SMEs Have Transformed the Economy: Min Mutsvangwa

As the nation commemorated SADC Anti-Sanctions Day, our News Editor Itai Mazire (IM) sat down with the Minister of Women Affairs, Community, Small and Medium Enterprises Development (SMEs), Minister Monica Mutsvangwa (MM), to discuss how the Second Republic’s policies have enabled the sector to thrive despite sanctions.

Minister Mutsvangwa shared insights on the government’s efforts to propel SMEs forward, which now contribute over 70 percent of the country’s total manufacturing output.

IM: Zimbabwe has been under sanctions for the past two decades, and a new industrial revolution is underway under President Mnangagwa to attain an upper-middle-income economy. Your Ministry has shown resilience in transforming the economy under these punitive measures. How has the Ministry crafted a raft of measures to win this war for Zimbabwe?

MM: It is pleasing to note that even under the prevailing economic sanctions, the SME sector over the past two decades has demonstrated remarkable resilience, innovation, and adaptability, becoming a key agent of transformation in the national economy.
SMEs have been instrumental in contributing to employment creation, poverty reduction, manufacturing growth, and rural industrialisation, thereby driving inclusive and sustainable economic development across the country.

IM: How can we tell that this has been achieved, and what evidence or authoritative information shows that SMEs have played a pivotal role in transforming the economy?

MM: The Confederation of Zimbabwe Industries (CZI) Manufacturing Sector Survey of 2025 reveals that SMEs are now the bedrock and pillar of economic growth, accounting for the majority of enterprises operating within the manufacturing sector.
In fact, most industries in Zimbabwe are SMEs by definition, and their increasing participation has substantially boosted the manufacturing sector’s contribution to GDP. According to the same survey, SMEs now contribute more than 79.75 percent of the country’s total manufacturing output, underscoring their vital role in sustaining industrial activity and driving economic recovery.

IM: How can we tell the nation that SMEs are playing a pivotal role in economic transformation, which has seen millions of people under your Ministry being productive and bolstering the country’s Vision 2030?

MM: SMEs have diversified their operations, and their participation now spans multiple value chain production processes, including agriculture, iron and steel, furniture, leather, engineering, chemicals, plastics, clothing, and food processing.
These enterprises are at the forefront of import substitution, producing high-quality goods such as furniture, leather products, bolts and nuts, grinding mills, mining equipment, domestic and industrial chemicals, plastic packaging materials, clothing, and food products, among many others. This resilience has not only cushioned communities from the adverse effects of sanctions but has also strengthened domestic industries, reinforced local value chains, and promoted inclusive economic participation across all sectors.

IM: We understand a raft of measures is being implemented by the Ministry to promote SMEs to sell their products on the global market. How is this initiative progressing under the Second Republic?

MM: A key pillar of the Ministry’s success has been facilitating training and capacity building for SMEs.
The Ministry has also made significant progress in improving access to markets for SMEs. This year alone, the Ministry mobilised producers from 51 SMEs across the country to exhibit at the recently held Japan World Expo, showcasing Zimbabwean innovation and craftsmanship on the global stage. Furthermore, the Ministry continues to collaborate with development partners to position SMEs to take full advantage of emerging opportunities under the African Continental Free Trade Area (AfCFTA).

In response to the remarkable growth of SMEs, there has been a significant increase in the demand for business infrastructure, including trading marts, factory shells, and manufacturing spaces. To address this, the Ministry, through Public-Private Partnerships (PPPs) with local authorities, development partners, and the private sector, is spearheading the development and refurbishment of SME workspaces across the country.