Companies, SMEs create business linkages

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