Formalising Zimbabwe’s informal economy- full statement and debate

MR. GABBUZA: Mr. Speaker, I wish to thank the Minister for the statement and congratulate her for the very good effort. However, the major borne of contention is, as long as the Minister does not put a timeline as to when the formalisation should take place- when it should start and when it should end, we are likely not to benefit from the formalisation advantages.

Could the Minister therefore, indicate if there is any time-frame for these activities she is putting in place? Could the Minister also indicate what incentives there are? My view is that the Minister should perhaps have put aside a fund which will attract SMEs to formalise their businesses. There could be a fund for small loans or a fund maybe to put up structures so that if one moves into a proper physical infrastructure, then you are able to benefit from that fund and automatically you are registered for formalisation.

Could the Minister give some more flesh on that?

THE MINISTER OF SMALL AND MEDIUM ENTERPRISES AND CO-OPERATIVE DEVELOPMENT (MRS. NYONI): Thank you Mr. Speaker Sir. On timelines, I would like to say this is a beginning. If the hon. member could bear with us, we are also going to be bringing a policy on formalisation. We will give timelines as soon as we are settled and have confidence on how the process is moving.

On incentives, we are working together with the Ministry of Finance, ZIMRA, the Registrar of Companies and the Ministry of Industry and Commerce, so that all the constraints that were hindering SMEs from formalisation are dealt with by all the relevant ministries and agents. All the other incentives, just this morning I had a meeting with the Ministry of Local Government, Public Works and National Housing. We agreed that this US$180 to start with; anybody who formalises and is registered with our Ministry, we should then send their names to the Ministry of Local Government, Public Works and National Housing so that they are given specific space within which to operate. The Ministry of Local Government , Public Works and National Housing is making plans to ensure that even this incentive goes out to the rural areas as well. Incentives are being worked on because incentives do not necessarily come from my Ministry alone; they have to come from other ministries as well. This is why I sat in that Steering Committee, together with the Advisory Council that I launched this week. These things hon. member will be addressed. Thank you Mr. Speaker.

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