to be proactive in seeking financial partnerships.

 

“It is important to note that traditionally, a majority of MSMEs shy away from engaging with financial institutions.

 

“This is where financial partnerships come in to bridge the gap and empower MSMEs to thrive,” he said.

 

“In this regard, we applaud the efforts by ZB Financial Holdings in opening up to the MSMEs sector and bringing them together at such events.”

 

Ncube said government acknowledged the role played by the sector in the province.

 

“MSMEs are the backbone of our economy, driving innovation, job creation and economic development.

 

“The province continues to witness the construction and provision of appropriate workspaces in all the 14 local authorities to industrialise and modernise in line with Vision 2030 of an empowered and prosperous upper-middle-income society,” he said.

 

Ncube called on the MSMEs in the province to utilise opportunities presented by financial partnerships and make use of technology to remain viable in the rapidly changing business landscape.

 

“I urge financial institutions such as ZB Financial Holdings and others to persist in innovating and delivering financial solutions that meet the distinct requirements of MSMEs thereby fostering their economic growth and success,” he said.

 

The event, held under the theme: Accelerating SMEs Growth through Financial Partnerships, saw entrepreneurs featuring exhibitions and displays to showcase their potential to become big corporations.

Newsday