SMEDCO rolls out US$15m to unlock SME growth

STAFF WRITER

Zimbabwe’s small and medium enterprises are set for a major transformation as the Small and Medium Enterprises Development Corporation (SMEDCO) rolls out a US$15m infrastructure investment drive aimed at creating modern business hubs, accelerating formalisation and powering the country’s industrialisation agenda under the National Development Strategy 2 (NDS2).

The ambitious programme marks a decisive shift in SMEDCO’s role, moving beyond traditional development finance to building the physical foundations required for sustainable enterprise growth.

For years, thousands of micro, small and medium enterprises (MSMEs) have battled to expand due to limited access to affordable, secure and compliant operating spaces.

SMEDCO’s infrastructure push seeks to address this structural bottleneck by creating purpose-built commercial and industrial facilities where businesses can operate, scale and integrate into formal value chains.

The US$15m portfolio, spread across key economic centres, is designed to stimulate entrepreneurship, create jobs and unlock new opportunities for local production.

The investment comes at a critical time as Zimbabwe accelerates implementation of NDS2, which places industrialisation, private sector growth and inclusive economic development at the centre of efforts to achieve upper-middle-income status by 2030.

Infrastructure remains one of the strongest drivers of economic expansion, with global evidence showing that well-targeted investments in productive assets can generate significant multiplier effects by increasing business activity, attracting private capital and expanding government revenues.

For SMEDCO, however, the infrastructure programme is about more than constructing buildings. It is about changing the operating environment for entrepreneurs and giving SMEs the tools needed to transition from survivalist enterprises into sustainable businesses.

Many small businesses have historically operated from temporary, congested or unsuitable spaces, limiting their ability to secure licences, meet compliance requirements and access formal financing.

By providing modern, secure and compliant workspaces, SMEDCO is helping entrepreneurs build credibility, access markets and participate more effectively in national and regional value chains.

One of the flagship projects under the programme is the redevelopment of Gazaland in Highfield, Harare, a long-standing commercial hub for metal fabricators, manufacturers and traders.

Working with Harare Polytechnic as the main contractor, SMEDCO is constructing 47 modern market stalls, complemented by pavement upgrades and improved ablution facilities.

The project is expected to transform the area from an informal trading centre into a structured enterprise hub, improving hygiene, safety and productivity while giving traders a more dignified environment to grow their businesses.

For entrepreneurs operating at Gazaland, the development represents more than physical infrastructure; it provides a pathway from informal trading into organised commercial activity.

Beyond Harare, SMEDCO is expanding its footprint through decentralised projects aimed at spreading economic opportunities across provinces.

The Goldridge Complex in Bindura, Mashonaland Central, is a key example of this strategy.

Scheduled for completion in the fourth quarter of 2026, the modern MSME hub is being developed in partnership with the Public Service Pension Fund through First Mutual Wealth Managers.

The project represents a strategic collaboration between development finance and long-term investment capital, bringing enterprise infrastructure closer to communities outside the capital.

By establishing provincial business centres, SMEDCO is reducing geographical barriers to entrepreneurship while supporting local job creation and economic diversification.

The Corporation’s infrastructure strategy is also aligned with global sustainability trends.

As a member of the Green Building Council of Zimbabwe (GBCZ), an institution affiliated with the World Green Building Council, SMEDCO is integrating environmentally responsible construction practices into its projects.

The focus on green infrastructure ensures that new commercial hubs are energy efficient, climate resilient and aligned with international environmental, social and governance (ESG) principles.

This approach reflects a broader recognition that economic growth must be sustainable and that tomorrow’s infrastructure should support both business expansion and environmental protection.

The momentum behind SMEDCO’s infrastructure programme has been driven by strategic leadership from the Ministry of Women Affairs, Community, Small and Medium Enterprises Development and the Corporation’s Board, which has positioned infrastructure as a critical instrument for inclusive economic transformation.

Under this vision, SMEDCO is prioritising projects that support women entrepreneurs, create opportunities for young people and promote rural industrialisation.

The Corporation’s strategy is anchored on the belief that inclusive growth requires more than access to finance, it requires the physical ecosystems where businesses can thrive.