NSSA's Initiatives to Support SMEs and Informal Sector in Zimbabwe

The National Social Security Authority (NSSA) is taking significant steps to support Zimbabwe's small and medium enterprises (SMEs) and informal businesses by constructing market stalls nationwide. This initiative aims to provide these vital sectors with decent workspaces, fostering growth and economic inclusion.

To further bolster small businesses, NSSA has allocated US$5 million to establish Lendespark Finance, a micro-lending institution under its subsidiary, the National Building Society (NBS). This funding is designed to offer financial support tailored to the needs of SMEs.

One notable project is the Makoni Shopping Mall in Chitungwiza, a double-storey complex dedicated to SMEs and micro-enterprises. This facility will provide entrepreneurs with the necessary infrastructure to thrive. Additionally, in Mutare, NSSA is collaborating with the City Council to develop the Sakubva Shopping Mall, which will feature a green market and micro-industrial hub, emphasizing sustainable business practices.

These developments are part of NSSA's broader strategy to engage with underserved economic sectors, promoting financial inclusion and offering formal work environments for informal traders. Such efforts not only support business growth but also have the potential to enhance government revenue through the formalization of previously informal enterprises.

The Zimbabwe National Chamber of Commerce (ZNCC) reported in its 2023 State of Industry and Commerce survey that 71% of Zimbabwean businesses operate informally. This high level of informality poses challenges for tax authorities. A study by University of Zimbabwe researcher Curren Pindiriri estimated that informalization cost the Treasury approximately US$1.15 billion between 2020 and 2023.