HARARE, Feb 2 (NNN-NEW ZIANA) — India is prepared to renew the 2006 Memorandum of Understanding for a 5.0 million USD facility to fund small and medium enterprises (SMEs) in Zimbabwe which expires this year, says Indian Ambassador Ashok Venkatesan.

India would engage the Zimbabwe government on the possibilities of renewing the MOU, he told New Ziana here Monday, adding: “The project enters into its final stages this year and India would want to prolong the programme to enhance the capacity of small and medium enterprises.”

Venkatesan said the programme, which is meant to provide small and medium entrepreneurs with machinery and technical skills, was important as the sub-sector was critical in propping up the economy.

Drawing similarities with India?s experiences, he said SMEs had the potential to grow into major entities and spinning employment opportunities. “If the sector is adequately funded, it has the room to resuscitate the economy creating job opportunities and increasing the spending power of the ordinary people,? he said.

“In India, SMEs play a pivotal role in driving the economy. Zimbabwe has the chance to come to that stage,? he said.

The facility has seen various training centres in the country equipping an average of 45 SME owners with skills and machinery on a yearly basis since its inception, with plans to increase the number to 100 by the year-end.

SMEs have been furnished with state of the art drilling and milling machines, with experts flown from India to equip them with technical skills. “About five experts have been flown into the country to train the locals on how to operate this equipment with plans to bring in a large pool of technicians from India,? Venkatesan added.

He said extending the SME funding facility would cement the warm Indo-Zimbabwe relationship which stretches through the history of both countries.

Through the project, training centres have been established at the Bulawayo Polytechnic College, Harare Institute of Technology (HIT) and in Chitungwiza with plans to establish others in all provinces. — NNN-NEW ZIANA

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