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SMEs contribute 20% of tax revenue

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SMALL-to-medium enterprises (SMEs) in Zimbabwe are now making up about 70% of registered taxpayers and contributing close to 20% to tax revenue following the collapse of the formal sector in recent years, an official has said.

BY MTHANDAZO NYONI

Small and Medium Enterprises Development minister Sithembiso Nyoni
Small and Medium Enterprises Development minister Sithembiso Nyoni

In a Zimbabwe International Trade Fair (ZITF) newsletter, Small-to Medium Enterprises and Co-operative minister Sithembiso Nyoni said SMEs were now the backbone of the economy, as they make up about 70% of the registered taxpayers, contributing close to 20% to tax revenue.

“As from January to April this year, we have more than 6 000 registered SMEs and the majority of them are coming to the fair to make a difference. These SMES are coming to create opportunities and identify markets,” Nyoni said.

“History has shown that most SMEs, who have participated in the previous ZITF exhibitors managed to get lucrative deals. What is important is for them to bring quality products so that they can get partnerships,” she said.

ZITF runs up to Saturday under the theme Harnessing Linkages for Industrial Development.

Nyoni advised SMEs to vigorously market their products and use the platform to create new markets in areas where the importation of certain goods is banned.

She said the government crafted many policies to stimulate growth through creating markets for local business.

The introduction of Statutory Instrument 64 has been helpful to most SMEs, as some of them are now producing cooking oil.

The manufacturing sector is now doing well with the help of SMEs and this shows why they should participate in numbers.

Nyoni also said ZITF 2017 was the opportunity for SMEs to create partnerships, especially in the production of goods that are banned under SI 64.

She urged them to identify opportunities and sell their ideas to prospective businesses.

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