Practical Advice and Policy Interventions to
Support the Youth, Women Groups and Other Vulnerable
Members of the Society.
SUPPLEMENT TO THE JANUARY 2009 MONETARY POLICY
STATEMENT
By
DR. G. GONO
GOVERNOR
RESERVE BANK OF ZIMBABWE
January, 2009
... TURNING OUR DIFFICULTIES INTO
OPPORTUNITIES.
SURVIVING THE NEW ECONOMIC ENVIRONMENT
Supplement to the January 2009 Monetary Policy Statement

TABLE OF CONTENTS
1.
INTRODUCTION AND BACKGROUND

Role of SMEs in Development

Common Challenges Faced By SMEs

2.
MEASURES TO ADDRESS THE CHALLENGES

3.
EXPERIENCES OF OTHER COUNTRIES IN

PROMOTING SMES

SPECIFIC COUNTRY EXPERIENCES

4.
CONTEXTUAL SME ISSUES IN ZIMBABWE...

The Key Issues

5.
SME DEVELOPMENT IN ZIMBABWE

6.
ENHANCING THE PROVISION OF

FUNDING TO MICROFINANCE SMES

Financial Inclusion Framework

Implementation Strategies

Establishment of Microfinance Banks

Permissible Activities for Microfinance Banks

Other Sources of Financing SMEs to Bolster Micro-Lending in
Foreign Currency

7.
SPECIFIC INTERVENTIONS

8.
CONCLUSION

ANNEX 1: Sectoral Breakdown of Examples of SME Projects
That Qualify for Support

ANNEX 2: Provincial Natural Endowment-Based SME Projects

ANNEX 3: A Survey of Effective SME Technologies

i
Supplement to the January 2009 Monetary Policy Statement

INTRODUCTION AND BACKGROUND
1.
The hyperinflationary environment in Zimbabwe has undermined the low
1.1
income groups, pensioners, and vulnerable groups most of whom live in
the rural areas.
Prices of goods and services have been rising to unprecedented levels,
1.2
reflecting the escalation in production costs, shortages of basic goods and
services, and the adverse effects of parallel market activities. Consequently,
the local currency’s role as a medium of exchange, store of value and
standard for deferred payments has been severely undermined.
To preserve the value of incomes, economic agents preferred to store their
1.3
wealth in foreign currency, particularly the US dollars, South African Rand
and the Botswana Pula among others.

In addition to foreign currency licensed shops, most retailers have been
1.4
charging for their goods and services in foreign currency. Similarly, all
basic commodities, mobile phone tariffs, and even bus fares were also
being charged in foreign currency, before the current introduction of the
expanded foreign exchange shops framework.
Looking at Zimbabwe’s demographics, it is apparent that the bulk of the
1.5
country’s population still lives in the rural areas.
Supplement to the January 2009 Monetary Policy Statement

RURAL AND URBAN POPULATION DEMOGRAPHICS
Province
Urban
Rural
Urban Share
Rural Share
Harare metropolitan
1,896,134

16.1%
0.2%
Bulawayo
metropolitan
676,650

5.8%
0%
Manicaland

Mashonaland
Central

Mashonaland East

Mashonaland West

Matebeleland North

Matebeleland South

Midlands

Masvingo

Total

Note: Women constitute approximately 52% of the population in Zimbabwe.
Source: CSO Census, 2002 National Report
Supplement to the January 2009 Monetary Policy Statement

There is, therefore, a strong and urgent need for macroeconomic policies
1.6
that are responsive to the needs of vulnerable groups, particularly in light
of the multi-currency environment, so that the policy changes take on
board all sectors of the economy.
Role of SMEs in Development
The role of SMEs has evolved increasingly, accounting for a greater share
1.7
of economic activity and wealth creation in many countries worldwide.

In Africa and the world over, SMEs contribute very significantly in terms
1.8
of employment creation and growth.
For instance, in Indonesia, SMEs account for 98% of employment
1.9
creation and growth with Japan and Thailand contributing 81% and 78%
respectively.
SMEs are, thus, impeccable engines of economic growth which
1.10
complement the efforts of the private and public sector to enhance the
national development process.
SMEs have provided practical solutions to such challenges as poverty and
1.11
declining household incomes to meet family basics such as food, school
fees, and access to health services, among others.
Supplement to the January 2009 Monetary Policy Statement

Key drivers to consider in the case of nurturing and supporting SMEs
1.12
are their labour intensity nature, capital saving capacity, harnessing of
local resource endowments and reliance on fewer imports, flexibility and
adaptability, innovativeness and strong linkages with other sectors of the
economy.
The high level of adaptability also makes it easy for SMEs to thrive in
1.13
any environment, hence they become an appropriate business model to
promote rural development which will decelerate rural-urban migration
that is currently giving headaches to many governments in the world.
Reflecting the sector’s central role, SMEs represent over 95% of enterprises
1.14
in most Organization for Economic Corporation and Development
countries (OECD)1 and generate over 50% of private sector employment.
Governments, therefore continue to apply an array of policies and
programs to promote entrepreneurship and boost development of SMEs.
These programs generally aim to alleviate the challenges faced by SMEs
and seek to identify and implement best practice policies.
Common Challenges Faced By SMEs

The SMEs sector, while playing a critical role in economic growth and
1.15
development, is confronted with a number of challenges which include
the following:
Access to finance remains the critical challenge facing SMEs
(i)
worldwide. Accessibility and availability of finance is very limited,
as the majority of SMEs are owner capitalized;
Supplement to the January 2009 Monetary Policy Statement

Limited access to finance is a major obstacle to development of
(ii)
SMEs in Africa. Their inherent higher perceived risk and lack of
collateral make financial institutions reluctant to lend them;
SMEs also lack the capacity to conduct research and development
(iii)
needed to commercialize ideas and grow businesses;
Weak business structures;
(iv)
Poorly defined legal and regulatory frameworks;
(v)
Poor marketing channels;
(vi)
Difficulties in adapting to environmental changes;
(vii)
Insufficient management resources; finance, Human Resources
(viii)
and technology; and
Absence of supportive institutional structures.
(ix)
MEASURES TO ADDRESS THE CHALLENGES
2.

In view of the challenges faced by SMEs, it is imperative that tailor-made
2.1
support be given to this critical sector. Effective interventions include the
provision of financial support and entrepreneurial development training,
as well as mentorship frameworks.
Financial Support include the following
2.2
:
Diverse credit finance (loan programs);
•
Equity finance;
•
Credit Guarantee Schemes for SMEs; and
•
Tax breaks for SMEs
•
Supplement to the January 2009 Monetary Policy Statement

Under entrepreneurial and management support, the following are the
2.3
main areas that need intervention;
Start up business support;
•
Business diversification support;
•
Strengthening of management base;
•
SME turnaround support, and
•
Mentorship programmes and sub-contracting by bigger
•
corporates.
EXPERIENCES OF OTHER COUNTRIES IN
3.
PROMOTING SMES

Findings from empirical studies on the role of SMEs in economic
3.1
development in a number of countries have revealed the following:-
The financial sector has a major role to play in the creation and
(i)
delivery of practical solutions to the challenges of sustainable
development.
The SME and microfinance sectors have to be supported –
(ii)
financially and technically - to become part of the formal economy
which will play a crucial role in the deepening of the financial
sector and mobilization of financial resources.

Bangladesh, Uganda,India,South Korea, Malaysia and the Philippines
3.2
provide exciting empirical evidence as on the microfinance revolution as a
development intervention. Public-private partnerships (PPP) are valuable
mechanisms for developing practical responses to African challenges.

Supplement to the January 2009 Monetary Policy Statement

Access to financial services
(iii)
is necessary to address problems
faced by SMEs.
Capacity building
(iv)
in the SME sector by banks is necessary to
ensure long term business planning and management.
SPECIFIC COUNTRY EXPERIENCES
The Nigerian Central Bank has increasingly exercised its power as a
3.3
regulator in line with internationally accepted norms and has been at the
forefront on influential programs such as the Small and Medium Industry
Equity Investment Scheme (SMIEIS) aimed at boosting equity investment
in SMEs.
Since 2001, all Nigerian based banks have been mandated by the SMIEIS
3.4
to set aside 10% of the pre-tax profits to finance SMEs. Funds are invested
as equity, either as a cash injection or conversion of existing debts owed
to participating banks.
In South Africa, a partnership between ABSA, First National Bank,
3.5
Nedbank Group and Standard Bank and the Government was initiated in
2003 to develop low cost transaction accounts, enabling the banks to cover
at least 70% of the un-banked market (low income group) in a relatively
short time.
Japan’s SME policy was structured in 3 phases as follows:
3.6
Reconstruction period;
(v)
High growth;
(vi)
Stable growth period.
(vii)
Supplement to the January 2009 Monetary Policy Statement

The Reconstruction period saw the establishment of Government financial
3.7
institutions for SMEs, credit insurance system, formation of SME business
associations such as the Chamber of Commerce and Industry.
The high growth period was aimed at upgrading the structure and
3.8
improving the productivity of SMEs through the enhancement of facilities
and promotion of subcontractor SME’s as well as support measures for
start ups, new businesses and business innovation.
The Stable Growth period was geared towards fostering the diverse and
3.9
vigorous growth of independent SME’s and meeting the demands of the
global economy.
The Canadian Government offers financing programs to support the
3.10
creation and growth of SMEs through a loan guarantee program and state
owned financial institutions.
The range of financial services spans from
3.11
:
Traditional term debt financing (5-20 years loans to finance capital
(viii)
assets); and
Provision of pure equity financing through venture capital, among
(ix)
other innovative structures.
China’s SMEs were historically constrained by lack of financial support.
3.12
China, however, recognized that vibrant SMEs are an essential part of
3.13
sustained economic development and worked on improving the operating
environment.
Supplement to the January 2009 Monetary Policy Statement

Consistent with this, the Chinese central government created a network of
3.14
credit guarantee agencies in the late 1990s and tasked the SME Bureau to
oversee them.
China’s growing credit guarantee system was a step in the right direction,
3.15
especially since the banking system’s lending decisions were strictly on a
commercial basis.
The most remarkable aspect of China’s small and medium enterprises
3.16
is their rapid growth despite their inability to tap the official financial
system.
Today, Chinese experts estimate that SMEs are now responsible for about
3.17
60% of China’s industrial output, employing about 75% of the workforce
in China’s cities and towns.
SMEs are responsible for creating most new urban jobs, and they are the
3.18
main destination for workers laid-off from state-owned enterprises (SOEs)
that re-enter the workforce.
Many of the SMEs are private firms, started by enterprising individuals.
3.19
Furthermore, some of the SMEs have moved into market segments once
dominated by state firms.
In New Zealand, the concept of SMEs is also vibrant. The significance of
3.20
the SME sector in New Zealand has, thus, been increasing, with further
opportunities presented by globalisation and technological development.
Supplement to the January 2009 Monetary Policy Statement

Reflecting this significance, SMEs accounted for 29.7% of total
3.21
employment in February 2005, with the number of people employed by
SMEs increasing by 7% between 2004 and 2005.
New Zealand’s SME sector also accounts for quite a significant proportion
3.22
of the country’s output. The SME contribution to output increased from
37.2 % in 2003 to 39% in 2004 accounting for 23.8% in value added
output.
CONTEXTUAL SME ISSUES IN ZIMBABWE...
4.

Whilst in Zimbabwe, Government has made commitment to the full
4.1
development and the full transformation of the SME sector over the
years, there has not been a comprehensive intervention programme that
recognizes the need for our Youths Women and other disadvantaged groups
to be supported in developing entrepreneurial capabilities.
This development, largely a result of resource constraints cannot be
4.2
allowed to remain uncorrected.

A peculiarity worth noting is also that Government nurtures students for
4.3
at least 11 years (7 years in primary school and 4 years at secondary level)
and yet, thereafter, there seems to be limited frameworks that unlock the
wealth invested in those 11 years.
Against this background, the Ministry of SMEs ought to play a very
4.4
strategic role in the development of the sector.
Supplement to the January 2009 Monetary Policy Statement

Support activities ought to range from policy initiatives, technical
4.5
capacity building, and financing among other numerous and significant
interventions, and as the Central Bank, we recommend that Government
sets aside resources for SME development.

It is, however, important to note that a strong institutional framework
4.6
supporting the development of SMEs is already in place in Zimbabwe,
as evidenced by such long-standing institutions as SEDCO, Empretec,
and UNIDO, the ILO arms, among several other institutions currently
providing technical and financial support to the sector. These must now be
reconfigured into tangible activities in support of the SMEs.
The turnaround of the Zimbabwean economy calls for a holistic approach
4.7
building on these existing strengths so as to realize sustained growth and
overall economic performance across the board.
But for the SMEs sector to flourish, there are several key issues which
4.8
must be addressed:
The Key Issues
The financial sector has a major role to play in the creation and
(i)
delivery of practical solutions to the challenges for the achievement
of sustainable development.
The SME and microfinance sectors have to be supported –
(ii)
financially and technically - to become part of the formal economy
which will play a crucial role in the deepening of the financial
sector and mobilization of financial resources.
Supplement to the January 2009 Monetary Policy Statement

Public-private partnerships (PPP) are valuable mechanisms for
(iii)
developing practical responses to African challenges.
Access to financial services is necessary to address problems faced
(iv)
by SMEs.
Capacity building in the SME sector by banks is necessary to
(v)
ensure long term business planning and management.
SME DEVELOPMENT IN ZIMBABWE
5.
The majority of smallholder farmers in Zimbabwe are women. Because
5.1
of lack of support for women in agriculture, output in agricultural sector
(particularly in commercial areas) has remained depressed.
The farmers require subsidies and protection; however, weak fiscal capacity
5.2
has hampered the transfer of adequate amounts to sustain continued
production.
The introduction of new technologies developed in other parts of the world
5.3
e.g. India would improve the agricultural performance of rural Zimbabwe.
The use of simple machines would make the youth, women and other
vulnerable groups more productive and be able to sell their output in
foreign exchange.
Moreover, they can engage in small scale activities utilising the agricultural
5.4
output as inputs in small scale industries.
The marketing of agricultural output is fundamental in the development of
5.5
the rural economies.
Supplement to the January 2009 Monetary Policy Statement

ENHANCING THE PROVISION OF FUNDING TO
6.
MICROFINANCE SMES
Financial Inclusion Framework
It must be noted that while all policy players are expected to play their part
6.1
in ensuring adequate access to financial services, experiences from other
countries indicate that where access to financial services has improved,
Central Banks have taken a pivotal role to foster the development of
inclusive financial systems.
In view of these observations, the Central Bank has taken deliberate policy
6.2
initiatives to render Financial Inclusion a reality to the majority of the
currently marginalized Zimbabweans.
This
6.3
document sets out the Reserve Bank's Framework for Financial
Inclusion, whose objectives include:
ensuring access to basic financial services by all Zimbabweans in
(i)
a sustainable, economically viable manner, through appropriate
institutions, products, services and technology;
promoting economic development, social and economic
(ii)
empowerment of the marginalized communities including rural
and peri-urban communities through improved access to financial
services;
employment creation;
(iii)
breaking the cycles of poverty, currently deeply rooted in rural
(iv)
communities;
Supplement to the January 2009 Monetary Policy Statement

inculcating a savings culture in rural communities; and
(v)
fostering the achievement of the United Nations' Millennium
(vi)
Development Goals (MDG's).
Implementation Strategies
The Reserve Bank's Framework for Financial Inclusion is underpinned by
6.4
the following pillars:
expanding the outreach of established developmental financial
•
institutions such as People's Own Savings Bank (POSB), ZIMPOST
and Agribank;
expanding the outreach of established commercial banks and
•
building societies;
enhancing provision of microfinance services through establishment
•
of microfinance banks (MFI Banks) or Financial Inclusion Centres
(FICs).
urging relevant authorities to ensure provision of adequate
•
infrastructure including roads, telecommunication coverage and
provision of electricity;
provision of appropriate incentives to financial institutions engaged
•
in rural banking; and
engaging other stakeholders to facilitate the provision of other
•
incentives.
In pursuing the objectives of establishment of an inclusive financial system,
6.5
a National Microfinance Policy has been developed, which encompasses
a tiered approach to the regulation and supervision of Microfinance
Institutions (MFIs) as follows:
Supplement to the January 2009 Monetary Policy Statement

Tiered System
Tiers
Institutions
Supervisory
Category
Supervising
Agency
Tiers 1
Banks and
Building societies
Prudential
Supervision
Reserve Bank
Tiers 2
Microfinance
Banks
Prudential
Supervision
Reserve Bank
Tiers 3
Savings and
Credit
Union
Cooperatives
Prudential
supervision
Discretional
Ministry
responsible for
cooperatives
Tiers 4
Microfinance
Institutions
Non-prudential
Supervision
Reserve Bank

Establishment of Microfinance Banks
The Reserve Bank has developed
6.6
Regulatory and Supervisory Guidelines
and Licensing Criteria for the establishment of MFI Banks or FICs in
Zimbabwe.
Existing microfinance institutions and SACCOs intending to convert into
6.7
Microfinance Banks should meet the terms and conditions as enunciated
in the Licensing Criteria for Microfinance Banks.
Supplement to the January 2009 Monetary Policy Statement

Permissible Activities for Microfinance Banks
Microfinance banks may conduct the following activities:
6.8
accept deposits including savings and time deposits;
•
provision of credit facilities;
•
provision of ancillary banking services such as domestic remittance
•
of funds and safe custody, capacity building in areas such as record
keeping and small business management.
provision of payment services such as salary, gratuity and
•
pensions;
maintenance and operation of various types of account with other
•
banks in Zimbabwe;
provision of leasing and hire-purchase facilities;
•
provision of guarantees; and
•
provision of housing microfinance.
•
Other Sources of Financing SMEs to Bolster
Micro-Lending in Foreign Currency
Micro finance institutions should be licensed to lend SMEs in foreign
6.9
currency. In addition, SMEs should also be licensed to charge goods and
services in foreign currency.
This measure will assist SMEs to generate and secure foreign exchange for
6.10
working capital purposes, and increase capacity and generate employment.
This will provide substantial impetus to efforts geared at ensuring the
graduation of SMEs to major exports.
Supplement to the January 2009 Monetary Policy Statement

The financial system should also positively contribute to the development
6.11
of SMEs by providing financial support to SMEs, schools and tertiary
institutions. This will enable these institutions to engage in income
generating projects and enhance self sufficiency in the area of financing.
Symbiotic relationships can also be strengthened between the agriculture
6.12
sector and SMEs through value addition and product beneficiation. In
this context SMEs can also engage in agro-processing to add value to the
country’s agricultural produce.
Prominence should be attached to the engagement of development co6.13
operating partners with a view to secure financial resources for the
development of SMEs and the vulnerable groups.

SPECIFIC INTERVENTIONS
7.
As part of the Reserve Bank’s thrust to ensure that vulnerable groups of
7.1
our society sail the multi-currency environment, the following specific
interventions are being implemented:
Deepening of the rural banking programme through incentives to
(a)
those banks that expand their nationwide branch network;
Licensing of more micro-finance institutions in order to promote
(b)
greater access to capital by SMEs and other vulnerable segments
of the society;
Calling upon all banking institutions to setup and deepen their
(c)
SME management units;
Identification and negotiation of tailor made regional and
(d)
international financial schemes for on lending to the SME sector;
Supplement to the January 2009 Monetary Policy Statement

Engagement of the Reserve Bank in nationwide awareness
(e)
campaigns to ensure that stakeholders are adequately advised on
the implications of the new economic environment and how to
survive under the multi-currency environment; and
Deepening the implementation of greater deregulation in the goods
(f)
and services market. This includes the removal of distortions in the
economy, particularly in respect of the pricing of foreign exchange
and pricing of the agricultural produce. Greater liberalisation
ensures that our farmers are operating viably, which in turn uplifts
rural incomes.
As Monetary Authorities, therefore, we call upon the entire banking sector
7.2
to join the Reserve Bank in ensuring that their internal credit policies play
a supportive role in the development and growth of SMEs.
Households and individuals, across the board must also exercise greater
7.3
vigilance and work to develop their entrepreneurial skills through
engagement in income generating projects, particularly those that
increase the availability of basic goods and services, whilst at the same
time ensuring that the project implementers generate legitimate incomes,
including foreign exchange for their sustenance.
Supplement to the January 2009 Monetary Policy Statement

CONCLUSION
8.
The 2009 National Budget and the Monetary Policy Framework usher in
8.1
a new era of boundless opportunities which companies and individuals
must tap into.
Whilst at first sight, the Fiscal and Monetary Policies may seem to be
8.2
leaving the vulnerable members of the society out in the cold, the various
avenues that have been proposed in this supplement seek to bridge that
gap.
With a more active role by banks and Micro-Lending institutions, the SME
8.3
sector will swell into being the engine of broad - based economic growth
and development.
Success in protecting the vulnerable members of our society also demands
8.4
utmost implementation of Government policy programmes across the
board.
Our utility public enterprises, as well as other producers of basic
8.5
commodities must also rally behind this initiative by investing back into
the community.
As buyer of last resort, the GMB must ensure that it promptly pays farmers
8.6
in foreign exchange as stipulated in the 2009 National Budget.
By way of general advice to stakeholders, the liberalised foreign exchange
8.7
environment calls for a radical shift in the way we allocate resources
among competing ends.
Supplement to the January 2009 Monetary Policy Statement

Specifically, we must evolve ourselves into greater propensities to save,
8.8
which savings pools will make the investments needs of SMEs, the youth,
women groups and other vulnerable members of our community.
As Monetary Authorities, we are confident that through collective efforts,
8.9
the Nation will sail through the current difficulties and emerge much
stronger and prosperous.
DR. G. GONO
GOVERNOR
RESERVE BANK OF ZIMBABWE
January 2009
Supplement to the January 2009 Monetary Policy Statement

ANNEX 1: Sectoral Breakdown of Examples of
SME Projects That Qualify for Support
Sector
Type of Projects which can be supported (MAKING
OF)
Food Processing
Oil expressing
•
Fruit & vegetable drying
•
Peanut butter/jam making
•
Juice making
•
Milk processing,
•
Freezit making
•
Food flavours
•
Honey processing
•
Meat processing
•
Kapenta fishing and processing
•
Grinding mills
•
Mealie – meal
•
Stock feed
•
Other
•
Bakery & Confectionery
Manufacturing
Bread
•
Biscuits
•
Sweets
•
Cakes & scones
•
Other
•
Toiletry Making
Liquid soap
•
Dishwashers
•
Detergents
•
Laundry/bath soap
•
Powdered soap
•
Tooth paste
•
Cosmetics
•
Other
•
Supplement to the January 2009 Monetary Policy Statement

Sector
Type of Projects which can be supported(MARKING OF)
Textile & Garment Production
Cotton processing
•
Yarn spinning
•
Weaving
•
Knitting
•
Crocheting
•
Tie & dye
•
Tailoring
•
Protective Clothing
Uniforms
Corporate wear
Ladies, gents and children’s wear
Embroidery
Linen
Curtains
Other
•
Retailing
Butchery/Abattoir
•
Supermarkets
•
Bottle Stores
•
Tuck shops
•
Flea markets
•
Catering
•
Vegetable vending
•
Other
•
Leather & Rubber
Production
Leather
•
Bags
•
Shoes
•
Jackets
•
Belts
•
Rubber
•
Tyre retreading
•
Other
•
Supplement to the January 2009 Monetary Policy Statement

Sector
Type of Projects which can be Supported
(MAKING OF))
Engineering
Auto
•
Electrical
•
Mechanical
•
Computer Assembly
•
Other
•
Services
Plumbing
•
Jobbing Services
•
Hair and Beauty salon
•
Automobile repairs
•
Painting
•
Tiling
•
Interior Deco
•
Upholstery
•
Gym (Health & fitness)
•
Other
•
Note: Focus will on primary production and value addition as opposed to importing-buying and
trading
Supplement to the January 2009 Monetary Policy Statement

ANNEX 2: Provincial Natural Endowment-Based
SME Projects
Province
Resource Endowment
Potential Projects which
can be Supported
Mashonaland East
Mineral Deposits
Small Scale
Mining/Quarrying
Diversified Crop Farming
Agro-processing
Oil Expressing
Milling
Winery
Leather Products
Agricultural Implements
Dairy and Beef
Milk Processing
Abattoirs
Leather Processing
Mashonaland West
Diversified Crop Farming
Agro-processing
Oil Expressing
Milling
Winery
Leather Products
Agricultural Implements
Mineral Deposits
Small Scale Mining
Tourism
Safari
Supplement to the January 2009 Monetary Policy Statement

Mashonaland Central
Diversified Crop Farming
Agro-processing
Oil Expressing
Milling
Winery
Leather Products
Agricultural Implements
Mineral Deposits
Small Scale
Midlands
Crop Farming (Cotton)
Agro-processing
Oil Expressing
Stock Feed Manufacturing
Textile & Garments
Dairy
Milk Processing
Manicaland
Forestry Plantations
Paper Processing
Wood Processing
Furniture Manufacturing
Fruit & Vegetable
Processing
Mineral Deposists
Small Scale Mining
Supplement to the January 2009 Monetary Policy Statement

Province
Resource
Endowment
Potential Projects which can be
Supported
Masvingo
Tourism
Mineral Deposits
Arts & Sculpture
•
Textile & Garments
•
Lodges
•
Travel & Tourism
•
Small Scale Mining
•
Matabeleland North
Cattle Ranching
Tourism
Abattoir
•
Milk Processing
•
Beef Processing/Canning
•
Leather Processing
•
Hunting & Safari
•
Travel & Tourism
•
Lodges
•
Arts & Sculpture
•
Matabeleland South
Cattle Ranching
Mineral Deposits
Abattoir
•
Milk Processing
•
Beef Processing/Canning
•
Leather Processing
•
Small Scale Mining/
•
Processing
•
Supplement to the January 2009 Monetary Policy Statement

ANNEX 3: A Survey of Effective SME Technologies
Below is a synopsis of brief discussions of technology that can be used by
Zimbabwean SMEs in the production of the various products.
Exercise Book Making Machine
This machine makes exercise books, register and other stationery items
for schools, offices, colleges and universities.
Benefits:
Availability of text books in schools.
•
Decentralization of the production of school material.
•
Schools could produce their own books and sell in school shops.
•
Parents at the school could be engaged to assist in book making
•
projects at the school.
Older children at high school could work in practical subjects
•
teaching the art of book making
Employment creation
•
Import substitution
•
Nail/Screw Making Machine
This machine produces various sizes and types lengths and thickness of
nails and screws and is very simple to operate.
Supplement to the January 2009 Monetary Policy Statement

Benefits:
Locally available raw materials
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Flexible
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Increases locally produced nails and screws to take care of high
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construction initiatives in the housing and construction sectors.
Dampening inflationary pressures triggered by the construction
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sector
Supplement to the January 2009 Monetary Policy Statement

Bath & Laundry Soap & Washing Powder Machines
This soap machine (3 in 1) makes bars and fancy soaps and
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glycerine soap & wax, candles and chalk
Benefits:
Product availability
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Import substitution
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Machine easy to operate
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Economies of scale and scope
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Employment creation and price stability
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Supplement to the January 2009 Monetary Policy Statement

Toilet Roll Making Machines
High Speed Toilet Roll Making Machine with Auto core Loading & Self Gluing
Objective
Increasing availability of toilet tissues to all marginalized areas at
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affordable prices and ensuring self sufficiency.
Advantages of the Machine
The machine can make a combination of roller towels, garage &
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hospital wipes & disposable towels
Makes 25 to 80 rolls per minute*
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. (Depends on model & operating
speed)
Jumbo production tissue rolls easily available.
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Low electricity consumption.
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Low maintenance
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Supplement to the January 2009 Monetary Policy Statement

Easy to operate - Learn in an hour how to work machine.
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Requires 1 to 2 operators.
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Machines able to operate 24 hours
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Its easier than you can imagine
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Cheaper toilet rolls are needed.
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Make up to *40000 rolls per day
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Benefits
Employment creation
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Empowering the marginalized, women and youth
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Demand available daily
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Incredible profit potential
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Raw materials
Sawdust, husk, organic waste, wood, tree stumps and many other
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wastes, readily available from Border Timber and other timber
sawmills.
Market
Factories, Hospitals, Prisons, Chemists, Shops, Hawkers, Cleaning
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companies, general public, Schools, Big buildings, Big companies
etc.
Supplement to the January 2009 Monetary Policy Statement

Block and Paving Machine
Objective
To boost the construction industry in line with the United Nations
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Millennium Development Goal of proving decent and affordable
accommodation to all people.
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Advantages of the Machine
Compact floor space
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Easy handling
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Low cost of maintenance
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Low capital investments
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Supplement to the January 2009 Monetary Policy Statement

Robust / Long-life
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Incredible profit potential
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Highly flexible capacity
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Electric, Diesel or Manual
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Portable & Fixed Model
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System designed to use less cement so they reduce brick weight.
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Designed to operate 24 hours
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Benefits
Employment creation
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Empowering the marginalized, women and youth
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Building materials, particularly bricks, are in high demand nationally,
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and therefore set to benefit the local building communities, as we
strive to meet the housing for all campaign
Incredible profit potential
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Import substitution
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Raw materials
Cement
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Water
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Colour powder
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Supplement to the January 2009 Monetary Policy Statement

Market
Local communities,
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Building and paving contractors,
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Public contractors
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Private developers
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Roof Sheet Machines


Supplement to the January 2009 Monetary Policy Statement

Various Models

Objective;
To boost the construction industry in line with the United Nations
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Millennium Development Goal of proving decent and affordable
accommodation to all people.
Advantages of the Machine
Incredible Profit Potential
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Make many, many designs sheets or tiles.
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Works on a roll forming system.
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Plant will fit into a 40Ft container
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5 Ton rolls (25 rolls in 20ft container) (various colours available)
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Benefits
Employment creation
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Empowering the marginalized, women and youth
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Incredible profit potential
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Supplement to the January 2009 Monetary Policy Statement

Raw materials
Asbestos
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Iron
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Hardened Plastic
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Cement
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Colour coated steel
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Market
Local communities,
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Building and paving contractors,
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Public contractors
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Private developers
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Supplement to the January 2009 Monetary Policy Statement

Bakery Equipment
Bakery Ovens in various sizes
Supplement to the January 2009 Monetary Policy Statement

Objectives
To ensure availability of bread to all people in the
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marginalized areas
Supplement to the January 2009 Monetary Policy Statement

Advantages of the Oven Machines
Compact floor space
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Easy handling due to user friendly controls
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Low cost of maintenance
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Low capital investments with max production
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Highly flexible
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High capacity
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Millions of bread rolls, cakes, etc are sold every day.
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Areas where electricity is not freely available - the manual mixer
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& (gas) oven & proofer is ideal.
Benefits
Employment creation
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Empowering the marginalized, women and youth
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Millions of bread rolls, cakes, etc are sold every day.
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Incredible profit potential
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Raw materials
Flour
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yeast
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water
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sugar
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salt
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Supplement to the January 2009 Monetary Policy Statement

Market
Local communities,
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Supermarkets
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Hotels and restaurants
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Schools, crèches, and universities
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Hospitals and other government institutions.
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Wire Mesh Machine
Supplement to the January 2009 Monetary Policy Statement

Wire Chain Link Fencing Machine
Wire Wearing Machine
Supplement to the January 2009 Monetary Policy Statement

Barbed Wire Machine
Hexagonal Wire Making machine
Supplement to the January 2009 Monetary Policy Statement

Advantages of the Fence-making Machines
Compact floor space
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Easy handling due to user friendly controls
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Low cost of maintenance
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Low capital investments with max production
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Highly flexible
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High capacity
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Benefits
Employment creation
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Empowering the marginalized, women and youth
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Demarcation of farms, homesteads and gardens, poultry, rabbit
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runs
Raw materials
Extruded Wire
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Market
Local communities,
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Farms
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Homesteads
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Company premises
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Supplement to the January 2009 Monetary Policy Statement

Recycling Plant for Waste Tyres
Objectives
Zimbabwe is currently experience a shortage of tyres due to unavailability
of raw materials. Against this backdrop, the construction of recycling
plants for waste tyres will greatly improve the situation
Supplement to the January 2009 Monetary Policy Statement

Benefits
Crushed waste is Suitable For:
Sports Grounds, Tennis Courts, Track, Riding Facilities,
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Playgrounds
Road Construction – Reduce driving noises and to minimize cracks
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and holes
Part of the recycled waste tyre granulate is used to produce new
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tyres.
Moulded articles for use in family households and in Industry
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used in the car industry as insulating material or in the form of
moulded articles for ventilation systems and seats
Footwear – Sole
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Mats – Vibration damper Sound Insulation
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Stables - Floor Coverings
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Supplement to the January 2009 Monetary Policy Statement

Raw materials
Used tyres
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Electricity
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Water
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Market
Tyre dealers
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Local Authorities
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Plastic Bottle Moulding Machine
Plastic Blowing Machine


Supplement to the January 2009 Monetary Policy Statement

Objective
To avert the current shortages of water, juice, oils, lubricants
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packaging material
Advantages of the Machine
Low Electricity use +/-9Kw p/Hr Auto Control PLC
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Revolving infrared pre-heat system, it ensures pet performs be
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heated evenly.
Machine uses mechanical-double arm mould clamping which
ensures the mould be closed tightly even under high pressure and
high temperature and operates silently.
Machine is suitable to produce differently shaped bottles.
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Produce bottles for: mineral water, carbonated soft drink, juice,
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medical, cosmetic, oil, detergent, shampoo & hot filling bottles.
Steady high pressure to blow large irregular shape bottles
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Wide mouth jar/bottles can also be made.
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Make bottles from size *100ml to *6000 ml including 2Lt to 5lt
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Free 2 Cavity Mould (2 bottle in one)
Benefits
Cheap availability of plastic bottles
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Supplement to the January 2009 Monetary Policy Statement

Raw materials
Plastic
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Water
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Market
Beverage manufacturers
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Pharmacies
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Oil companies
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Water packaging companies
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Hand made tiles
The manufacture of hand made tiles requires only rudimentary implements
including the following:
mild steel,
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outer frame,
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inner design frame,
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glass pane,
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trowel,
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shovels,
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sieve for the sand.
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Supplement to the January 2009 Monetary Policy Statement

There is also an artistic skill passed from generation to generation and
this clearly shows on the consistency of the colours and the matching
combinations especially for people in remote parts of the country, with no
access to computerized designs.
Raw Materials
Sand which has the required qualities,
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Cement, and
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Colouring agent.
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Dry Flowers
Technology
The process of the production of dry flowers uses simple technology
consisting of the following:
colouring tanks which are fabricated out of steel,
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simple lifting devices,
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green houses for drying,
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plastic containers for bleaching, and
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solar energy for heating water for dyeing.
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Supplement to the January 2009 Monetary Policy Statement

Raw Materials
Raw materials are collected through the informal and traditional
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sectors of the economy, and
Plant species which grow in the wild and can be replenished
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easily.
It is estimated that 20% of the raw materials used are cultivated
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and 80% are collected from the wild as agricultural waste.
The procurement can be from established network of farmers who
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serve as gatherers and sometimes who also grow. Some collection
agents can also be used.
Fruit Juices Extractor
A fruit juice extractor displayed at the CFTRI Engineering Department showroom
Supplement to the January 2009 Monetary Policy Statement

The machine is used to extract juices from fruits and vegetables.
Mini Dhal Mill Machine
The Mini Dhal Mill machine which may be hand, diesel and electricity operated.
It is used for dehulling and crashing grains into different sizes.
Supplement to the January 2009 Monetary Policy Statement

Milk Processing Machine
Pipes for the milk processing machine done at Goma Engineering
Cosmetics and related products
The technology shown below produces ddetergent cake (laundry soap),
bathing soap, shampoo, air freshener and tooth paste.
Technology
Equipment used in the manufacturing of the products includes:
a mixer,
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floater, and
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ploader.
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Supplement to the January 2009 Monetary Policy Statement

Soap ingredient mixer
Removal of lumps from detergent wax
Supplement to the January 2009 Monetary Policy Statement

Hand made Paper and Board
The Hand made Paper and Board machinery produces a range of products
including:
envelopes,
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gift wrappers,
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hand bags,
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boxes, and
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picture frames.
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Technology
Machines used in the whole production chain include;
Waste cloth pulping,
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Pulp setting sieves,
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Pulp pressing,
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Guillotines, and
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Embroidery
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Supplement to the January 2009 Monetary Policy Statement

Pulping of the cloth
The pulp is then fed into rectangular fiber seave.
Supplement to the January 2009 Monetary Policy Statement

The sheets are then compressed to remove water.
Raw materials
waste pieces of cloths
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A variety of dyes are used to add value to the paper produced.
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