THE Institute for Sustainable Africa (INSAF) has urged Small to Medium Enterprises (SMEs) to introduce sustainable business practices in order to attract investment in the sector.
By Business Reporter
Sustainable Development refers to development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Speaking at the INSAF policy dialogue forum for SMEs in Harare recently, INSAF chief executive officer Rodney Ndamba said: “As small businesses in Zimbabwe you need to move towards sustainable business practices as many investors are targeting that sector.
“Demonstrating sustainability, environmental, social and governance in your business has become a key factor for competing and attracting investors to small business enterprises,” Ndamba said.
He said SMEs sector was the most innovative sector and added that consideration of environmental issues in some markets was a key strategy to attract investors According to official statistics, it is estimated that 4% of SMEs in Zimbabwe have Environmental Management Systems (EMAS) or ISO14001 of the International Organisation for Standardisation.
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“It is estimated that only 4% of the SMEs have EMAS or ISO14001 and this is a very small figure,” he said.
Ndamba added that failure to comply with Environmental Management Systems had become a trade barrier for small businesses trying to penetrate international markets and supply chains and compliance has become a basis for entering new markets such as those relating to green economy.
He said sustainable business practices have also become a modern business strategy for long term and sustainable business success.