Zimbabwe advised to benchmark coop and SME regulation with Kenya to enhance financial inclusion and SME formalisation

HARARE, May 28, 2025 –– Zimbabwe’s Cooperative and SME Regulatory Framework could benefit immensely from benchmarking with Kenya’s proven model, a move that would accelerate financial inclusion and the formalisation of Small and Medium Enterprises [SMEs]. By drawing insights from Kenya’s well-established cooperative sector, Zimbabwe can strengthen its efforts to create an inclusive and structured economic environment, aligning with the national vision of becoming an upper-middle-income economy by 2030.

According to SMEs Development Expert and Secretary-General of the Indigenous Advisory Practitioners Association of Zimbabwe [IAPAZ], Last Matema, Kenya’s cooperative movement is a pillar of sustainable SME development, fostering entrepreneurship, financial inclusion, and business growth.

He said Savings and Credit Cooperatives [SACCOs] and housing cooperatives in Kenya have transformed access to affordable credit and mobilized significant savings, directly supporting SME expansion and formalisation.

Matema believes Zimbabwe can adapt and integrate similar strategies to create a more robust and self-sustaining ecosystem for cooperative-led SME development.

“Kenya’s cooperative sector thrives because of a well-structured regulatory framework that integrates SACCOs, housing cooperatives, and SME business associations into a cohesive financial and economic model,” said Matema. “This system ensures accountability, transparency, and accessibility, enabling small businesses to scale up and participate in mainstream economic activities. Zimbabwe has the opportunity to strengthen its cooperative sector by adopting a similar integrated approach.”

Kenya’s cooperative success lies in its ability to create a self-regulating ecosystem that facilitates SME development. The SACCO Societies Regulatory Authority [SASRA] ensures SACCOs operate within a robust legal framework, enabling them to mobilise billions in savings and extend affordable credit to businesses. Similarly, housing cooperatives are regulated under the Cooperative Societies Act, promoting structured, community-driven development.

Matema emphasised that Zimbabwe can leverage this cooperative model to empower SME business associations. “A well-regulated cooperative system that incorporates SME business associations will facilitate access to structured financial products, mentorship programmes, and business growth initiatives. This model will drive meaningful financial inclusion and economic empowerment by providing SMEs with the support and capital they need to formalise and grow,” he explained.

A critical aspect of this transformation, Matema argues, is bringing SME business associations under the purview of the Cooperative Societies Act [Chapter 24:05]. This would create a structured regulatory framework to promote accountability, access to finance, and economic participation.

“Currently, many business associations in Zimbabwe operate informally, which limits their ability to drive sustainable SME growth. By integrating them into the cooperative system, we can unlock access to credit, strengthen governance, and provide a clear pathway for SMEs to transition into the formal economy,” Matema stated.

SOURCE ––  Southern Eye

https://thecooperator.news/zimbabwe-goes-for-brazilian-maize-amid-drought/

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