By Elishamai Ziumbwa
Women’s Affairs Minister, Monica Mutsvangwa has raised alarm over the financing crisis gripping the country’s small and medium enterprises (SMEs) warning that without urgent reform, the sector’s growth will remain stunted.
Speaking at an SME workshop hosted by the Securities and Exchange Commission of Zimbabwe (SECZim) in Harare, Mutsvangwa said access to affordable and long-term finance remains the “lifeblood” missing from the country’s entrepreneurial ecosystem.
“SMEs are the heartbeat of Zimbabwe’s socio-economic development, yet they continue to be strangled by a lack of finance. We must diversify funding sources and eliminate bottlenecks in the traditional banking system if SMEs are to realize their full potential,” she said
According to the 2021 ZIMSTAT survey, Zimbabwe has an estimated 3.4 million SMEs with women accounting for 56% of these enterprises.
Mutsvangwa said most of these firms are locked out of mainstream finance relying instead on personal savings and family support to survive.
She pointed to capital markets as a critical but underutilised tool in bridging the funding gap.
“By pooling local and international resources, capital markets can provide SMEs with patient, long-term financing that supports innovation, retooling and expansion,” she said.
The Minister also highlighted the challenges faced by women-led enterprises which form the majority of SMEs.
While welcoming the establishment of the Zimbabwe Women’s Microfinance Bank she called for more tailored financial products to empower female entrepreneurs.
Mutsvangwa added that the digital economy particularly start-ups in fintech, health, agriculture and energy was being starved of capital due to perceptions of risk.
She urged lenders and policymakers to design “innovative financing models” that recognise new business realities.
The SECZim workshop, held under the theme “Enhancing Sustainable Businesses: Capital Market Opportunities and Challenges from an SME Perspective” drew participants from the Zimbabwe Stock Exchange, Finsec, industry associations and capital market players.
The Minister made a rallying call: “Together, we can build a vibrant capital market that not only supports our SMEs but also drives sustainable economic growth for Zimbabwe.”
