The government says it is working on reviewing thresholds for small and medium enterprises (SMEs) and introduces other incentives to promote formalisation process of the sector.

Formalisation of the SMEs has been the government’s target considering their contribution to economic growth.

Early this year the government through the Ministry of SMEs and Cooperative Development in partnership with the Zimbabwe Revenue Authority embarked on a registration exercise and by 30 June more than 13 000 SMEs were formally registered.

In an interview with the ZBC News in the capital, the Minister of SMES and Co-operative Development, Cde Sithembiso Nyoni said they have extended the registration period for SMEs and they are going to engage ZIMRA to come up with other incentives that will attract more small business to register their ventures formally.

Cde Nyoni said they are also working towards reviewing thresholds for SMEs to encompass many of them thereby broadening their base which will be an advantage to the tax collector.

SMEs have been identified as the new economy that is providing jobs for many Zimbabweans and is contributing immensely to the fiscus.

However, their growth is hindered by a number of challenges including lack of financing, market linkages and accessibility.