Innovation vital for SMEs’ survival in Africa - CEO Steward Bank

Small and Medium Enterprises (SMEs) are the backbone of many African economies, playing a crucial role in driving employment and GDP growth. Lance Mambondiani, CEO of Steward Bank in Zimbabwe, emphasized the importance of developing SMEs to foster economic growth and pave the way for them to scale into larger businesses. Despite facing challenges such as skills gaps and volatile market conditions, Mambondiani remains optimistic about the potential for innovation to drive SME success across Africa. Mambondiani highlighted the significance of skills development in nurturing SMEs. While acknowledging the informality of many SMEs at their inception, he emphasized that the presence of ideas and entrepreneurial spirit is a strong foundation for growth. He pointed out that, although skills gaps may exist in some areas, there is a wealth of creativity and innovation emerging from countries like Kenya, South Africa, Zimbabwe, and Rwanda. Mambondiani commended the strides taken by these nations in fostering entrepreneurial talent and generating groundbreaking ideas. Addressing the issue of education and practical skill development, Mambondiani underscored the importance of equipping aspiring entrepreneurs with the tools needed to establish successful businesses. He stressed the need for business schools in Africa to focus on imparting practical skills that go beyond traditional business models. With the right education and training, Mambondiani believes that African entrepreneurs can break new ground and compete on a global scale. In a region marked by economic challenges and market volatility, Mambondiani acknowledged the complexities of operating a business in Zimbabwe. He likened the experience to a test of resilience, where navigating obstacles can lead to significant opportunities. Despite the hyperinflation and price instability prevalent in the country, Mambondiani encouraged a proactive approach to business development, leveraging challenges to drive innovative solutions. When it comes to managing capital adequacy in the face of economic uncertainties, Mambondiani shed light on Steward Bank's strategy. Operating in a dual currency system, the bank adheres to stringent capital adequacy requirements set internationally. With a focus on meeting and exceeding regulatory standards, Mambondiani emphasized the bank's commitment to financial stability and risk management. In conclusion, Mambondiani's insights underscore the vital role of innovation in bolstering SME resilience in Africa. By fostering creativity, enhancing skills development, and embracing challenges as opportunities for growth, SMEs can thrive in dynamic and unpredictable economic landscapes. As Africa's SME sector continues to evolve, innovation remains a key driver of success and sustainability.