Figure 2.2 illustrates the graphical movement of the Zimbabwean economy from 1963 to 2008.
Figure 2.2: Zimbabwean economy from 1963 to 2008 Source: World Bank, 2008
Zimbabwe started with the changeover from Rhodesia under the British governing minority rule to the black majority rule (independence) in 1980. The new government relied on international assistance and promoted socialism. The Zimbabwean government inherited one of the most structurally developed economies and effective state systems in Africa (Hawkins, 2015). However,
the economy contracted in the year 2000 after the government introduced the land reform program.
Figure 2.2 illustrates Zimbabwe's GDP annual percentage growth rate between 1961 and 2010. For the sake of periodic comparison, more recent data is also availed in Figure 2.3, covering the period between 2008-2016.
2.10.1 Zimbabwe GDP 1960-2018
The World Bank reports that Zimbabwe’s GDP in 2016 was valued at 16.29 billion US dollars.
Zimbabwe’s GDP represents 0.03 percent of the world’s economy. The reports reveal that Zimbabwe’s GDP averaged 6.26 USD Billion from 1960 until 2016, reaching an all-time high of 16.29 USD Billion in 2016 and a record low of 1.05 USD Billion in 1960.
Figure 2.3: Zimbabwe GDP: 2008-2016 Source: Tradingeconomics.com, World Bank
2.10.2 Zimbabwe GDP: 2008-2016
GDP measures the national income and output of the economy of a given country. The reported GDP in both Figure 2.2 and Figure 2.3 show the total expenditures for all final goods and services produced within Zimbabwe in a stipulated period. Wines (2010) postulates that the Zimbabwean economy has been shrinking since year 2000, guided by political turmoil and strife, investment flight, dishonesty and mismanagement of public entities. Year 2008 marked the lowest point in the history of Zimbabwe GDP. Inflation rose uncontrollably, peaking at five hundred (500) billion
percent in 2008 (Wines, 2010). According to the International Labour Organization (2017) report, many companies have had to retrench both male and female employees and close as a result, and with the high levels of unemployment, women were the hardest hit.
With the scourge of HIV and AIDS coupled with other economic burdening factors, women have had to resort to self- employment to take care of their families. Forced by either push or pull factors, women have been obligated to starting up small and medium enterprises within the emerging economy (Kirkwood, 2009; McPhee, Guimont and Lapointe, 2016; Rocha, Carneiro and Varum, 2018; Liu, Ye and Feng, 2018). The 2012, FinScope Survey noted that there were 5.7 million people in the MSMES Sector in Zimbabwe, which comprised 2.8 million businesses and 2.9 million workers. Table 2.2 shows the disaggregation of the 2.8 million businesses.
Table 2.2: Disaggregation of the 2, 8 million businesses in the 2012 2 million (71%) Individual
entrepreneurs
800 000 (29%) Business owners with employees
Gender 53 per cent female 54 per cent female
Age 28 percent are 30 years or younger 30 percent are 30 years or younger Education 31 percent have primary education or
less (including 4 percent without any formal education)
28 percent have primary education or less (including 7 percent without any formal education)
Position in the household
66 percent are heads of households 64 percent are heads of households Sources of
income
49 percent reported that the business is their only source of income
48 percent reported that the business is their only source of income
Source: Labour and Economic Development Research Institute of Zimbabwe (LEDRIZ):
2017
Colonialism left Zimbabwe in a state like that of most African countries, marked by gender imbalances underpinned by patriarchal dominance in economic activities (Mboko and Smith- Hunter, 2009). During the colonialist era, women in Zimbabwe were regarded as minors which affected Zimbabwe’s economy with reference to women entrepreneurship (Schmidt, 1992).
Zimbabwe’s patriarchal culture perceives women as less proficient than men in terms of starting and running businesses (Boehmer, 2017; Mboko and Smith-Hunter, 2009). Schmidt (1992) concluded that the original women's organisations in Zimbabwe were grafted from evangelistic activity and the church.
Furthermore, according to Schmidt (1992), the major objectives of these assemblages were to instruct African women about God. Women received instructions on how to sustain a household in relation to the Christian ethos of sanitation. Schmidt (1992) moreover, notes that the Victorian ideal of virtuous wife, selfless mother, and tidy, industrious housekeeper was the goal for which all African women should be taught to strive. No business skills were imparted to women, nor were they expected to perform any of the patriarchy related entrepreneurial activities.
However, extant literature (Nyamwanza, Paketh, Makaza and Moyo, 2016; Chinomona and Maziriri, 2015; Kabir, 2016; Prügland True, 2014; Garwe, 2014; Government of Zimbabwe; World Bank Group, 2017) indicates that there have been several initiatives to promote women- owned businesses in Zimbabwe. Table 2.3 lists some of the initiatives that were embarked upon in Zimbabwe from 2012 to 2018.
Table 2.3: Initiatives to promote women-owned businesses in Zimbabwe - 2012–2018 2018 Enterprise Development, Corporate Entrepreneurship and Sustainable Growth,
aimed at strengthening entrepreneurial management skills through capacity building and training to foster adoption of good workplace practices in small and large enterprises (ZNCC, 2018).
“National Competitiveness Commission also shows government effort to support industry, given that it will help address issues to do with competitiveness and ease of doing business for local and foreign investors.” Reserve Bank of Zimbabwe” (ZNCC, 2018)
2017 Women Entrepreneurs Finance Initiative (We-Fi) (World Bank; 2017) 2017 Re-igniting SMES Development in Zimbabwe (ZIMREF: 2017) 2017 2015 established Zimbabwe Reconstruction Fund (ZIMREF:2017)
2017 “Public Credit Guarantee Scheme - spearheaded by RBZ for SMES lending, backed by moveable collateral, guarantees, and improved information systems”
(World Bank Group:2017)
2017 “Understanding the dynamics and characteristics of the informal sector in Zimbabwe” (ZNCC:2017)
2016 “Zimbabwe’s National Financial Inclusion Strategy” (NFIS) for Financing SMES (World Bank Group, the Reserve Bank of Zimbabwe (RBZ), and the Zimbabwe Reconstruction Fund (ZIMREF: 2017) for re-igniting SMES development in the country (PRESS RELEASE NO: 2017/166/AFR)
“First to launch their business and the second for restocking and continuing costs.
They can also get help with training and support as they build up their management and business skills. Most of the women have already received their first batch of funding”.
(World Bank Group, 2017)
2012–2015 “Improved food and nutrition security at national and household levels in Zimbabwe - Zimbabwe CPF priority areas and outcomes:
Improved capacity of national institutions dealing with food and nutrition, agriculture, water management, land forestry and fisheries
Increased agricultural commercialization in small holder sector B3- Improved rural and urban agricultural infrastructure
Improved coordination, information generation and management in the agricultural, water and land sector
Improved preparedness for effective response to agriculture, food and nutrition threats and emergencies
Cross-cutting issues: Gender and HIV and AIDS Outcome: Improved mainstreaming of gender and HIV and AIDS into all programmes” (GoZ and FAO CPF 2012–2015)
Source: Own Compilation