Risk mitigation a necessity for SMEs long-term success: Gvnmt
Staff Writer
The government says there is a general lack of appreciation for risk mitigation and insurance among MSMEs as a tool to mitigate risk, putting the continuity of economic activities within the sector in doubt should mishaps occur.
This was said by Dr Mavis Sibanda Permanent Secretary Ministry of Women Affairs, Community, Small and Medium Enterprises Development at a risk management and business insurance training in Harare.
The inaugural Training of Trainers on Risk Management and Business Insurance for Business Development Officers in the Ministry was aimed at capacitating Ministry officials on risk mitigation and the use of insurance as a security tool for MSMES.
“Risk management is not a luxury but a necessity for SMEs striving for long-term success. By adopting a proactive and comprehensive approach to risk management, SMEs can mitigate potential threats, seize opportunities, and enhance their resilience.
“I therefore want to encourage the trainees to fully embrace the skills and knowledge that will be imparted to them today. I urge you to learn and have a deeper understanding of insurance and risk mitigation measures, which I positively believe will enable you to competently train SMEs when you go back to your stations,” she said.
According to Dr Sibanda, the MSMEs sector remains a key component of Zimbabwe’s economy, which is estimated to constitute more than 60% of the economic activity in the country.
MSMEs are found in almost all sectors of the economy, including manufacturing, retailing and transport, mining, energy, construction, and service sectors, among others.
The National Development Strategy (NDS1) has recognised the emergence and unprecedented role played by the MSME sector in contributing not only to employment creation, with the 2021 MSME Survey indicating that the sector employed 4.8 million full-time employees, but also to the nation’s industrial development through the provision of key ancillary products and services to value chains in key economic sectors.
“Although the sector is immensely contributing to the national economy, SMEs continue to face a number of challenges, which include a lack of business management skills, mentorship, coaching, markets, workspace businesses, and financial linkages,” said Dr Sibanda.
The Insurance Council of Zimbabwe (ICZ), working together with the Insurance and Pensions Commission, partnered with the Ministry to offer training to Ministry officials who are involved in training MSMEs throughout the country.
“The Ministry has over the years been providing training to MSMEs on other facets of business, excluding insurance,” she said.
On average, about 35 000 MSMEs are trained on business management and other business-related issues annually, with 40 000 MSMEs having been trained in 2023.
“The training being conducted today is going to empower you to also include insurance and risk management in our training programmes,” she added.
ICZ visited Glenview Home Industry Complex on Tuesday in a fact-finding mission to see how they can work together to mitigate the risk of fires that have become a perennial incident at the complex.
