The ManicaPost
Paidamoyo Mutsvairo
OLD Mutual should be commended for its efforts in promoting businesses of Small to Medium Enterprises through its ongoing construction of a state-of-the-art SME centre in Harare.
It is pleasing to note that construction of the SME centre has come at a time when the nation is reviving and expanding its economy. Old Mutual is involved in a number of projects, which among them includes property fund management, property services and property development.
SMEs are engaged in different trades which include carpentry, dress making, cobblers and barbershops.
These have been facing challenges in their day to day running of business. Most informal businesspeople have been encountering difficulties in finding appropriate work places to operate from, hence risk being arrested by Municipal Police or have their wares confiscated. Such interruptions have been hampering the growth of SMEs.
Most countries with big and flourishing economies today came a long way and their economic histories have roots in SMEs. For instance, China started from the grassroots and rose until it reached where it is today through SMEs. In 1978, China began its economic reforms and most corporate giants assisted in the growth of its SMEs. Since then, the Chinese economy has been growing at a rate of more than nine per annum.
Hence, SMEs contributed immensely to economic growth of China and the same can also happen in Zimbabwe.
While officiating the ground breaking ceremony for the Eastgate SME Centre in Harare last month, Minister of Small and Medium Enterprises and Co-operative Development, Cde Sithembiso Nyoni commended Old Mutual for their pragmatic approach in addressing the challenges being faced by SMEs.
Some of the initiatives that Old Mutual is embarking on include SME banking. Under this project, a fund was set up by CABS bank to cater for the financial needs of the SME sector. Most SMEs have been operating in isolation of banks. However, it is pleasing to note that SME banking facility from CABS will allow SMEs to access capital loans, overdrafts, credit letters and short term loans.
These financial services are necessary for every individual in the business sector. In order to create a good rapport with the bank, SMEs should be encouraged to bank their proceeds to CABS bank so that they will also be able to access the financial services offered by that bank. Such a positive move by Old Mutual should be applauded as it ensures easy way of doing business in the SME sector.
It is also heartening that Old Mutual is discovering various financial avenues in which SMEs can be included.
In her speech, Minister Nyoni insinuated that, a survey that was done by Finscope SME Survey 2012 revealed that the greater part of SMEs which constitutes about 86 percent; do not use any bank service. Therefore, Old Mutual Group was establishing a Financial Inclusion Department that caters for excluded groups which includes SMEs. Such a positive development is welcome as it encourages and boosts confidence of SMEs who, of late, have been facing financial challenges to manage their businesses.
To add on, Old Mutual Group has also initiated that SMEs and ordinary Zimbabweans should be financially educated on the ability to use, grow and protect money. Most people, especially those in the business fraternity have a propensity of over spending their financial proceeds instead of growing and harvest on it. In that vein, Old Mutual introduced ‘On The Money’, a financial literacy programme which seeks to assist both business people and ordinary citizens on how best to manage their finances.
Also, Old Mutual is setting up technology centres across the country. Nowadays people worldwide are living in a global village, meaning everyone needs to be connected to internet so as to access information from every part of the world.
If they become connected to internet, SMEs can also do their researches on how SMEs in other countries are operating so that they can improve on their service delivery.
It is also convincing that the Ministry of Small and Medium Enterprises and Cooperative Development is also engaged in various strategies that assist SMEs in improving the quality of their service delivery. Some of the strategies being implemented include training on business and technical skills, access to market and finances through Small and Medium Enterprises Development Corporation (SMEDCO).
Currently, local SMEs constitute about 60 percent of the country’s workforce and contribute about 50 percent of the country’s Gross Domestic Product (GDP). Such figures depict the significance of the role being played by SMEs in the country.
