Reference 1. Business Environment in Tajikistan through the Eyes of Small and Medium Enterprises: 2. National Development Strategy of the Republic of Tajikistan for the period up to 2030. [Electronic resource]. – Access mode: https://medt.tj/documents/main/strategic_national_programm/strategic_nationa l_prog_tj.pdf 3. Situation of Socio- economic status of the Republic of Tajikistan period (janyar-december 2022); 4. Law Of The Republic Of Tajikistan About State Protection And Support Entrepreneurship 5. (as amended by the Law of the Republic of Tajikistan dated March 18, 2015 No. 1194, dated May 30, 2017 No. 1436, dated January 2, 2020 No. 1684) 148
EXPANDING PRODUCTION AND PROCESSING OF COTTON IN GHANA: THE VOLTA CASE Ms Belinda Emefa Degboe, District Budget Analyst, ACCRA, Ghana Email: [email protected] , Phone: +233249038825 1. Introduction The production and processing of cotton in Africa dates back to the origin of mankind (the African) as it needs to satisfy one major human need as later postulated by Abraham Maslow Heirachy of needs. Man still needs to cloth himself and clothing remains a critical human need. Later in history, the colonial administrations in Africa engineered the production of cotton to feed the Industries in the West. The objective of this presentation is to outline the possibilities of exploration and exploitation of the opportunities for production and processing of cotton in the Volta Region of Ghana of West Africa. 2. Production of Cotton in Africa and Ghana In the post-colonial era, cotton remains one of the cherished cash crops in Africa and Ghana. Cotton is cultivated in a number of African countries, namely…Benin, central Africa Republic, Chad, Niger,Nigeria,Abidjan, Senegaland and Togo. Table One: production of Cotton in Africa No Name of Country Sub-Re gion Annual productio n volume Trade partner(s) 1 Ghana “ 480,000tn Germany,Indonesia, czechia, Serbia 2 Benin “ 700000tn Bangladesh, China, Egypt, Vietnam, Pakistan 149
3 Burkina Faso “ 482,000tn Switzerland, USA, China, Pakistan 4 Ghana “ 480,000tn Germany,Indonesia, czechia, Serbia 5 Cameroon 350000tn Vietnam, Turkey, Burkina Faso, China, India. In Ghana, cotton is cultivated for both local and industrial processing. The table below shows the current production centers in Ghana. Table Two: Production of Cotton in Ghana No Name of Community Region Annual production volume Trade partner(s) 1 Savana Savana 24,000tn Local: textiles ghltd, Akosombo indus.ltd, printed, key textiles 2 Upper West Upper West 10,000tn 3 Upper east Upper East 8,000tn 4 Affram plians Greater accra 20,000tn Juapong textiles 5 Oti/volta Volta/Oti 10,000tn Juapong textiles From the foregoing, we may note that the potential to expand production, processing and marketing of cotton in Ghana remains high and all interested and potential investors are invited to participate. 150
3. The Volta Case As you may be aware, the Germans who first came into contact with the original/traditional people of Torgo of West Africa. The Germans who entered Torgo as trade partners supported the natives for cultivation and marketing of cotton as one of the major agricultural cash crops. The Torgo as the result of the world wars and after the 2 nd world war was divided into 2 separate entities under the trusteeships of France and Great Britain. Eastern Togoland under the French trusteeship is currently the republic of Togo while the Western Togoland under the British trusteeship is currently the Volta Region of Ghana. It must be noted that the original Western Togoland extended from the western south of the republic of Ghana through to the western north of the former Northern Region of Ghana covering Yendi, volta and the current Oti Region which was part of the Volta Region from Ghana’s independence in 1957 until its creation in may 2019.This largely suggest that cotton can be cultivated in any part of Oti and Volta but predominantly in the north west part of the Volta Region. The matrix below shows the potentials and possibilities for exploration and exploitation of Cotton and its value chain in Ghana and Volta as the center of attraction. Establishment- with the availability of arable land, it is very easy and convenient to establish a Cotton Plantation. There is also access to water, knowledgeable skilled and enthusiastic labor force and overall cost of production. Specific state support- Remarks- The government of Ghana has invested US$2.1 million to develop a cotton farming facility to educate and assist growers in areas such as land preparation and the proper use of seeds,chemicals and fertilizers and also established a US$ 1.5 million subsidy on fertilizer and chemicals 151
The causes of decline in production of cotton in ghana include v Use of local or inferior seeds that brings poor harvest. v Unstable pricing of cotton in the world market leading to the decline of revenue for farmers v The use of traditional farming methods v Lack of ready markets Recommendations to improve production of cotton in Ghana v planting improved seeds v Subsidizing farm inputs for cotton farmers so to help them reduce cost and being able to compete on the world market v Train farmers to enable them use new technologies in farming process v Link up farmers with the textile industries. 152
The Crucial Role of Branding and Marketing for SMEs: Challenges and Opportunities in Tajikistan Mr. Farhod Sharipov, Leading Specialist of the Executive Body of the Dushanbe City, Tajikistan TJK Email: [email protected], Phone: +992 937610002 1. Introduction (SMEs): Small and Medium-sized Enterprises (SMEs) are the backbone of Tajikistan's economy, contributing significantly to its growth and development. Over the last two decades, the government has recognized the importance of SMEs, making efforts to support their development. However, these enterprises still face numerous challenges. This article explores the role of marketing and branding for SMEs in Tajikistan, emphasizing the need for strategic interventions to overcome the hurdles they encounter. 2. Role of Marketing and Branding in Business: Marketing and branding are the cornerstones of any successful business. For SMEs, they are even more critical. Marketing enables SMEs to connect with their target audience, communicate their unique value propositions, and establish a strong market presence. On the other hand, branding helps create a distinct identity, build trust, and foster customer loyalty. In Tajikistan, harnessing the power of marketing and branding is essential for SMEs to expand their reach, differentiate themselves, and compete effectively. 3. Challenges: SMEs in Tajikistan grapple with a range of challenges that hinder their growth and competitiveness: Limited Resources: Many SMEs face constraints in terms of financial and human resources, which limit their ability to invest in marketing and branding initiatives. Access to International Markets: Expanding into international markets can be complex due to regulatory, logistical, and cultural differences. Technological Gaps: SMEs often lack the technical expertise to keep up with rapidly 153
evolving digital marketing trends. Intense Competition: Competition, both domestically and internationally, poses a significant obstacle for SMEs trying to carve out a niche. 4. Current Scenarios in Sales and Marketing in Tajikistan: As of 2020, Tajikistan's private sector accounted for approximately 30% of the country's GDP, a figure considerably lower than the 50-60% range seen in many developed countries. Within this sector, SMEs played a vital role, providing employment opportunities for around 35% of the population. However, they grappled with several challenges, including limited access to resources, inadequate technological infrastructure, and competition from larger enterprises. 5. Proposed Solutions to Mitigate Challenges in Marketing and Branding: To address these challenges and enhance SMEs' marketing and branding capabilities in Tajikistan, several strategies and interventions can be considered: Capacity Building: Government and non-governmental organizations can offer comprehensive training programs and workshops to equip SME owners and employees with essential marketing skills. Mentoring Programs: Establish mentorship programs where experienced business leaders guide SMEs in crafting effective marketing strategies. Government Support: The government can provide financial incentives, tax breaks, and streamlined regulations to encourage SMEs to invest in marketing and branding. Digital Transformation: Encourage SMEs to embrace digital marketing techniques, which can significantly reduce marketing costs and enhance reach. Export Promotion: The government should facilitate access to international markets through trade agreements and diplomatic efforts. 6. Expected Outcome Implementing these interventions is expected to yield positive outcomes for Tajikistan's 154
SMEs. With improved marketing and branding capabilities, these businesses can anticipate: Increased Market Presence: SMEs can expand their market reach, both domestically and internationally, through effective marketing strategies. Enhanced Competitiveness: A strong brand image and marketing prowess can help SMEs stand out in crowded markets, allowing them to compete more effectively. Economic Growth: The collective success of SMEs can contribute significantly to Tajikistan's economic development, leading to increased GDP and job creation. Resilience: SMEs equipped with digital marketing skills can better weather economic uncertainties and adapt to changing market conditions. 7. Crafting Effective Marketing and Branding Strategies for SMEs in Tajikistan: In Tajikistan's evolving business landscape, SMEs need tailored marketing and branding strategies to effectively position themselves and thrive. Here's a strategic framework to navigate the unique challenges faced by SMEs in Tajikistan: Market Research and Segmentation: Conduct comprehensive market research to understand consumer behaviors, preferences, and emerging trends. Segmentation helps target specific customer segments with tailored marketing approaches. Value Proposition and Differentiation: Clearly define the unique value that your SME offers. Highlight what sets your products or services apart from competitors, emphasizing quality, affordability, or innovation. Online Presence and Digital Marketing: Establish a strong online presence through a professional website and active engagement on social media platforms. Leverage digital marketing tools like search engine optimization (SEO), email marketing, and content marketing to reach a broader audience cost-effectively. Collaborations and Networking: Collaborate with other local SMEs, industry associations, or chambers of commerce. Networking can open up new marketing channels, partnerships, and collective promotional opportunities. 155
Customer Relationship Management (CRM) : Implement a CRM system to manage customer interactions and enhance customer satisfaction. Happy customers can become brand advocates and contribute to word-of-mouth marketing. Localized Marketing Approach: Tailor marketing efforts to suit Tajikistan's diverse cultural and linguistic landscape. Utilize local languages, traditions, and cultural events in marketing campaigns to resonate with the target audience. Leverage Government Initiatives: Utilize government programs and initiatives that support SMEs in marketing and branding efforts. Stay informed about available grants, subsidies, or training programs to enhance marketing capabilities. Customer Feedback and Adaptation: Continuously seek feedback from customers to understand their changing needs and preferences. Adapt marketing and branding strategies accordingly to stay relevant and appealing to the target audience. Invest in Employee Training: Ensure that employees are well-trained in marketing techniques, customer service, and product knowledge. An informed and skilled workforce can significantly impact the success of marketing campaigns. Monitor and Evaluate Performance: Regularly monitor the performance of marketing initiatives using key performance indicators (KPIs). Analyze the data and adjust strategies to optimize results and return on investment (ROI). By adopting a strategic and adaptive approach to marketing and branding, Tajikistan's SMEs can enhance their visibility, engage with their audience, and ultimately drive business growth. Tailoring strategies to suit the specific needs and market dynamics of Tajikistan will position SMEs for success in both local and international markets. In conclusion, SMEs are crucial to Tajikistan's economic development, and their growth hinges on effective marketing and branding strategies. By addressing the challenges they face and implementing targeted interventions, Tajikistan can look forward to a brighter economic future driven by its vibrant SME sector. The insights gained from ni-msme can further empower these businesses to thrive in an increasingly competitive global landscape. 156
Development of Solar Energy for Energy Self-Sufficiency in the Tillabéri Region, Niger Mr. Karim Aoudou Aboubacar Assistant Director, Ministry of Promotion of Women, SONARA 2 NIAMEY, Niger E.mail: [email protected] , Phone : +227 96 73 25 025 The project aims to provide a source of clean, reliable and affordable energy in the Tillabéri region, thus contributing to local socio-economic development and improving the living conditions of rural communities. Project description: Solar Resources Assessment conduct an in-depth study to assess the solar potential of the Tillabéri region in order to determine the optimal location for the installation of solar panels. Installation of Solar: Install photovoltaic solar panels in selected areas, starting with schools, health centers and community facilities. Training and Awareness: Organize training sessions for members of the local community on the use and maintenance of solar systems, as well as the benefits of solar energy. 157
Construction of a Maintenance Center: Establish a local maintenance center to ensure the sustainability of solar installations and create jobs for local residents. Public-Private Partnerships: Collaborate with local businesses and private partners to finance, construct and manage solar installations. Economic Integration: Encourage the use of solar energy to power local economic activities such as small businesses, production workshops and agricultural irrigation pumps. Monitoring and Evaluation: Establish a monitoring system to monitor energy production, community satisfaction and impact on local development. Community Awareness: Organize regular awareness campaigns to promote the adoption of solar energy and encourage community participation. Estimated Budget: Solar Panel Installation Cost: - Purchase of solar panels: 90,000,000 XOF - Assembly infrastructure: 30,000,000 XOF - Wiring and conversion equipment: 18,000,000 XOF - Labor and installation: 42,000,000 XOF - Total installation costs: 180,000,000 XOF Training and Awareness Cost: - Training sessions: 12,000,000 XOF - Educational material: 3,000,000 XOF - Awareness campaigns: 9,000,000 XOF - Total training and awareness costs: 24,000,000 XOF 158
Construction of the Maintenance Center: - Construction of the building: 48,000,000 XOF - Maintenance equipment: 12,000,000 XOF - Construction labor: 18,000,000 XOF - Total construction costs of the center: 78,000,000 XOF Monitoring and Evaluation Cost: - Tracking tools: 6,000,000 XOF - Staff dedicated to monitoring (for the first year): 18,000,000 XOF - Total monitoring and evaluation costs (for the first year): 24,000,000 XOF Administrative and Logistics Cost: - Project management fees: 15,000,000 XOF - Logistics and travel: 9,000,000 XOF - Total administrative and logistical costs: 24,000,000 XOF Total Project Cost: 330,000,000 XOF Funding: National Government Subsidy : 150,000,000 XOF - Request funding from the national government of Niger to support the project due to its positive impact on the Tillabéri region. Private Investment (Public-Private Partnership) 120,000,000 XOF - Establish a partnership with a private company specializing in renewable energy which will invest in the project in exchange for future profits from solar energy production. Funding of Foundations and Philanthropic Organizations : 60,000,000 XOF - Search for international foundations, NGOs and philanthropic organizations that support renewable energy projects and can contribute funding. 159
Total Financing: 330,000,000 XOF Project Schedule: S.No Activity 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Planning and Preparation Phase: 1 Assessment of region's solar resources 2 Establishment of the detailed project plan. 3 Research and identification of potential partners. Solar Panel Installation Phase: 4 Purchase of solar panels and mounting infrastructure. 5 Installation of the first solar systems in selected schools. Training and Awareness Phase: 160
6 Start of training sessions for community members. 7 Launch of awareness campaigns. Maintenance Center Construction Phase: 8 Construction of the maintenance center building. 9 Acquisition of maintenance equipment. Solar Panel Installation Phase (continued): 10 Continued installation of solar systems in other community facilities Economic Integration Phase: 11 Promotion of the use of solar energy for local economic activities. 161
12 Support for small businesses related to solar energy. Monitoring and Evaluation Phase: 13 Establishment of a monitoring system for energy production. 14 Assessment of community satisfaction. 15 Adjustments based on results Community Awareness Phase (Ongoing): 16 Ongoing campaigns to promote the adoption of solar energy 17 Strengthening community participation and Making renewable energy more accessible in Village 162
Entrepreneurship Quality and Rural Entrepreneur Development in Republic of Tajikistan Mr. Latipov Bakhtovar, Leading Specialist Department of Economics Finance and Forecasting, Office of the Chairman of the city of Dushanbe, Tajikistan [email protected], +992 909-01-97-97 Abstract The Government of the Republic of Tajikistan has implemented various policies and initiatives for rural development. Entrepreneurs, since a large number of the republic’s population lives in rural areas and the center of economic growth has been created in rural areas starting from the years of independence of the Republic of Tajikistan in 1991. The goals of developing economic growth are marginalized areas and redistribute rural incomes in tandem with progress made in urban environments. Therefore, this article discusses the role of the Southwestern Development Authority as an economic development region for rural entrepreneurs. The article initially talks about rural entrepreneurs and area of economic development and also talks about this sector. In addition, The article also discusses the quality of entrepreneurship, indicators and determinants entrepreneurial success. Finally, the articles discuss the program, the development of rural entrepreneurship. The article summarizes the role and advantages of centers of economic growth in such territories as Sughd and Khatlon regions as developing rural entrepreneurs. Key words: rural entrepreneur, regional development, economic development, 163
Introduction Total Population: 10,563,200 Natural Increase: 2.2% Density: 63 Inhabitants/km² Urban Population: 26.9% Ethnic Origins: About 80% Tajik, 15% Uzbek, 1% Russian, 1% Kyrgyz and 2.6% other ethnic origin. Official Language: Tajik Religion: Sunni Muslim 85%, Shi'a Muslim 5%, Others 10%. Literacy Rate: 99.5% Government of the Republic of Tajikistan to implement various policies and initiatives for rural development. The government launched the Master Plan for the Development of Small and Medium Businesses and adopted a number of regulatory legal documents for 2020-2022. Such as “Protection and state support of entrepreneurs” and provide direction and focus on creating quality, sustainable and competitive entrepreneurs who able to compete with foreign enterprises. Various business support and Entrepreneurship development programs such as business finance, entrepreneurship training, product marketing, product development and branding, construction of small and medium industrial commercial premises and factories are carried out by various agencies at the central level of regions throughout the country. However, success will only be achieved if mature SME entrepreneurs have an entrepreneurially oriented personality and mindset such as innovative, creative, proactive and dare to take business risks. According to entrepreneurs are the energy and human qualities responsible for the use of products.Factors for achieving self-improvement and local economic development. Quality the entrepreneur will determine the success of the initiatives and programs undertaken Government 164
It should be noted that to achieve this goal, the government adopted an action plan Action plan to support the entrepreneurial state in the Republic of Tajikistan Name of event Result of work Development of the draft law of the Republic of Tajikistan on the support of entrepreneurs New mechanism of business and state protection Carrying out an analysis of the state of the entrepreneur in all directions Expansion of businessmen's capacity Assistance in conducting trade shows and fairs Coverage of entrepreneurs with state benefits, including financial ones Organization of seminars and conferences and training courses for entrepreneurs Improvement of cooperation between entrepreneurs The type of business activity during 2020-2022 Entrepreneurship is a key driver of economic growth and development in rural areas. It can help to create jobs, reduce poverty, and improve the standard of living. However, rural entrepreneurs often face a number of challenges, including limited access to finance, information, and markets. The quality of entrepreneurship is an important factor in determining the success of rural entrepreneurs. High-quality entrepreneurs are more likely to start and grow successful businesses. They are also more likely to create jobs and contribute to economic growth. The Republic of Tajikistan is a developing country with a large rural population. The government of Tajikistan has identified entrepreneurship as a key priority for rural development. However, the quality of entrepreneurship in Tajikistan is relatively low. 165
There are a number of factors that contribute to the low quality of entrepreneurship in Tajikistan. These include: · Limited access to education and training: Many rural entrepreneurs in Tajikistan do not have the necessary education and training to start and grow successful businesses. · Lack of access to finance: Rural entrepreneurs often have difficulty accessing finance to start and grow their businesses. · Poor infrastructure: Rural areas in Tajikistan often have poor infrastructure, which can make it difficult for entrepreneurs to transport their goods and services to market. · Corruption: Corruption can be a major obstacle for entrepreneurs in Tajikistan. The government of Tajikistan is taking a number of steps to improve the quality of entrepreneurship in rural areas. These include: · Investing in education and training: The government is investing in education and training programs to help rural entrepreneurs develop the skills they need to start and grow successful businesses. · Providing access to finance: The government is providing access to finance to rural entrepreneurs through a number of programs, including microfinance and loan guarantee programs. · Improving infrastructure: The government is investing in improving infrastructure in rural areas, which will make it easier for entrepreneurs to transport their goods and services to market. · Fighting corruption: The government is taking steps to fight corruption, which will create a more favorable environment for entrepreneurs. The development of rural entrepreneurship in Tajikistan is essential for the country's economic growth and development. By improving the quality of entrepreneurship, the government of Tajikistan can help to create jobs, reduce poverty, and improve the standard of living for rural residents. 166
In addition to the government's efforts, there are a number of other things that can be done to improve the quality of entrepreneurship in rural Tajikistan. These include: · Promoting entrepreneurship education and training in schools and universities. · Providing mentoring and support programs for rural entrepreneurs. · Creating business incubators and accelerators to help rural entrepreneurs start and grow their businesses. · Attracting investment in rural businesses. · Improving the business climate in rural areas. By taking these steps, we can help to create a more supportive environment for rural entrepreneurs in Tajikistan. This will lead to the creation of more jobs, the reduction of poverty, and the improvement of the standard of living for rural residents. Conclusion Rural entrepreneurship is essential for the economic growth and development of the Republic of Tajikistan. However, the quality of entrepreneurship in Tajikistan is relatively low. There are a number of factors that contribute to this, including limited access to education and training, lack of access to finance, poor infrastructure, and corruption. The government of Tajikistan is taking a number of steps to improve the quality of rural entrepreneurship, including investing in education and training, providing access to finance, improving infrastructure, and fighting corruption. However, more needs to be done to create a more supportive environment for rural entrepreneurs. This can be done by promoting entrepreneurship education and training, providing mentoring and support programs, creating business incubators and accelerators, attracting investment in rural businesses, and improving the business climate in rural areas. By taking these steps, it is possible to create a more prosperous future for rural Tajikistan. 167
Zimbabwe, a Country Making Strides towards National Development Mr. Jean Mfiri Patience Procurement Of icer, Ministry of Youth Sports & Recreation, Zimbabwe. Email: [email protected] , Phone: +263775926751. Introduction Despite having experienced episodes of significant growth in the economy of Zimbabwe, this has not translated into notable decent employment generation. The growth remained relatively non-inclusive, thus, benefitting a few. The Government of Zimbabwe, therefore, recognized the need to ensure that, no a strategy was put in place for action to ensure that one is left behind in the country’s drive towards a developed economy.Consistent with the collective aspirations and determination of the people of Zimbabwe to achieve an Empowered and Prosperous Upper Middle-Income Society by 2030, the Second Republic launched Vision 2030 to chart a new transformative and inclusive development agenda. It is the pursuit of this vision which will deliver broad based transformation, new wealth creation and expanding horizons of economic opportunities for all Zimbabweans, with no one left behind. Pursuant to this, Government developed the Transitional Stabilisation Programme (TSP) to guide the reform process during the period 2018 to 2020. Although some challenges were faced along the way, significant progress was made in the implementation of the TSP across its various pillars. The next steps towards attaining the objectives of Vision 2030 will be guided by the interventions that are going to be undertaken through the National 168
Development Strategy 1, which is going to be implemented from the period 2021-2025 (NDS1). The NDS1 is the first 5-year Medium Term Plan aimed at realising the country’s Vision 2030, while simultaneously addressing the global aspirations of the Sustainable Development Goals (SDGs) and Africa Agenda 2063. The NDS1 is premised on four critical guiding principles. The first is a recognition that bold and transformative measures are required to underpin the drive towards the attainment of our Vision 2030. Slow and incremental change will not deliver the transformation that the people of Zimbabwe deserve. Secondly, as the country continues to make headway with international re-engagement efforts, which in time will yield positive results, efforts to generate growth through intentional mobilisation of domestic growth vectors are the major focus right now. To this end, the NDS1 must attend to the development and capacitation of key national institutions, which will create the enabling environment critical for transformative economic growth. Thirdly, the NDS1 will deliberately leverage Zimbabwe`s competitive advantages particularly with regards to the configuration of our natural resource endowment, our excellent ecological endowment and our skills base. Finally, for transformative and inclusive growth to bring benefits to all Zimbabweans in a fair, transparent and just manner, the country’s commitment to the tenets of good corporate governance as enunciated in the Vision 2030 document must be intensified. The NDS1 is the culmination of extensive and structured stakeholder consultations through fourteen (14) Thematic Working Groups, and the consolidation of the policy proposals and strategies arising from extensive, across the board stakeholder consultations. The Objectives of the National Development Strategy 1 i. Strengthen macroeconomic stability, characterised by low and stable inflation, as well as exchange rate stability. ii. Achieve and sustain inclusive and equitable Real GDP growth. iii. Promoting new enterprise development, employment and job creation. 169
iv. Strengthen Social Infrastructure and Social Safety nets. v. Ensure sustainable environmental protection and resilience vi. Promote Good Governance and Corporate Social investment. vii. To modernize the economy through use of ICT and digital technology The country’s decent employment base is persistently being eroded, with many employment activities going on underground, further shrinking the absorptive capacity of the labour market. Formal net job creation in the country has been negative since 2013. Of the 2.9 million people employed in 2019, 930 000 were formally employed, 975 000 were informally employed and 990 000 were households. Out of total employed people, about 552 000 (19%) were in precarious employment and the majority were in the age group of 20 to 40 years. This reflects the growing risk of missing the demographic dividend. The employment situation has been severely impacted by the outbreak of the COVID-19 pandemic. Measures meant to alleviate the spread resulted in unemployment or underemployment, with 92% of firms having decreased the total number of hours worked per week relative to the period before the outbreak, while 22% decreased the total number of permanent workers. Decent work has been defined by the International labour Organisation (ILO) as being “productive work for women and men in conditions of freedom, equity, security and human dignity”. It offers opportunities for work that is productive and delivers fair income. Specific targets during NDS1 Period include: Increase the level of formal employment from 24% in 2020 to 30% by 2025. Reduce precarious employment rate from 19% to 14% by 2025 Increase the proportion of informal sector workers covered by Occupational Safety and Health Services from 0% to 20% by 2025. Realisation of decent jobs will be anchored on strengthening implementation of the following four pillars of decent work under the Decent Work Country Programme; i. Promotion of jobs and income opportunities. ii. Access to social protection. 170
iii. Social dialogue to facilitate cohesion and shared national vision iv. Labour standards. v. Government will prioritize development and implementation of a national action plan to facilitate the transition from informality to formality by the SMEs sector. In line with the thrust of economic transformation and allowing the private sector to emerge, establishment of incubation hubs, labour intensive public works programmes, remodeling of skills and entrepreneurship development as well as strengthening coordination of employment initiatives will be prioritized. Further, to ensure evidence-based programming of employment initiatives, a robust functioning Labour Market Information System will be developed. Key programmes under decent work will include Decent work promotion, Formalisation of the informal, Rural development and Policy and regulatory framework review. Government Support for SMEs During the NDS1 Period, Government will support SMEs to improve production capabilities with a view to reduce poverty and increasing incomes, both in rural and urban areas of the country through:- i. Specialized training for SMEs in Business Process Re-engineering, product development, standardization and certification and other production related training. ii. Provision of funding for working capital and production machinery at concessionary rates. iii. Provision of appropriate and affordable infrastructure. iv. Engage development partners to assist SMEs with machinery. v. Development of innovation hubs and clusters in the Provinces to aid rural industrialisation. 171
vi. Implement one village, one product concept vii. Provision of incentives for the development of a one village, one product concept. viii. Enhance participation of SMEs in public procurement. Although the National Development Strategy 1 is detailed on the Government’s intentions towards SMEs growth, progress has mostly been realized in the urban areas of the country. The rural economy remains severely underdeveloped. After studying other rural economies that are performing better like the Indian case, the scenario in Zimbabwe’s rural economy is attributed to several factors as follows: i. Poor rural infrastructure. Bad roads, poor network connectivity and poor electricity supply. The Government of Zimbabwe need to extensively invest in these things to create an enabling environment for small business owners and to promote ease of doing business. ii. Lack of marketing for local products creates a situation whereby handicraft practitioners have to rely mostly on foreign tourists for business which is resulting in lower turnover and discourages others from entering the market. iii. Lack of financing. It is difficult to grow a viable business without financial support; therefore, the Government needs to enhance efforts to make this possible through improving governance and performance of institutions like Empowerbank and the Women’s Bank which have been set up to boost SMEs growth, fostering Public Private partnerships and improve engagement with civic organisations. iv. Rural people also need to be educated for financial literacy so that they get an understanding of various forms of financing options available to them as well as be able to make sound financial decisions and properly monitor their business performance and growth. v. Poor Corporate Governance and ethics 172
vi. Delayed implementation of e-governance in whole of government. Implementation would improve efficiency and go a long way in mitigating corruption and bad practice. vii. Revival of the textile industry and skills training on the use of handlooms would make a huge contribution towards the enhancement of SMEs growth in the rural areas. viii. Sticking to the traditional agro-based model for rural areas. Instead of promoting crop production, there is need now to put emphasis on value addition to boost agricultural income. Government needs to put up the necessary infrastructure and equipment to enable SMEs to engage in value addition processes in business. Given the existing statistics on SMEs growth in rural areas, it is clear that the Government of Zimbabwe now needs to put more focus on this area in order to attain Vision 2030, leaving no one and no place behind. 173