Diaspora Matters

Mwadzukwa Bwanji, Good Morning ZBIN members and followers, so this morning I bring you Great News! Your favourite business forum has a new initiative to help our members in marketing their products and services. We are launching Southern Africas’ first Online Car Boot Sale! All regional adverts in one boot, the sale will be run every Sunday reaching all the 4 corners of Southern Africa.

As you already know, ZBIN reaches several African countries in Southern Africa such as Zimbabwe, Zambia, Malawi, Namibia, Botswana, Mozambique, Lesotho, Malawi, Tanzania and South Africa. We are therefore inviting members and followers from these countries to submit your adverts if you are interested in your adverts reaching a wider audience.

One Car Boot Sale for Southern Africa, connecting Southern Africa business in one place! Do send your adverts to my Whatsapp Number +263774081808 and I will compile and consolidate all posts and publish every Sunday at 7:00pm.

Remember the service is absolutely free

Ke a leboga

At ZBIN we have officially adopted Mozambique as our investment destination, this because no one talks positively about Mozambique. The only time the international community talks about Mozambique is when there are natural disasters like the current Dineo Cyclone which recently ravaged the beautiful nation. So if you want to read positive news about Mozambique then ZBIN is your number 1 choice. We have also decided to look for best business practice from countries that are rarely covered in Zimbabwe such as Rwanda, Uganda, Kenya, Philippines, Malaysia and Israel.

So this morning we would like to cover an important business practice called Benchmarking. Some of you already do benchmarking without knowing it, it is not an entirely concept. Let me provide you with a definition below:

Benchmarking is the process of comparing your own organization, operations, or processes against other organizations in your industry or in the broader marketplace. Benchmarking can be applied against any product, process, function or approach in business. Common focal points for benchmarking initiatives include: measures of time, quality, cost and effectiveness and customer satisfaction.

In short Benchmarking is to compare your own operations versus competitors and to generate ideas for improving processes, approaches and technologies.

Benefits of Benchmarking

1. Enables you to systematically monitor competitor’s shifting strategies and approaches.
2. It enables you to generate ideas for improving own operations
3. Benchmarking can help to reduce costs and increase profits.
4. Enable you to strengthen customer loyalty and satisfaction
5. Helps to identify and eliminate gaps in service or product delivery or to gain a competitive edge.

The Limitations of Internal Benchmarking:

There is a danger of being preoccupied with benchmarking such that you easily lose track of competitor and broader-world innovations and changing demands of customers. If you are not careful you can end up responding to competitor actions and not focus on your strategy.

So do not operate your business in isolation, always check what is happening next door, in your industry or across the borders. In simple terms this is a process of learning from the best, the crème de la crème in your industry. In Benchmarking Part 2, we will cover how to carry out a Benchmarking exercise and provide a few practical examples.

Enjoy your weekend

Lets hear what ZBIN members have to say:

Rutendo Faith kurima mavegs in garden like green beans.peas.carrots.butternuts.green pepper mushroom etc depending nenzvimbo

Tori Elles Mum Why paLong Chen chete Mdala Wa Rue

Mdala Wa Rue We will move from area to area, next week its going to be Birchenough Bridge…the other one Chipinge, Nkulumane and so on…We will even cross the border as our members are also found outside Zim. So for those familiar with Longchen just put yourself there….you have been given $100 and with $100 you are supposed to grow it so that u can be self sustainable

Maria Gapara Konyango He can buy a 20ltr bucket of honey for $65 which will give give him 60bottles of honey. Use the rest of the money to buy bottles to pack the honey in. Oita target macustumers epaLonchen achitengesa at $3.50. He will make kanice $210 kake. Ah regai nditokaitawo kabusiness kacho…😜

Sir Emmanuel Angel Dausi i will get stuff like kids toys , toiletries and resale them in town or kughetto they are very cheap palongchen

Tendai Mazike Jani Buy green vegetables at mbare musika and sell them to supermarkets

Vongai Tongesayi Akatora $100 anouya kuSunony otora manatural products omatengesera machinese nemablacks achirapa vanhu sezvandiri kuitawo at 100percent profit

Micheal Tafadzwa Mapfumo I will buy chemicals for waterless car wash. I will then negotiate with motorist in the car park so that l will get their cars done whilist they do their shopping

Zet’Kay Davyd Will go for airtym business

Wayne Teflondon Zimstar Nice brainstorming maboss

Tee Earl Tee It’s sunny these days so I think making those paper caps with a string behind for both kids and parents would give you a good return. They just need to be branded with the cartoon characters or a cool meme

Mdala Wa Rue Great answers Thanx guys: For our analysis these are important facts-Economy not expected to grow slowly with a targeted rate of 4% in 2017, liquidity challenges continuing to affect Zimbos, forex challenges a key factor in the Economy.
A look at Long Cheng (Thanx for corrections), shoppers mostly visit the area for the Ivato Supermarket,Ivato Hardware,Kids Park and other shops. Other shops consist of boutiques, liquor, night clubs, health and fitness, electrical shops and video game shops.
Its agreed $100 cannot do much at this popular place which is largely visited by parents visiting the Kids Park. We can however segment visitors and identify (Parents and Kids) as a key customer segment. Someone has identified toys,hats etc…great stuff. You can distribute fliers for schools and creches for a commission too-this does not require a lot of capital.
Perhaps the biggest business u can do at Long Cheng is to create your own online Longcheng (Already one exist but is not good enough). Create a website for $80, have a basic site like what ZBIN did when we first registered our site. On the site place all shops that exist at the mall…..sell the idea to retailers at the mall that you will host them on your site and help promote them, highlighting products and services-discounts etc. You can have a shop feature interviewing shop owners.
You can create a hype-create followers of Long Cheng and convince them why they should visit the mall, what else to see besides the Children’s Park. New developments at the mall, new shops and why people should visit it. Initial resistance from shop owners to be expected but they will accept if you can show results…charge them for the service.

Risks
An existing website exists so you need to discuss first with Long Cheng for the use of their name.

Justice Mungwini ndirini ne $100 ndonotora hangu ma ice cream pa dairiboard…or kutopindira chibage chinyoro mu Mbare ndosvikoita gochi gochi pa entrance…zvikafaya ndo expanda ndaakutotora nenyimo nyoro ndotengesa dzabikwa…ndichiisa mari pa side till ndatenga ka bakkie…

So there you are some of the brilliant responses from our members. Do add if you have additional contributions.

At ZBIN we only give free investment information, we do not take funds from members for investment. What you do with the free information we provide you is your business. Our aim is to enable you to make informed decisions when it comes to investment. We like to see more people investing and creating a lot of opportunities for themselves and the nation.

We have a ‘No Thanks Policy’, you just obtain free information and disappear without saying Thank You to the admin. So we have given you a lot of investment information covering Mozambique, Zambia and Zimbabwe-we feel proud of the number of hits of the posts we covered this week. More should be coming your way next week as we cover various investment options.

Online Forex Trading fraudsters

We have decided to end the week by looking at Risk Management. As you know investment and risks zvinoti gedye gedye-pane ma opportunities panozara mbavha. Some time back we encouraged our members to be wary of fraudsters and specifically covered Online Forex Trading where we encouraged members to learn to trade on their own and never allow anyone to trade on their behalf. Do not part with monies by being hoodwinked by Online Forex Traders.

Some are offering free lessons on forex trading and after that encourage members to open accounts and trade on behalf of them. All of these schemes are resulting in a lot of people losing their hard earned monies. As I write this article, I have in my inbox a sister who has provided me with names of 2 Online Forex Traders who received thousands of dollars from a group made of 64 members. Each member contributed funds ranging from $200 to $1500. Initially a few people who invested funds got good returns before the fraudsters disappeared without trace.

As ZBIN we have an Online Forex Trading Group where members get free information and resources, you do not pay joining fees, we encourage members to get confidence trading on dummy accounts before going live. Avoid paying funds to people forming WhatsApp groups claiming to give good returns on investment-most of these people are fraudsters who will disappear with your monies after you have gained confidence in them.

Poultry Fraudsters

The second group of fraudsters comes from people with poultry schemes who visit farmers and selling broiler chicks. They later ask farmers to sign contract forms to join poultry schemes where they pay monies upfront for more chickens with a promise of a guaranteed market. After farmers have parted with their monies, the fraudsters disappear for good. This is rife in rural and peri-urban areas.

So we are coming back again and encouraging our members to be wary of crooks who are coming up with new schemes. The schemes initially give good returns to a few people just like the MMM scheme but with time collapse leaving a lot of disappointed investors.Do not join any new group promising good returns on investment.

We took the following photos during our first forum business tour of Cidade De Tete which is located less than 360 kilometres from Harare.

A lot of opportunities exist in the city and our brothers and sisters from across Limpopo have taken over. South Africans have established their own shopping malls where you can find sops such as Shoprite and PEP.

Our next business tour to explore Mozambique is  during the Easter Holiday in April 2017. Interested in travelling? If you are interested in travelling we have good news for you-there is no need to pay any joining fee or travel costs to the group-you can just bring  your car and friends  and join the fun in discovering Beira.

More information to come in March 2017. Do check out some of the photos that we took (apologies for quality).

ZBIN covers 6 countries in Southern Africa namely Zimbabwe, Zambia, Malawi, Namibia, Botswana and South Africa. Our posts mainly target nationals from those 6 countries and we also include the Diaspora. We have 2 business groups under the ZBIN umbrella for South Africans and Malawians, in future we hope to cover Namibia, Zambia and Botswana.

We continue with our vision Towards a Diaspora Strategy where we hope that governments in Southern Africa will appreciate the importance of the Diaspora community and develop strategies for engagement with this important community.

We start with a few highlights from the World Bank MIGRATION AND REMITTANCES FACTBOOK 2016 THIRD EDITION BOOK

1. More than 247 million people, or 3.4 percent of the world population, live outside their countries of birth. Although the number of international migrants rose from 175 million in 2000 to more than 247 million in 2013 and will surpass 251 million in 2015, the share of migrants has remained just above three percent (of world population) for the last fifteen years.
2. The top migrant destination country is the United States, followed by Saudi Arabia, Germany, the Russian Federation, the United Arab Emirates, the United Kingdom, France, Canada, Spain, and Australia. The top six immigration countries, relative to population, are outside the high-income OECD countries: Qatar (91 percent), United Arab Emirates (88 percent), Kuwait (72 percent), Jordan (56 percent), and Bahrain (54 percent).
3. In 2015, worldwide remittance flows are estimated to have exceeded $601 billion. Of that amount, developing countries are estimated to receive about $441 billion, nearly three times the amount of official development assistance. The true size of remittances, including unrecorded flows through formal and informal channels, is believed to be significantly large.
4. The cost of remittances is the highest in Sub-Saharan Africa and in the Pacific Island countries (for example, it costs more than 20 percent to send $200 from Australia to Vanuatu, and 19 percent from South Africa to Zambia). As of the third quarter of 2015, the average cost worldwide remained close to 8 percent—far above the 3 percent target set in the Sustainable Development Goals.

Below we look closely at micro finance involvement in the diaspora remittance sector. This is a key missing link especially when one looks at Zimbabwe where close to a US $1 billion was remitted in 2016. The figure can double or triple if an enabling environment is in place to encourage investment by the Diaspora. We encourage Researchers and Policy Makers to look closely at the organisation called Kiva and the link with micro finance institutions.

Give a man a fish, he’ll eat for a day. Give a woman microcredit, she, her husband, her children and her extended family will eat for a lifetime.’ Bono

According to Johnson and Sedaca many experts feel that increasing the involvement of credit unions and microfinance institutions (MFIs) in the remittance transfer process is a promising means to expand financial access to the poor, particularly in rural areas with no access to the larger commercial banks. Microcredit and microfinance are relatively new terms in the field of development, first coming to prominence in the 1970s and they are recognized as effective tools to alleviate poverty. ‘Broadly speaking, microfinance for loans (i.e., microcredit) is the provision of small-scale financial services to people who lack access to traditional banking services. The term microfinance usually implies very small loans to low-income clients for self-employment,

There are said to be at least nine traditional features of microfinance:

1 Small transactions and minimum balances (whether loans, savings, or insurance)

2 Loans for entrepreneurial activity

3 Collateral-free loans

4 Group lending

5 Target poor clients

6 Target female clients

7 Simple application processes

8 Provision of services in underserved communities

9 Market-level interest rates.

It is reported that microfinance institutions are increasingly looking to diasporas as a source of funding for small enterprises. To that end, the World Diaspora Fund (WDF) was launched in 2010 and it is an initiative of the Working Group of the International Migrants Remittances Observatory for Least Developed Countries in partnership with several public and private organizations. The WDF is intended to offer migrants a secure investment vehicle (microcredit organizations) that will contribute to the development of their countries of origin.

The WDF will invest through loans, guarantees, or even taking stakes in microfinance institutions in the South. The Fund will also participate in financing infrastructure identified by the migrants. The Fund will invest through guarantees, loans and equity in microfinance institutions that are regulated and sustainable. It will also participate to the co-financing of infrastructures proposed by the migrants. Furthermore, organizations such as Kiva.org provide a channel through which diaspora members can provide microfinance to the homeland. Kiva is a non-profit organization with a mission to connect people through lending to alleviate poverty. Leveraging the internet and a worldwide network of microfinance institutions, Kiva lets individuals lend as little as $25 to help create opportunity around the world. Kiva works with microfinance institutions on five continents to provide loans to people without access to traditional banking systems. One hundred percent of the loan is sent to these microfinance institutions, which Kiva call Field Partners, who administer the loans in the field. Since Kiva was founded in 2005 it has made $203 million in loans through 568,876 Kiva lenders with a 98.65% repayment rate.

‘If you look at Kiva.org, people with a very modest amount of money can make a huge positive impact all around the world. There are so many people who want to give but don’t really know how to do it. Through Kiva.org, people around the world can become micro-bankers to developing world entrepreneurs, who have their own ideas, so we can give them a chance to raise their kids with dignity, send their kids to school, and in troubled places like Afghanistan we can marginally increase the chance that peace can prevail, because people will see there is a positive alternative to conflict.’ Bill Clinton, 42nd President of the United States

We encourage our members to share business information with your loved ones. This is the best gift you can give them, give them more information which you freely get from your favourite business site. At ZBIN you just get information and use it, no need to say thank you to the Admin or the group. We have a ‘No Thank You Policy’ so keep reading and following but please share the information with others. A former boss of mine use to say ‘A candle loses nothing by lighting another candle’. Share business and investment advice shared here at churches, family gatherings, and lunch time discussions and at any gathering. Get into the habit of identifying business opportunities and sharing with others and you will be surprised with the positive impact you will have.
So today we take a close look at a growing industry- The Tourism Industry in Zimbabwe and Zambia. Foreign tourist arrival numbers have been encouraging in 2016 and we expect better fortunes in 2017 for both countries and the region as a whole. You do not need to analyse any sophisticated market reports to notice that more tourists are visiting Zimbabwe and Zambia have increased.

Below we have a market intelligence report on Zimbabwe and Zambian Tourism that would like to share with our members. This is part 1; in part 2 we hope to be specific in terms of opportunities that exist in this lucrative sector dividing the opportunities into Capital intensive opportunities, low capital opportunities and lastly opportunities for the Diaspora.

Tourism Opportunities in Zimbabwe
In spite of the economic potential of Zimbabwe, with its strong gold, natural resources and agricultural environments, the 1.4% GDP growth registered in 2015 demonstrated the fragility and volatility of the country’s economy. Nevertheless, and despite the adversities, inbound arrivals was able to develop, recover from the crisis in 2008 and increase its contribution to the national GDP.
UNDERDEVELOPED ENTREPRENEURIAL FRAMEWORK UNDERMINES E-COMMERCE

The Zimbabwean travel market largely consists of local and uneducated entrepreneurs who try to adapt to the domestic market and to demand from foreign tourists. If in terms of currency and language this adaptation is easy, in terms of new communication technologies an extremely underdeveloped scenario is apparent. This is evident in the market’s online sales, which are nominal. The lack of multinational players operating in the country further explains the poor performance of online sales.

LOW COST CARRIERS SHOW THE WAY

Despite the underdeveloped stage of some categories in this market and even the Zimbabwean airlines category, airlines has, in fact, demonstrated some outstanding entrepreneurial dynamics. After FlyAfrica.com began to operate low cost flights in the country, in 2015 Fastjet Zimbabwe began to offer both internal domestic flights and connections to South Africa. This bold entrepreneurial attitude fuelled the category and the overall market and resulted in increasing competition in other categories.

DOMESTIC TOURISM DAMAGED BY HIGH PRICES
Domestic tourism flows were significantly undermined by the high prices practised in the country and which are only affordable for foreign tourists. Domestic tourists increasingly complain that an average Zimbabwean worker cannot afford the costs of local hotels or the expensive adventure and safari packages sold through intermediaries. This trend led to a decline in domestic flows in the country in the latter part of the review period.

MARKETING AND PRODUCT DIVERSIFICATION TO FUEL THE MARKET
The Zimbabwean Government acknowledges the increasing importance of travel in the development of the country’s economy. As a result investment aimed at stimulating Zimbabwe’s tourism potential abroad is already underway and the results may well be felt in the short term. In parallel, in order to make the country more appealing to foreign tourists, intermediaries need to innovate and create new touristic products. In other African destinations, the creation of luxury safari and adventure packages is becoming increasingly fashionable and should be exploited by local entrepreneurs. In parallel, support mechanisms to stimulate domestic tourism should be urgently implemented by official entities in partnership with lodging and intermediary entrepreneurs.

Tourism Opportunities in Zambia

ZAMBIA PLANS NATIONAL AIRLINE TO BOOST TOURISM
The Ministry of Tourism and Arts confirmed that it is considering the re-establishment of a national airline to help boost the country’s booming tourism industry. It has received interest from potential partners in Europe, the US, Africa and the Middle East. It is planned that the proposed new national carrier would fly locally and to neighbouring countries, as well as to one or two longer haul routes including London. The re-establishment of the national airline would help further increase trade in terms of imports and exports. It would also complement the Link Zambia 8,000 Road Development project in promoting easy access to the various tourism destinations and products that Zambia is famed for, such as its 20 wildlife parks, heritage sites, water bodies and the mighty Victoria Falls.

ZAMBIA’S GOVERNMENT AIMS TO ENCOURAGE DOMESTIC TOURISM
The Zambia Tourism Board (ZTB) has officially launched a campaign dubbed ‘Green season domestic tourism’, aimed at encouraging Zambians to take a holiday. The Green season domestic tourism campaign aims to introduce a period for local tourists to take holidays in the lodges and hotels usually frequented by foreign tourists. So far, the result from private companies has been overwhelming in terms of reducing their prices for lodges and hotels.

NEW VISA SYSTEM TO BOOST ZAMBIA’S TOURISM
Since December 2014, a new uni-visa system has been in place at Zambian/Zimbabwean borders, meaning that visitors to both countries require just one visa. This applies to all 40 countries that currently require a visa for either country. The new visa system has developed due to an increasing number of joint ventures between Zambia and Zimbabwe that have looked to improve the lives of citizens in both countries, as well as the new open border policy that exists between the two countries.

ZAMBIAN GOVERNMENT WANTS TO ATTRACT INVESTMENT AND BUSINESS TRAVELLERS
Zambia’s tourism industry will become more competitive following the removal of the visa requirements for all nationals of the Common Market for Eastern and Southern Africa (COMESA) who enter the country for official business. Zambia will now compete with countries such as Botswana, Namibia and South Africa, where visas are not required. This is very important as it will now be easier to visit Zambia as the barriers to entry have been removed. Zambia has lots to offer in terms of business and conferences, as well as ecotourism.

NEW AIRLINES AND ROUTES ATTRACT NEW TOURISTS AND BUSINESS
Public investment and public initiatives, stable economic growth and the potential of Zambia’s tourism industry has attracted the attention of several airlines. The government has started the implementation of the US$31.0 billion project Link Zambia 8000, which will develop 8,000 km of road infrastructure and create an internal network. The launch of a domestic tourism campaign in 2014 by the Zambia Tourism Board (ZTB) has contributed to the performance of the industry through increased local participation. As a result, airlines are showing interest in providing new investments. For example, Fastjet plans to invest US$15 million in Zambia and new airlines such as Rwandair and Flyafrica plan to expand their businesses into Zambia and other African countries.

The report below was produced by ZIMTRADE and gives you helpful advice on investment opportunities in Zambia.

Zambia has experienced strong economic growth in recent years, with the country being classified as one the fastest growing economies in Sub-Saharan Africa. Real GDP growth was recorded at more than 6% per year between 2005 and 2013, with the main drivers of growth being mining, construction and financial services. Privatisation of government-owned copper mines in the 1990s relieved the government from covering mammoth losses generated by the industry and greatly increased copper mining output and profitability to spur economic growth.
The country operates an open market economy whereby the business environment is facilitative of trade and investment for both local and foreign players. The Government also encourages and facilitates joint venture partnerships between local and foreign companies in the prioritised sectors.
The construction sector is growing and there is apparent activity around the country in the building of infrastructure, including construction of roads, hotels, shopping malls, and housing projects, among others.
Resource endowment
Zambia is endowed with various mineral deposits. Copper, cobalt, lead and zinc are the most developed. Zambia has about 6% of the world’s known copper reserves. Other minerals found in Zambia include: gold, nickel, iron and uranium. There are also gemstones such as emeralds, aquamarine, and amethyst. Zambia’s energy sector is endowed with enormous energy resources which include coal, hydropower, woodlands and forests as well as other renewable energy forms such as solar and wind. Zambia’s vast expanses of rich undeveloped land with free-flowing and easily accessible water provide extensive potential for agriculture production.
Priority Sectors of the Government of Zambia
The Government of Zambia is eager to diversify into other economic activities in order to reduce dependence on copper.
Considered as one of the most attractive destinations for investment in Africa, the sectors deemed to be the most profitable for investment and currently prioritised by the Zambian Government are: agriculture, manufacturing, energy, tourism and mining.
• Mining  – opportunities for mining equipment, components and ancillary services to the mines • Agriculture – there are vast expanses of agricultural land provided in blocks for farming • Construction – a budget of K5.6 billion has been set aside for the construction of roads in the 2015 financial year. • Energy – new entrants into the sector are being facilitated by banks. • Manufacturing – the sector is growing with new industries in the timber, wood and furniture sector, food and packaging sector among others being set up.
Agriculture
Zambia has vast fertile agricultural land. It is estimated that Zambia has 33,500 square kilometres of arable land. Agriculture remains the key priority sector in the growth and poverty reduction agenda of Zambia. Agriculture employs above 70% of the rural population.
Opportunities that are available include the supply of farming implements such as the hand-held, ox-drawn, tractor drawn implements, irrigation equipment and related technology, treated wooden poles for game and farm fencing in line with needs to con-trol diseases. The agriculture sector also presents opportunities in
Executive Summary
Extension services and livestock breeding such as cattle, goats and sheep. There are also opportunities in the supply of pest control for crops and veterinary services.
Tourism
This sector has a rich natural heritage, including waterfalls, rivers, lakes and a wealth of wildlife roaming in its vast sanctuaries. The most stunning geographical feature is the Victoria Falls on the southern border with Zimbabwe and is one of the natural wonders of the world. Zambia has nineteen (19) national parks and thirtyfour (34) game reserves which include the Luangwa and Kafue National Parks, Lower Zambezi National Park, Victoria Falls and Mosi-Oa-Tunya National Park among others.
The abundance of these natural resources offers opportunities for Zimbabwean players in the tourism sector to enter into joint venture investment partnerships with Zambian entities as well as to facilitate skills transfer and development.
Manufacturing
More than 90% of Zambia’s inputs are, imported, either in raw form or at the intermediate stage of processing, thus presenting opportunities for the supply of these inputs. With more than 70% of the population sustained by agriculture, agro-processing is a major priority. This scenario presents fertile ground for value chain development in areas such as leather, edible oil extraction, stock feeds and beverages, etc.
The Government efforts in supporting the manufacturing sector presents opportunities including plastic manufacturing companies in Zimbabwe to supply plastic packaging, shrinkable sleeves for different sizes, foil tops for sealing the bottles and multi-layered plastic film for extended milk shelf life with oxygen barrier.
Human Capital
In Zambia and the region as a whole, Zimbabweans are renowned for having specialist artisanal skills and expertise in several fields such as brick laying, carpentry, plumbing, tiling, thatching as well as boiler-making, quantity surveying, among other skills. Zimbabwean skills, work culture, hospitality and professionalism are also very well respected in the hospi-tality sector.  Opportunities and good prospects for various professions in these re-ferred fields can be taken advantage of as opportunities exist and need to be explored.
Financing and Exchange Controls
Commercial Banks in Zambia offer various services to businesses such as Letters of Credit, Trade Finance, project finance and also fostering of partnerships and matchmaking, among others. Some of the notable international banks operating in Zambia include Barclays Bank, Banc ABC, Stanbic and Standard Chartered Bank. In addition, with the emergence of a significant middle-class, there is need for new products and services provided by specialised financial institutions.
Zambia is one of the few countries that do not have exchange controls, hence profit and trade remittances are easily facilitated by the banks.

Trade prospects and opportunities for Zimbabwe

Zambian Market
Zambia has a relatively large domestic market comprising a population size of about 14.6 million (2014 estimate). It is a growing economy and politically stable environment. In the SADC region, Zambia’s major trading partner is South Africa which accounts for about 60% of Zambia’s trade.  Further, Zambia’s central location offers trading opportunities with all the eight (8) surrounding countries, which include Zimbabwe. Huge trade opportunities also exist through agreements/membership to COMESA and SADC.
Zambia’s principal imports
Some of the major products imported by Zambia in 2014 included: machinery ores, slag and ash, mineral fuels, vehicles, electrical, electronic equipment, and articles of iron and steel. The main regional trading partner for Zambia is South Africa and the Democratic Republic of Congo; Zimbabwe currently accounts for less than 2% of Zambia’s total import bill, despite the proximity.
The trade, economic and political relations between Zimbabwe and Zambia are very cordial and conducive for the development of greater economic cooperation through trade and investment.
The recent retail sector infrastructure developments in Lusaka and the Copperbelt has opened greater avenues for the supply of some of the manufactured products entering duty free into Zambia under COMESA or SADC arrangements.
Investment opportunities
Opportunities for investment can be identified in agriculture, horticulture, poultry, animal husbandry, property development (residential, commercial and industrial), timber processing, infrastructure development, tourism (lodges and hotels) and technical assistance/capacity building (skills development).

Recommendations
The study recommends a redoubling of efforts by Zimbabwean companies to take advantage of and to benefit from the growth of the Zambian economy. The proximity of Zimbabwe to Zambia and belonging to the two regional bodies SADC and COMESA is not reflected in the export volumes which represent less than 2% of Zambia’s total import bill.
The study further recommends a medium to long-term strategic approach by Zimbabwean businesses if they are to maximise returns and to develop beneficial relationships with their Zambian counterparts. Zimbabwe remains with goodwill in the Zambian market despite some of the previously supplied well-known brands having disappeared from the Zambian market.

At ZBIN we usually do our best to simplify business, we like to make sure that everyone understands business concepts in simple terms. We believe in making it simple, interesting and informative. So below is a simple analysis of what has happened to date since the introduction of the Bond Notes. We review the advice that we gave you and also update members of what we witness everyday being the people who are on the ground.

When the Bond Note was introduced your favourite business forum did one thing…we encouraged you to embrace it! We encouraged you to embrace the Bond Note and take advantage of the immense opportunities that it provided. Risky stuff from our side isn’t it? What if the prediction turned out to be false? Anyway we can refer you to the forum site archives and search for the post on Bond Notes.

Everyone had fears of the forgettable Bearer Cheque days where everyone suffered heavy losses when our currency lost value. It was therefore normal to expect the worst when the Bond Note was first introduced. Most were sceptical of the new currency despite assurances from the Reserve Bank of Zimbabwe. Most expected the new currency to lose considerable value against the US Dollar within the first few weeks of introduction but 3 months here we are and the Bond is still at par with the USD. We therefore got it right in advising our members to embrace the new currency in the short to medium term.

What gave us confidence to advise members to embrace the Bond?

The first reason is that it was not in the best interest of the Reserve bank to have more Bond in circulation as it was going lead to inflation and instant loss of value of the new currency. Print more Bond recklessly and Mangudya would be out of job. He would create more chaos than to leave the situation as it was. A rather simplistic view and I can see a lot of Economists shaking their heads, but this is the simple logic that we followed. The RBZ prints more Bonds and throw the nation into chaos. So print Bonds recklessly and drive out the USD from circulation (Gresham’s law) and create chaos for yourself and the nation at large guess who will be out of job?

Current Situation

The cash crisis is not far from over although there is marked improvement in cash availability with noticeable short queues at most commercial banks. Long queues only appear during month ends when most people receive their salaries and want to withdraw it.

1)    The Bond is still at par with USD

2)    High USD denominations such as $100 and $50 to have disappeared from circulation with only a few notes being dispenses by commercial banks such as Stanbic.

3)    Lower denomination such as $1 are fast disappearing from circulation leaving the $2 Bond as the only noticeable currency on the streets.

4)    The newly introduced $5 Bond Note is not in wide circulation

5)    Certain banks now require clients to fill out Bond withdrawal forms withdrawing Bonds

6)    Some banks not dispensing Bond Notes from Automated Teller Machines

7)    Money Transfer Agencies such as Western Union giving clients  the 3% incentive

8)    Most companies are failing to access forex approvals from RBZ for imports

9)    Some goods have started disappearing from local supermarkets

10) Price increases of certain goods in supermarkets

So what does the future look like?

Unfortunately we are not able to predict for now, it is not easy as we are going to rely on a number of financial models, research and analysis. We will need a lot of time inorder to once again come back with advice for our forum members.

Recommendation

We would like to urge the RBZ to review the 3% incentive offered to diasporans remitting funds to Zimbabwe. This money is not enough given that most of the funds being remitted range from $30-$500 at a time. Few folks are sending large amounts of money through money transfer agents. Most of the large sums are being send through formal banking systems. The problem with the banking systems is that they are not giving receivers the 3% incentive. This writer received $10,000 some time back in December 2016 on behalf or a relative who wanted to complete a housing project.  I asked my local bank manager whether I was eligible for the 3% incentive, he did not help referring me to the RBZ- i did a couple of follow up and gave up. So this could be happening to a lot of people sending money through formal banking systems.

So we will be back with a prediction of what the future looks like. For now maximise on the availability of the Bond and use the currency responsibly.