Problems and Purpose

One of the primary challenges faced by MSMEs in Buawayo was the lack of policies supporting them. Many of them operated informally, which limited their access to formal financial services and markets. The lack of proper infrastructure, such as designated vending spaces and market facilities, worsened the situation. Additionally, the regulatory environment was harsh, with stifling procedures that hindered business operations. 

Background History and Context

The MSME sector in Bulawayo is the backbone of the local economy, providing employment and opportunity for many. However, the sector has been subjected to numerous challenges, including the lack of formal recognition, limited access to finances and inadequate infrastructure. In turn, this has brought about a chain reaction on issues, including friction between local authority and informal vendors and traders. 

Recognizing the need for change, local business owners, community leaders, and advocacy groups began lobbying for policies that would support and formalize the MSME sector. These efforts included engaging with local authorities, participating in public consultations, and forming alliances with other stakeholders. The goal was to create a more enabling environment for MSMEs, one that would facilitate their growth and integration into the formal economy.

Micro, Small, and Medium Enterprises are vital to the economy of Bulawayo, Zimbabwe’s second-largest city. This article chronicles their journey from grassroots lobbying for favourable policies to formal recognition and support by local authorities.

Policy Development and Implementation

Formulation of MSME Policies

The sustained lobbying efforts bore fruit with the formulation of specific policies aimed at supporting MSMEs. The Bulawayo City Council (BCC), in collaboration with other stakeholders, developed a comprehensive MSME Policy and Strategy Framework for 2020-2024. This framework outlined various measures to promote the growth and sustainability of MSMEs, including access to finance, infrastructure development, and capacity-building initiatives (Status of MSME Policy and Strategy Framework 2020-2024).

Key Provisions of the MSME Policy

The MSME Policy and Strategy Framework introduced several key provisions designed to address the challenges faced by MSMEs. These included the establishment of designated vending spaces, simplification of business registration processes, and the provision of training and support services. Additionally, the policy emphasized the importance of collaboration between MSMEs and local authorities to ensure effective implementation and monitoring.

Role of Bulawayo Vendors and Traders Association (BVTA)

The BVTA played a pivotal role in the development and implementation of the MSME policy framework. As an advocacy group representing the interests of informal vendors and traders, the BVTA actively participated in policy discussions and consultations. The organization also facilitated training programs for MSME traders, equipping them with essential business skills and knowledge.

Government Support Measures

In addition to local policy initiatives, the national government also introduced measures to support MSMEs. One notable initiative was the establishment of the foreign currency auction system, which provided MSMEs with greater access to foreign currency for importing essential goods and services. This system significantly enhanced the operational capabilities of MSMEs, enabling them to expand their businesses and compete more effectively in the market.

Formal Recognition and Support

Allocation of Vending Spaces

A significant milestone in the journey of MSMEs in Bulawayo was the formal allocation of vending spaces by the BCC. This initiative aimed to provide MSMEs with secure and accessible locations to conduct their businesses. The allocation process involved extensive consultations with MSME representatives to ensure that the needs and preferences of the traders were adequately addressed. As a result, over 1,660 micro-enterprises were allocated vending bays at key market sites in Bulawayo

Collaboration with Institutions of Higher Learning

The successful implementation of the MSME policy framework was further strengthened through collaborations with institutions of higher learning and training centers. These institutions played a crucial role in providing technical and vocational training to MSME operators, enhancing their skills and competencies. Such partnerships also facilitated research and innovation, driving the development of new products and services within the MSME sector (Status of MSME Policy and Strategy Framework 2020-2024).

Capacity-Building Initiatives

Capacity-building initiatives were central to the efforts to formalize and support MSMEs in Bulawayo. Various training programs were conducted to equip MSME operators with skills in business management, financial literacy, and marketing. These programs were often organized in collaboration with non-governmental organizations (NGOs) and international development agencies, ensuring that MSMEs received comprehensive support tailored to their specific needs.

Impact and Outcomes

Economic Empowerment

The formal recognition and support of MSMEs in Bulawayo have had a significant impact on the local economy. By providing secure and designated spaces for business operations, MSMEs have been able to operate more efficiently and attract a larger customer base. This has led to increased income and economic empowerment for MSME operators, contributing to poverty reduction and improved livelihoods.

Enhanced Market Access

The simplification of business registration processes and the provision of training and support services have enabled MSMEs to integrate more effectively into formal markets. This has opened up new opportunities for growth and expansion, allowing MSMEs to reach a wider customer base and increase their market share. Improved access to finance has also enabled MSMEs to invest in their businesses and enhance their competitiveness.

Strengthened Collaboration

The collaboration between MSMEs, local authorities, and other stakeholders has fostered a more inclusive and supportive business environment. Regular consultations and feedback mechanisms have ensured that the needs and concerns of MSMEs are addressed in policy development and implementation. This collaborative approach has also facilitated the sharing of best practices and knowledge, driving continuous improvement within the MSME sector.

To gain a deeper understanding of the challenges faced by informal vendors, we spoke with Michael Ndiweni, Director of the Bulawayo Vendors and Traders Association (BVTA). Michael shared some insights on the journey he witnessed in the strife for formal recognition of the MSMEs sector.

Below is an excerpt from our conversation, where Michael discusses the key highlights of the journey.

Q: What were some of the biggest hurdles in the journey to gaining recognition for MSMEs?

A: We dealt with allegations of of ulterior motives and hidden agendas for BVTA. There was suspicion that BVTA is political, insincere, and fraudulent. We got insults from associations that have since become dear friends and were kicked out and blocked out of meetings.

Q: Has this milestone brought about development in BVTA’s plans for the future regarding MSMEs

A: Having a section dedicated to MSMEs shows that local authority and government is now ready to play its part. It’s no longer an issue of associations – it’s now a collective effort which will transform the informal sector in Zimbabwe.

Q: Have there been unanticipated outcomes from this milestone?

A: Being given a mandate to run the market. A huge milestone. Many didn’t think we’d get there. Council made a resolution and delegated the market to BVTA.

The journey of MSMEs in Bulawayo from grassroots lobbying to formal recognition and support is a testament to the resilience and determination of local business owners and community leaders. Through collaborative efforts and comprehensive policy initiatives, MSMEs have been able to overcome significant challenges and contribute meaningfully to the local economy. As the sector continues to evolve, ongoing support and investment will be vital to ensuring that MSMEs can thrive and drive sustainable economic growth in Bulawayo.