Tackling challenges facing informal sector

24 Mar, 2017 - 00:03 0 Views
Tackling challenges facing informal sector Some informal producers at Sakubva Green Market are failing to expand

The ManicaPost

Business Zone with Nathaniel Mlambo
This week on the business zone, I will dwell on the discussion which my colleague Jabulani Mangezi had with traders mainly from flea markets basically on business growth.

The big question which came out of this radio edition is, why are informal traders not growing in terms of capacity?

The answer is not new and it’s something we all know about, lack of capital to finance the business projects in addition to lack of knowledge of how to expand their business.

However, in my view this is also tied to lack of innovation or creativity in trying new ways of selling and attracting customers.

In 2015, the Bankers Association of Zimbabwe BAZ and the Zimbabwe Economic Policy, Analysis and Research Unit completed a study on the informal sector and recommended that banks should support the informal sector given that 80 percent of the people are currently engaged in some informal activities.

Last year, the government realised that the informal and SME sector have great potential to boost the economy if given the necessary support.

The Movable Property Security Interests Bill, of 2016 was introduced and is currently in consultation stages with the portfolio committee gathering views of citizens.

This Bill seeks to provide for movable property to be used as security for the purpose of obtaining loans.

The committee this week visited Mutare on it’s tour of provinces. This is one Bill which should receive maximum support based on its intentions. We know many SMEs and informal business people have great potential to grow the local economy but lack the required collateral often demanded by banks before they can issue out a business loan. In simple terms people can get loans using their cars, cattle, fridges and other items opposed to immovable properties which many people don’t have or simply can’t afford to tie down for small amounts such as $5 000.

The second issue which the Bankers Association of Zimbabwe recommended was the issue of clusters and partnerships for the SMEs and informal business people.

This is already happening, we saw the birth of the Manicaland Chamber for SME’s in 2016, whose board is chaired Mr Moses Mwagura, which is championing the business needs of the informal sector.

Unfortunately our people haven’t learnt that unless you reach out to platforms you can’t market yourself and your business ideas. Many traders and artisans in the province are missing out on the benefits which are likely to unfold by being part of an organisation that works for their needs. The Chamber is actually a brain child of the Ministry of SMEs, which has asked SMEs to organise themselves for better engagement.

It is engaging and facilitating on behalf of its members, but you will still find some people who will continue to ignore these developments. Yes we can’t blame them some of it is embedded and requires the total renewal of the mind-set.

Our informal traders must reach out, learn and be learnt by others this will change the way they do business.

That’s all from desk this week! Remember engage and innovate you will go far!

Nathaniel Mlambo is a journalist and producer of training content material.

For feedback email: [email protected]

Share This:

Sponsored Links

We value your opinion! Take a moment to complete our survey

This will close in 20 seconds