Amend outdated laws for SMEs growth : IAPAZ
STAFF WRITER
The Indigenous Advisory Practitioners Association of Zimbabwe (IAPAZ) has called for immediate amendment and relook at laws that restricts growth of small enterprises.
Among the laws IAPAZ needs to be relooked as they are barriers to progress are the Iron and Steel Industry Act [Chapter 14:11], enacted in 1956, the Sugar Production Control Act [Chapter 18:19], established in 1964, and the Factories and Works Act [Chapter 14:08], dating back to 1951.
The organisation says the laws, originally designed to protect large corporations, have become increasingly obsolete in a modern Zimbabwe.
The constraint, IAPAZ say, is a hindrance towards Zimbabwe’s trajectory in moving with the full operationalization of the African Continental Free Trade Area (AfCFTA), which demands a robust and inclusive industrial base.
Lawyer Sibangani Chimedza, who is chairperson of the IAPAZ Legal Desk stressed the importance of these reforms saying : “The outdated laws such as the Iron and Steel Industry Act, the Sugar Production Control Act and the Factories and Works Act among other commercial laws are no longer fit for purpose in today’s economy that is SMEs dominated.”
“These Acts were designed for a different era and now serve as barriers to MSME participation in critical sectors like manufacturing. We need a legal framework that recognizes the evolving industrial landscape and supports MSMEs in becoming key players in our economy,” Chimedza said.
He emphasized the positive impact of liberalization in other sectors such as gold mining and agriculture, as a model for reform.
“The government’s decision to open the gold mining, wheat, and tobacco sectors to smaller players has resulted in remarkable growth. For example, in 2023, Zimbabwe achieved a record-breaking 36 metric tonnes of gold production, and wheat production reached 400,000 tonnes, surpassing national demand for the first time in decades,” he said.
“The tobacco sector also saw unprecedented levels of production, with over 250 million kilograms processed. These successes underscore the transformative effect of policies that democratize access and empower smaller producers.”
He said proper legislation draw positive results on the grounf giving India and China as examples.
“In India and China, small-scale food processing is often conducted at the street level, yet it is managed with high safety and hygiene standards, and there are no significant public health issues,” he said. “This shows that it’s possible to support smallscale enterprises while ensuring public safety. Zimbabwe needs laws that enable manufacturing and processing at all levels—household, village, national, and global—without compromising health standards.”
“We need a regulatory framework that fosters a dynamic and competitive manufacturing sector, where MSMEs can thrive alongside larger corporations,” he stated.
“By doing so, we can create a balanced industrial environment that encourages innovation and growth, essential for meeting the demands of AfCFTA and aligning with Vision 2030.”
