India to invest $4 million in Zimbabwe SMEs

Published: 11 September 2017

INDIAN companies are set to invest $3,9 million towards supporting Small to Medium Enterprises, as part of efforts to forge co-operation with local businesses and creating avenues to markets for their products and services.

The latest development comes after Small and Medium Enterprises and Cooperative Development Minister Stembiso Nyoni led a delegation of local companies to India as part of a follow up on deals for the SMEs.

Minister Nyoni met Integrated Association of Micro, Small and Medium Enterprises of India (I Am SME of India) in August with the Indians expressing interest in investing in mining, agriculture, pharmaceuticals, horticulture and clothing.

Indian SMEs contribute more than 37 percent to their country's GDP. Minister Nyoni told The Herald Business that partnerships between Indian firms and Zimbabwean SMEs would help the latter with financing and market access.

"I led a delegation to India from August 23 to 27 to do a follow up a visit on Indo-Zimbabwe technology centre investments signed years ago and they agreed to a $2,9 million capital injection on the centres.

"Another $1 million investment will be injected in incubation centres across the country and this is expected to take shape before the year end. "The Indian delegation is coming this month end to start setting up some incubators across all the provinces," said Minister Nyoni.

Some regional countries' SMEs have started sending their small business and cooperatives to Indo-Zimbabwe Technology Centres and incubation centres in Zimbabwe to further their training.

She said besides developmental capital, SMEs could collaborate and put together their resources to form a formidable businesses, which can meaningfully contribute to the fiscus.

Indian investors have expressed willingness to explore opportunities in manufacturing, to promote objectives of Statutory Instrument 64 of 2016, through provision of funding to grow critical resources needed by the industry.

The Asian country also wants dialogue with local business people to form partnerships in other profitable ventures. Several Indian companies also expressed interest in adding value to agricultural and mining commodities.

India has established an incubation centre for SMEs, as part of efforts to nurture and provide the necessary training for small businesses. Experts say local businesses could tap into the Indian market, which has over one billion people and the world's sixth-largest economy, is targeting to be ranked third by 2025.
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