The Sunday Mail
Business Reporter
TOTAL Zimbabwe is supporting upcoming businesses that lack the financial wherewithall to set up shop.
Through the programme, Total Zimbabwe will inject a cumulative US$35 000 into three business proposals each year.
For the current year, more than 250 proposals have been received, according to the company’s smartcard manager, Ms Anesu Mutasa.
Total is targeting entrepreneurs below the age of 35, and the businesses should be less than two-years-old.
“We know there are a lot of upcoming businesses that do not have capital to realise their full potential. The SMEs sector is now contributing significantly to the economy; through adequate support, the sector has potential to turn around the economy.
“So we are sponsoring the top three business proposals we got out of over 250 applications so they can grow their businesses…
“The main thrust of the programme is creating and growing opportunities for businesses, skills development and provision of funding for indigenous business ventures especially start ups,” said Ms Mutasa.
She added that the programme, which started this year, was a show of Total’s commitment to Zimbabwe market and a contribution to national policies as espoused in President Mugabe’s 10-Point Plan for Economic Growth and the economic blueprint, Zim-Asset.
These emphasise strengthening SMEs as a strategy for poverty eradication, employment creation and sustainable economic empowerment.
According to the 2016 National Budget, the SMEs sector employs about 60 percent of the country’s workforce and contributes about 50 percent of GDP.
Government is assisting SMEs through financing, infrastructure, technology, marketing as well as management and entrepreneurial skills.
Construction of an incubation centre for SMEs is underway in Harare and installation of equipment is expected to be completed by the end of the year, according to Treasury.
In the 2016 Monetary Policy Statement, Reserve Bank of Zimbabwe Governor Dr John Mangudya acknowledged that the majority of SMEs lacked adequate infrastructure and funding to enhance business operations and properly structure them towards viability.
He underscored the need for financial institutions to increase support to the sector through development of innovative demand-driven products.
Monetary authorities are pushing banking institutions to establish a dedicated micro and SMEs business unit to support the sector.
