RYAN CHIGOCHE
The small to medium enterprises (SMEs) have partnered the ZimTrade and Standards Association of Zimbabwe (SAZ), to help small enterprises develop products for export markets, Business Times can report.
Small to Medium Enterprises Association of Zimbabwe CEO, Farai Mutambanengwe (pictured), said the move will see a number of SMEs produce goods that will be attractive to the export market.
Mutambanengwe said SMEs should think beyond the border especially considering Zimbabwe is a small market with about 15m people, meaning relying on the local market alone will hinder and restrict business growth for the enterprises.
More so, the increasing foreign currency shortages in the country has also necessitated that all businesses look for ways of generating forex as well as diversify operations to minimise country risk.
“The programme is meant to assist our SMEs to refocus their business with an aim to become at least regional and hopefully international players.
“Penetrating these markets requires in-depth knowledge of requirements as well as capacity building to be able to meet our customer expectations,” Mutambanengwe told Business Times.
He added: ‘’We assist members with any category of exports. We do not prescribe the products or markets. It’s up to the individual business. We just help in the identification and development of the export potential of the business.’’
The development comes at a time when the bulk of SMEs are finding it difficult to access forex from the Dutch foreign currency auction system.
According to Mutambanengwe, only about 3 000 have accessed funds since the launch of the forex auction system last year.
The number, Mutambanengwe said, was a small figure given the spread of SMEs across the country.
The Export Development Program is expected to see quite a number of MSMEs generating the much-needed foreign currency on their own easing pressure on the forex auction in the process with the country also benefitting.
Since April this year, the Reserve Bank of Zimbabwe has been disbursing forex to bureaux de change to allow SMEs and individuals to participate in the foreign exchange market to meet the foreign currency needs.
This arrangement together with the forex auction system was expected to improve the efficacy of the foreign exchange market in the country and enhance the accessibility of foreign currency by small-scale enterprises and individuals through formal channels.
But however foreign currency has continued to be scarce leaving most SMEs on the brink of collapse as they are now buying foreign currency on the parallel market or illegal money lenders who charge extortionate interest rates.
