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SMEs Have Transformed the Economy: Min Mutsvangwa

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Zimbabwe's Handicraft Industry exports over USD600K worth of goods to Japan

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.

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POTRAZ Q4 Report Highlights NetOne’s Strong Digital Growth and Rural Connectivity Expansion

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Engineer Raphael Mushanawani

The latest Fourth Quarter 2025 Postal and Telecommunications Sector Performance Report released by the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) has highlighted NetOne⁠’s growing role in driving Zimbabwe’s digital transformation through infrastructure expansion, rising data usage and improved rural connectivity.

According to the report, NetOne recorded significant growth in mobile internet and data traffic during the final quarter of 2025, with usage increasing by 18.50 percent from 25.29 billion megabytes in the third quarter to 29.97 billion megabytes in Q4.

The growth also resulted in a 1.14 percentage point increase in the operator’s mobile internet and data traffic market share, strengthening NetOne’s competitiveness in the country’s fast-growing digital communications sector.

The report further noted growth in NetOne’s active subscriber base, which rose from 4,062,894 subscribers to 4,101,492 during the quarter, reflecting continued customer confidence in the operator’s services and digital products.

POTRAZ acknowledged the company’s continued investment in network infrastructure, particularly in expanding broadband access across the country.

“NetOne continued to make strides particularly in 3G and LTE deployments, to expand its network coverage,” the report stated.

During the quarter, the operator added 89 LTE base stations while increasing its 5G sites from 21 to 26 as part of efforts to improve connectivity and digital inclusion.

The report also identified NetOne as a major contributor to rural telecommunications infrastructure, revealing that the operator now controls 46.14 percent of Zimbabwe’s rural base stations.

The expansion of rural connectivity is helping bridge the digital divide by improving access to online learning, financial services, healthcare information and digital commerce opportunities in underserved communities.

Under the leadership of Group Chief Executive Officer Raphael Mushanawani, the company has continued repositioning itself as a modern digital services provider focused on innovation, accountability and customer-centred solutions.

Commenting on the latest sector performance results, Engineer Mushanawani said the company remained committed to inclusive national development through digital connectivity.

“These results affirm our commitment to connecting communities, empowering businesses and accelerating Zimbabwe’s digital transformation through resilient and accessible network infrastructure,” said Engineer Mushanawani.

NetOne has also expanded customer-focused services through affordable broadband packages, improved OneMoney solutions and data bundles designed for students, entrepreneurs and rural communities.

Beyond telecommunications services, the company has intensified its corporate social responsibility programmes, including borehole drilling initiatives, support for schools through digital learning tools and partnerships with healthcare institutions on community wellness programmes.

The operator’s commitment to diversity was also reflected in its workforce, with women accounting for 436 out of its 1,045 employees.

In recognition of his leadership and contribution to Zimbabwe’s telecommunications industry, Engineer Mushanawani was recently inducted into the prestigious Business Leaders Hall of Fame 2026.

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Minister Masuka Defends BIPPA Farm Returns, Says Land Reform Remains Irreversible

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The Government has dismissed claims that the return of 67 farms protected under Bilateral Investment Promotion and Protection Agreements (BIPPA) marks a reversal of Zimbabwe’s land reform programme, with authorities stressing that the move is part of resolving legal obligations and strengthening the country’s land tenure framework.

Acting Leader of Government Business in Parliament, Minister of Agriculture, Mechanization and water resource Dr Anxious Masuka, on Wednesday directly addressed the misconception, explaining that the return of BIPPA properties is a narrowly defined legal and constitutional obligation not a policy shift back to the pre-2000 era.

“The BIPPA process is about settling outstanding legal claims and compensating investments protected by bilateral treaties, it does not open the floodgates for the return of all former white farms, the land reform programme remains irreversible,” he said.

The Minister confirmed that while 67 properties covered under BIPPA will be returned to their previous owners, this represents a fraction of the total land under the programme and is being done strictly within the framework of Zimbabwean law and international investment obligations.

The development comes at a time when the government is simultaneously granting secure tenure to a staggering 450,000 black farmers under President Emmerson Mnangagwa’s administration.

According to the Minister, in terms of the Constitution Sections 289, 293, and 295, the government will provide permits, leases, and offer letters to 360,000 A1 farmers 23,500 A2 farmers Over 70,000 old resettlement farmers.

In addition to these, the government is correcting historical and administrative errors that have fuelled the reversal myth. Authorities are returning 840 farms that were wrongly gazetted but which rightfully belong to black farmers.

In another move that reinforces the government’s commitment to indigenous ownership, some 10,000 Matenganyika farms whose beneficiaries were given leases before 1980 will now finally receive title deeds.

For the 409 former farm owners who have remained on their properties due to long-standing peaceful co-existence with new owners, the government has crafted a specific solution that stops short of outright reversal. These individuals will now be allowed to purchase the properties they occupy.

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El Niño Threat Looms

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Itai Mazire

Zimbabwe faces a high probability of a looming El Niño event during the 2026/27 rainy season, with forecasts indicating a significant chance of below-normal rainfall.

The Meteorological Services Department (MSD) has issued a preliminary update, urging calm but emphasising the need for proactive measures.

Global climate forecasting centers predict an 88 to 94 percent chance of an El Niño event, historically linked to drier-than-average conditions in Zimbabwe.

“Historically, El Niño conditions in Zimbabwe carry a 65 percent chance of below-normal rainfall, which can lead to drier-than-average conditions.”

Despite the concerning outlook, the MSD cautions against premature decisions.

They said that early forecasts face a “spring predictability barrier,” meaning atmospheric and oceanic conditions could still change significantly before the season begins.

Consequently, the department has not yet released its official seasonal forecast.

“Because of this inherent uncertainty, the MSD has not yet issued its official seasonal forecast and warns the public and stakeholders against making final agricultural or financial decisions based solely on these preliminary models,” the statement read.

A more definitive national outlook (NACOF) is anticipated in August 2026, following the Southern African Development Community (SADC) Climate Outlook Forum (SARCOF).

In the interim, the MSD is advising both the public and the farming community to remain composed.

They recommend continuing with standard preparations for the upcoming season and adopting climate-resilient practices.

These practices include water conservation and the identification of drought-tolerant seed varieties.

The MSD further encouraged stakeholders to stay informed through official channels.

“Stakeholders are encouraged to stay informed exclusively through official MSD channels for regular updates as the weather outlook becomes clearer in the months ahead.”

The upcoming NACOF report will incorporate more recent data, providing crucial scientific guidance for accurate seasonal planning.

The MSD will continue to monitor updates closely.

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