SME Development

Enterprises and co-operatives development, including development of Small and Medium-sized Enterprises (SMEs) and the informal sector in the southern Africa region,  but at the same time  today severe problems but at the same time great opportunities exist. The most dominant constraints are:

• The economies of Southern Africa are characterized by large informal sectors where micro-enterprises struggle for survival.  Formal sector employees are being retrenched following massive downsizing and privatization in the context of economic reforms.  In particular, women and young people face additional difficulties in finding income generating opportunities.

• The increasing globalization of trade and markets is an additional threat to weak economies where illiteracy, under-skilled work forces, low productivity and competitiveness, lack of access to information and infrastructures, the habit of relying on external support, the absence of a wide spread enterprise culture, the burden of a heavy public sector, are more the rule than an exception.

• The HIV/AIDS pandemic is an emergency which is dramatically affecting the SMEs and the informal sector where the survival of a business is directly linked to the entrepreneur and where skilled people are not easily replaced in short term.

Nevertheless, a number of small and medium size enterprises do have significant potential for growth and, in some specific manufacturing sectors, they can be involved in industrial cooperation activities with foreign partners.

SAMAT is addressing these problems by following the policy framework for ILO's infocus programme on Small Enterprise Development (IFP/SEED). The aim is to  create a conducive environment for SME development to ensure job and enterprise creation, and among the activities are: 

• policy design and policy coordination; 

• support for institutional building; 

• legislation and regulatory framework revision; 

• productivity and quality improvement; 

• human resource development and management training; and 

• partnership support.

The upgrading of SMEs, through their exposure to foreign markets and partners, activities of technological transfer and programmes aimed at making available information, financial support, management and productivity training for small entrepreneurs is being conducted in cooperation with SIYB and FIT projects, and the Jobs For Africa (JFA) programme.

SAMAT has also designed specific activities targeted on the informal sector and the weakest groups in society -  women, youth, retrenches, small co-operatives, people living with HIV/AIDS (PLWHA) etc., will be further developed in order to spread information and to make available knowledge of programmes and opportunities. 

For further information, please contact Ms Sinanzeni Chuma-Mukandawire

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