“SMES ROLE IN CONSUMER PROTECTION” THE SMES INTERNATIONAL EXPO – “WORKING TOGETHER WE CAN MAKE A DIFFERENCE”. PRESENTATION BY THE EXECUTIVE DIRECTOR OF THE CONSUMER COUNCIL OF ZIMBABWE MS ROSEMARY SIYACHITEMA ON THE “SMES ROLE IN CONSUMER PROTECTION”

The Zimbabwe Medium Term Plan 2011 – 2015 says “The Small to Medium Enterprises(SMEs) and co-operative sector is considered to be Major player in the Zimbabwean economy Contributing on estimated 60% to GDP and 50% to total employment. The last then years of economic turndown experienced in Zimbabwe forced many corporations to downsize their operations. This resulted in the increased formalization of the Economy”

This is a testament to how important this conference is, especially SMEs, in the economy of Zimbabwe. And if we all agree with the above statement then we need to recommend strongly in the 2012 budget that SMEs are supported financially as this will have a great impact on the turnaround of Zimbabwean economy and downstream activities like: - Job creation Decrease in unemployment

c. Improved living standards of SMEs families and communities d. Increased exports and therefore more foreign currency inflows e. More local products to make true the Buy Zimbabwe Campaign f. Reduction in poverty

CURRENT CONSUMER COMPLAINTS As the Consumer Council of Zimbabwe (CCZ), in all our Regional Offices, we operate a Complaints Directorate. We receive numerous complaints emanating from poor products and services acquired from the market place. These complaints are wide ranging from excessive bills for energy and water to furnisher (beds, tables and chairs) which collapse within a short time of purchase. About 25% of our claims have been directed

specifically from things bought from SMEs and these have been to do with: - Lounge suites which collapse Dining tables and chairs which break at joints because they are not strong Beds which collapse Poor quality cooking oil, fizzy drinks and cordials Poor customer care especially when there are complaints Lack of guarantees and a no refund rule

CONSUMER PROTECTION We can never emphasize enough or shout loud enough about the adage “the Customer is King Or Queen”. With no customers or customers to buy goods or services then there would be no SMEs or business. The relationship between the Buyer (customer and consumer) and the seller (SMEs and business, service provider) is very precious and is symbiotic. It is SMEs responsibility to do and have the following: -

Produce quality, long lasting and affordable products SMEs should produce products with a safety component Addible or consumable goods need to be labelled, identifying content and also have sell-by dates SMEs should provide guarantees SMES should provide receipts for proof of purchase

f. SMEs need to have healthy customer complaints handling process and customer care g. Advertisement of products should not be false h. Products should be competitively priced and affordable

CONSUMER RIGHTS All the above go towards fulfilling consumer rights and therefore ensuring that SMEs adhere to consumer protection laws. These rights are: - The right to basic needs The right to information The right to choice The right top safety The right to be heard

6. The right to redress 7. The right to consumer education 8. The right to a healthy sustainable environment And these are important to SMEs to understand and take on board when doing their business.

A CONSUMER PROTECTION LAW FOR ZIMBABWE For the last ten years, the CCZ has been advocating for a Consumer Protection Law as the current pieces of legislation are scattered and difficult to use. A Consumer Protection Law will be holistic and set out parameters of balancing to relationship between buyer and seller on the market. It will not only protect the consumer, but will also make them more attractive for local consumption and for export as well.

Under SADC Guidelines and COMESA, countries belonging to these trade blocs have signed various Consumer and Competition Protocols which bind them to putting in place Consumer and Competition Laws which will ease trading within the blocs. It is therefore important for SMEs to understand the need for Zimbabwe to have a Consumer Protection Law and also SADC and COMESA Protocols.

In conclusion, the development of the SMEs sector needs to open up and understand that their livelihood depends on fulfilling the needs of the consumer and these generally will be: - Quality product with an acceptable standard Safe products Affordable Accessibility Not harming the environment Labels, clear information, sell-by dates

THANK YOU