Major boost for Byo MSMEs IN a major boost to Government’s national drive for financial inclusion and the formalisation of the micro, small and medium enterprise (MSME) sector, the Bulawayo Economic Development Agency (BEDA) signed a Memorandum of Understanding (MoU) with Innbucks, a leading microfinance institution to provide much-needed funding and financial tools to small businesses. *Follow Our Channel:* https://whatsapp.com/channel/0029VaX77yH5fM5bBLKuyp1O The agreement underscores the critical role of collaborative efforts in accelerating the transition of informal enterprises into the formal economy. Under the terms of the agreement, MSMEs will gain access to a suite of affordable financial products, including microloans, savings accounts and digital payment platforms, aimed at reducing the barriers that have long kept many entrepreneurs on the margins. The partnership dovetails with the country’s National Development Strategy 1 (NDS1) and the broader Vision 2030 framework, both of which prioritise the formalisation of the MSME sector and the banking of the unbanked as pillars of inclusive growth. Ms Rutendo Muhwava, client relationship manager at Innbucks, emphasised the intention behind the collaboration and that they are proud to partner with BEDA in this transformative journey. “Our objective is to simplify access to financial services for the unbanked and underbanked. This collaboration will empower entrepreneurs to formalise their businesses, tap into broader markets and align with the Government’s vision for economic formalisation and inclusive growth,” she said. “Our agency is committed to building an environment conducive to business growth and investment in Bulawayo. This MoU addresses the critical challenge of financial exclusion among informal businesses. We foresee a ripple effect that encourages business formalisation and expands access to trade and investment opportunities,” he said. Mrs Judith Ncube, the Bulawayo Metropolitan Minister of State for Provincial Affairs and Devolution, spoke to the initiative’s alignment with Government policy. She said: “Our Government recognises that a formalised MSME sector is essential for sustainable development, improved tax revenue and greater social protection. This initiative gives small businesses in Bulawayo the tools to grow and contribute more meaningfully to the national economy.” Economist, Mr Tinevimbo Shava pointed out that regularising MSMEs through microfinance will broaden the tax base and, over time, ease the tax burden on businesses and individuals. “Through bringing more enterprises into the formal sector, we capture a wider spectrum of economic activity,” Mr Shava noted. “An increased tax base will ultimately allow for lower tax rates elsewhere, spreading the fiscal load more equitably and supporting long-term economic resilience.” Dr Prosper Chitambara, a renowned development economist underlined the broader economic impact. “This initiative will catalyse growth not only within the MSME segment but across the entire economy. As these businesses gain access to capital and digital tools, they will hire more workers, innovate, and increase productivity. That multiplier effect contributes directly to national output and job creation.” Financial inclusion through microfinance is a cornerstone of Vision 2030, Zimbabwe’s roadmap to upper-middle-income status by the year 2030. The strategy envisions a diversified economy where MSMEs drive innovation, employment and export growth. Through improving access to credit and formal financial services, the government aims to shrink the informal economy’s footprint, currently estimated to represent more than half of national GDP and redirect that activity into official channels that deliver social protection and fiscal revenue. Over the next 12 months, the partners aim to enrol at least 2 000 MSMEs into the new microfinance products, with progress monitored through a joint steering committee. Stakeholders believe that the initiative will also foster gender equity in entrepreneurship. Recent surveys show that women account for a substantial share of informal traders, many of whom lack collateral or credit histories. By offering microloans without traditional collateral requirements, the partnership hopes to close the finance gap that has hindered female business owners. Looking ahead, BEDA plans to replicate the model in other provinces, using lessons learned in Bulawayo to refine product design and delivery mechanisms. The ultimate goal is a nationwide network of community-based microfinance hubs that support MSMEs in every region, turning the dream of a formalised, digitally inclusive economy into reality.