Com­pa­nies, SMEs cre­ate busi­ness link­ages

Chronicle (Zimbabwe) - - Business Chronicle - Oliver Kazunga Se­nior Busi­ness Re­porter

A MA­JOR­ITY of com­pa­nies in the man­u­fac­tur­ing sec­tor have cre­ated busi­ness link­ages with small and medium en­ter­prises (SMEs), stim­u­lat­ing eco­nomic ac­tiv­ity in the coun­try.

Ac­cord­ing to the Con­fed­er­a­tion of Zim­babwe In­dus­tries (CZI) man­u­fac­tur­ing sec­tor sur­vey re­port re­leased last week, although the link­ages with SMEs have not been co­or­di­nated, a num­ber of CZI mem­bers were al­ready work­ing with play­ers in the SMEs sec­tor.

“Fifty three per­cent of the re­spon­dents in­di­cated that they al­ready have SMEs in their sup­ply chain.

“This shows that inas­much as link­ages with SMEs has not been co­or­di­nated, a num­ber of com­pa­nies have al­ready been work­ing di­rectly with SMEs.

“Of the 53 per­cent, 41 per­cent in­di­cated that SMEs sup­ply raw ma­te­ri­als, 10 per­cent in­di­cated dis­tri­bu­tion ser­vices, two per­cent in­di­cated af­ter sales sup­port,” said CZI in the re­port.

The growth of the SMEs and co-op­er­a­tives in the coun­try has kin­dled hope for an in­dige­nous driven in­dus­try re­vival and an op­por­tu­nity for in­creased job op­por­tu­ni­ties.

In the 2017 na­tional bud­get, which is set for pre­sen­ta­tion on the 8th of De­cem­ber, it is en­vis­aged that Fi­nance and Eco­nomic De­vel­op­ment Min­is­ter Pa­trick Chi­na­masa would give ad­e­quate at­ten­tion to SMEs and co-op­er­a­tives.

The Govern­ment has noted that the SMEs sec­tor plays a cru­cial role in the econ­omy em­ploy­ing about 60 per­cent of the coun­try’s work­force and con­tribut­ing about 50 per­cent to the Gross Do­mes­tic Prod­uct.

How­ever, de­spite their crit­i­cal role, SMEs were faced with con­straints such as in­ad­e­quate fund­ing, lack of en­tre­pre­neur­ial skills, tech­nol­ogy and man­age­ment. — @okazunga

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