The Sunday Mail
Sunday Mail Reporter
Small and medium enterprises are filling market supply gaps left by giant corporates which are struggling to produce optimally, a development analysts say points to shifting economic trends.
Zimbabwe National Chamber of Commerce deputy president Mr Davison Norupiri said such enterprises — if supported adequately – could sustain the economy.
“What is happening is that there is a shift in the economy and most people are not realising it. In the past, we had companies like, for instance, Victoria Foods and Dairiboard, supplying the whole country, but now they are operating way less than 50 percent capacity.
“This is where medium scale companies step in to fill the gaps. What we are seeing now is not the true reflection of our economy.
‘‘Of course, the economy is struggling, but we have these medium companies which are fast growing. There is now need for research on these medium companies and to adequately support them.”
Zimbabwe Congress of Trade Unions (ZCTU) secretary-general Mr Japhet Moyo said Government should provide incentives to small and medium scale companies.
“We have managed to empower our people through various policies set up by Government. It is important that we now focus on providing support by creating a conducive environment that will see these businesses thriving,” he said.
“The Government should now focus on removing unnecessary taxes and levies that are hindering the growth of these companies.”
In his 2015 National Budget Statement, Finance and Economic Development Minister Patrick Chinamasa said 4 600 companies shut down between 2011 and October 2014, resulting in 64 000 job losses.
His Small and Medium Enterprises and Co-operative Development counterpart, Cde Sithembiso Nyoni, had earlier in 2014 told Parliament that about 5,7 million jobs had been created from 2,8 million medium businesses, while 800 000 small businesses employed 2,9 million people.
Confederation of Zimbabwe Industries immediate past president Mr Charles Msipa said it was normal in any economy for medium scale companies to complement corporates, adding that this was a clear sign that the economy was on a recovery path.
He pointed out, though, that equal focus should be directed towards reviving large corporates.
