harare24dmin The structure of the Zimbabwean economy has undergone a fundamental transformation. What was once the formal sector’s domain has decisively shifted, making the Micro, Small, and Medium Enterprises (MSMEs) the new economic mainstream. This sector is no longer a peripheral player; it is the largest employer and a vital shock absorber for a nation facing high formal unemployment. It is therefore an urgent mandate that the Ministry responsible for this engine of growth—currently bundled with other critical portfolios—be given standalone status and led by a tested business visionary who understands the terrain.
The argument for elevating the MSME sector is no longer one of mere developmental rhetoric; it is anchored in hard economic data. According to recent surveys, MSMEs are estimated to employ approximately 4.8 million people full-time, making them the primary source of livelihoods for the majority of citizens. Furthermore, this sector, comprising over 90% of all businesses in Zimbabwe, is credited with contributing over US$8.6 billion to the national GDP—a figure that represents over 60 percent of the country’s economic activity.
These statistics paint a clear picture: the Zimbabwean economy is now MSME-dominated. The Ministry of SMEs must leverage this weight, transitioning from a passive policy custodian to a powerful advocate in government. The Ministries of Finance, Industry, and others cannot formulate effective national strategies without fully appreciating and strategically supporting this powerhouse sector.
A critical part of the Ministry’s new mandate must be to aggressively champion the MSME cause against administrative and regulatory headwinds. The current compliance environment is a clear obstacle to growth and formalisation, making the Ministry the last line of defence for millions of entrepreneurs.
The taxation regime, particularly the administrative burden and high compliance costs, often forces small-scale entrepreneurs to focus on survival rather than growth. The Ministry must champion simplified tax structures, flexible reporting standards, and tax incentives for MSMEs that achieve certain growth milestones or employ a minimum number of people. It must fight for an environment where formalisation is financially and administratively rewarding, not punitive.
The Ministry of Finance must recognise that supporting MSMEs is not a cost—it is the most effective stimulus package for the economy. The SMEs Ministry must argue for dedicated, low-interest, government-backed financing facilities, venture capital funding, and a clear regulatory framework that encourages financial institutions to stop viewing MSMEs as high-risk borrowers. Strict collateral requirements, as noted by industry players, remain a huge obstacle that demands urgent policy intervention.
The ultimate goal must be to transition MSMEs from survivalist enterprises into businesses with the capacity for national and regional scale. This requires dedicated resources and an independent Ministerial portfolio focused on key enablers:
Creating policies that mandate large corporations and government tenders to procure a significant percentage of their inputs and services from local MSMEs, ensuring money circulates within the local economy.
Addressing deficiencies, especially in reliable power supply and internet access, that hinder productivity and access to the vital digital economy.
Moving beyond basic survival training to providing specialised, sector-specific training in modern management, export readiness, and digital marketing to enable true competitiveness.
To effect this monumental shift, the Ministry of SMEs needs to be led by someone with proven entrepreneurial success—a figure whose own journey demonstrates a deep, lived understanding of the business terrain, not just theoretical policy.
The call is for a dedicated Minister of SMEs who has walked the difficult path of enterprise development in Zimbabwe. We need a leadership that can cut through bureaucracy because they have been frustrated by it.
Shingi Mutasa: A renowned business mogul and pan-African investor who has successfully built and scaled Masawara, demonstrating an operator-investor mindset crucial for nurturing growth.
Kuda Tagwirei : KT is one of the many from rags to riches success stories of the Zimbabwean economy, he understands the landscape and knows the hurdles and need for reform in the business ecosystem of Zimbabwe.
Tempter Paul Tungwarara: He is already a Presidential Advisor on Investments and he has created a few viable empowerment projects, maybe put him to full use in a ministry of entrepreneurship.
Tafadzwa Musarara: A figure who understands value chains and commodities, particularly through his involvement in the demanding grain milling sector.
Farai Rwodzi: A high-impact banker and tycoon with significant business interests in finance and mining, capable of bringing high-level financial and corporate discipline to the MSME sector’s strategic direction.
Zimbabwe’s future is being built today, one small business at a time. It is time the government gives this engine the standalone Ministry and the visionary, business-savvy leadership it unequivocally deserves.
