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 formalization 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. 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 formalization.
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 mobilize 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 emphasized 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 programs, 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 formalize 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.
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He further stressed that SME business associations should not only be empowered but also held accountable for ensuring their members comply with regulatory and financial obligations.
“Formalization is not just about registration—it’s about creating sustainable businesses that contribute to national development. A well-structured cooperative system linking SMEs to SACCOs and other financial instruments will enhance transparency, collective responsibility, and long-term business viability,” he added.
Beyond regulatory adjustments, Matema underscored the importance of capacity-building initiatives to support SMEs in their transition to the formal sector. He urged stakeholders to collaborate on providing targeted training, financial assistance, and mentorship programs.
“Many SMEs struggle to meet regulatory requirements due to resource constraints and limited financial literacy. Through structured support mechanisms embedded within cooperative institutions, we can enhance compliance, improve access to financial services, and drive sustainable economic growth,” he noted.
Matema also highlighted the importance of a pan-African approach, emphasizing that Zimbabwe can leverage successful cooperative models from other African nations to accelerate progress. “Africa has a wealth of knowledge in cooperative-driven economic development. By learning from these experiences, Zimbabwe can broaden its Cooperative Societies Act to establish a regulatory framework that fosters sustainable SME growth, financial inclusion, and national economic resilience,” he said.
As Zimbabwe moves towards its Vision 2030 aspirations, Matema believes that formalizing SMEs and strengthening cooperative institutions and SME business associations will be critical. “A regulatory framework that integrates business associations into cooperative structures offers a practical pathway for sustainable SME development. The opportunity now lies with policymakers and stakeholders to take decisive action and drive Zimbabwe towards a more structured, inclusive, and prosperous economic future,” he concluded.
By adopting Kenya’s best practices and tailoring them to Zimbabwe’s unique economic context, the country can unlock the full potential of its cooperative sector and SMEs, paving the way for inclusive economic growth and development. The integration of SACCOs, housing cooperatives, and SME business associations under a cohesive regulatory framework will serve as a catalyst for long-term financial inclusion and entrepreneurship, ensuring sustainable economic transformation.
