By Kudzaishe Chimonera
The Zimbabwean government is reviewing business fees and modernising the legal framework for Micro, Small and Medium Enterprises (MSMEs) as part of efforts to strengthen the sector and encourage formalisation, Minister Monica Mutsvangwa has said.
Addressing delegates at the Vendors Initiative for Social and Economic Transformation (VISET) National Open Policy Discourse Dialogue on Informal Economy Taxation in Harare, Mutsvangwa highlighted the pivotal role of the informal sector in driving employment and contributing to the country’s GDP.
“Micro, Small, and Medium Enterprises (MSMEs) are the backbone of our economy, making a significant impact on employment, innovation and poverty alleviation. Approximately 86% of these MSMEs operate within the informal sector, which accounts for over 70% of all jobs and contributes more than 60% to our GDP,” she said.
Despite their importance, the Minister noted, MSMEs face challenges including limited access to finance, burdensome regulations and inadequate infrastructure.
“The need to cultivate a vibrant MSME sector has never been more evident,” Mutsvangwa said.
She said the government is currently reviewing the SME Policy Framework and the SME Act to ensure they remain relevant and aligned with emerging economic trends and international best practice.
“A modernised and harmonised SME framework will strengthen competitiveness, support sustainable enterprise growth and position MSMEs as key drivers of Zimbabwe’s industrialisation and broader economic transformation,” she said.
Mutsvangwa explained that the review of business fees and licences is intended to reduce compliance costs, lower entry barriers and promote inclusive participation particularly among women, youth and emerging entrepreneurs.
“The ongoing process of review of business fees and licenses by the Government is not merely a cost adjustment; it is a deliberate strategic intervention to stimulate enterprise growth,” she said.
She added that, in the long term, the reforms would improve competitiveness, broaden participation and enhance revenue sustainability.
“In the long term, it broadens the tax base and strengthens revenue sustainability,” Mutsvangwa said.
The Minister also highlighted government investments in SME workspaces in Harare, Chivhu, Gwanda and Gweru to improve operating conditions and productivity.
“Government remains committed to mobilizing additional resources to expand this programme nationwide,” she said.
On financial inclusion, Mutsvangwa said initiatives such as the Women’s Development Fund and the Community Development Fund alongside institutions like SMEDCO and the Zimbabwe Women’s Microfinance Bank are being strengthened to improve access to capital.
“The establishment of initiatives such as the Women’s Development Fund and the Community Development Fund aims to deliver targeted financial support to MSMEs,” she said.
She also stressed the importance of digital transformation and technology adoption.
“In the digital age, leveraging technology is no longer an option; it is a necessity,” Mutsvangwa said.
She concluded by urging collaboration between government, the private sector and civil society to build a resilient and competitive MSME sector.
“Let us continue to work collaboratively with all stakeholders, government, private sector, and civil society to create a vibrant MSME sector,” she said.
