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Diaspora Matters

Complexities of Assisting SMES in Zimbabwe

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The last time a world survey was done by IMF—Zimbabwe came second when it comes to the informal sector in the world, just a few inches from Bolivia.

The second biggest per capita informal sector under the sun!

And you don’t need to look too far—your home, street, church, workplace, social media. Even at traffic lights—vendors everywhere. Maybe you could be forgiven for thinking those formally employed are sticking to employment business?

Think again as even ministers have farms where they have some weekend business to do. Pastors, lecturers—noone is spared. Everyone looking for money. Some you may not even see them like the diaspora involved in business activities back home.

Our colleagues working at cruise ships also join entrepreneurship when back home.

This brings us to an important question—How can the government support entrepreneurship in Zimbabwe?

The number is too big from Siakobvu, Chiredzi, Nyamapanda, Beitbridge , Plumtree, Dotito to Mt Selinda.

Current interventions:

  • Support to agri-preneurs in rural areas and farming regions
  • Support to artisanal miners
  • Developmental partners support to villagers

It is easy to track progress in terms of support to certain rural regions—support from the Government and Developmental Partners. Be it inputs in agricultural initiatives such as Pfumbvudza or Development Partners such as CARE, GOAL, EU and others.

The Headache: Urban Areas

Take a walk in Epworth, Dzivaresekwa, Mzilikazi, Makokoba, Mkoba, Vhengere, Chipadze, Waverley, Dombotombo, Sakubva, Chikonohono and others. Pick random entrepreneurs and ask what sort of support they have received in their business endeavours?

  • Ask them the sort of support available to small businesses?
  • Ask them about organizations that support small businesses?
  • Ask too if they know anyone who has received support in their businesses?

Out of a survey sample of 100, count yourself extremely lucky if 2 interviewees say they know of any organization that represents small businesses. Technically no one has received support. Small businesses support is non existent in Zimbabwe!

Of course this is not to belittle the sterling work done by Old Mutual, Women’s Bank,  University Innovation Hubs, Zimtrade and others—but whatever great work is going on—the folks on the streets don’t know about it.

We need to reach a level where identification of support institutions is as easy as Lobels Bread.

Identification through direct benefits—or knowledge of someone who did.

The focus on providing professional workspaces is noble—but the numbers that need support is overwhelming. We are talking of +9 million entrepreneurs.

Recommendations

The ongoing SME survey a great starting point—although a few are aware of it. Am still to bump into them.

  • Bring influential stakeholders to the table—Relevant Government Ministries,  ZIMRA, Councils, Universities, Financial Institutions, Mobile Telecommunication Companies, Public Media, Development Partners, SME Associations, ICT Leaders, Pension Funds, Medical Societies, Insurance Companies, Diaspora Communities.
  • Brainstorm on how you can leverage on AI to reach out all corners of Zimbabwe including the diaspora—leave noone behind and this is where Mobile Telecommunication Companies, ICT companies, Financial Institutions and Public Media will come in.
  • Using AI—find innovative ways to address the needs of entrepreneurs. Access To Capital, Opportunities such as; grants, loans, tenders, workshops etc. How can Mukuru help on remittances for business start-ups? How can Ecocash on Roundtables? How can FBC Amarounds reach to small businesses in Tsholotsho or Nkayi?
  • Development partners could bring some of the best tech expertise and skills from home countries. What is it they are successfully doing locally and internationally? What are the best practices that can be implemented nationally?

We believe Zimbabwe needs to appreciate that it’s a unique country as second world best—and therefore should implement world best approaches to entrepreneurship support. We cannot 100 %copy South Africa—they are not world best. Yes they have some of the best support models and we could pick a few tips. We need models that brings world leaders to Zimbabwe and learn from us. Countries going through the same challenges need to learn from us.

And the good news? It doesn’t cost much but will bring immense economic development benefits.

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Diaspora Matters

From feathers to fortune: Shurugwi poultry farmers thrive

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Dumisani Dube | Harare | Zimbabwe A group of 10 young farmers in Shurugwi’s Ward 11 are reaping the rewards of venturing into poultry farming, transforming their livelihoods and contributing to the local economy.

The farmers, under a contract farming arrangement with a leading poultry producer in Gweru, currently maintain an average of 7,000 broiler chickens in their modern fowl run. This venture, initiated in 2020 with support from Technoserve and funding from Anglo American Unki Mines, has seen remarkable success.

“We had very little experience when we started,” recalls one of the farmers. “But thanks to the technical guidance from Technoserve and the offtaker, we’ve managed to significantly reduce mortality rates.”

The offtaker, a key partner in the project, provides all necessary inputs, including day-old chicks and feed, while also offering continuous technical support to the farmers. This ensures optimal bird health and maximizes productivity.

The project’s impact on the farmers’ lives has been profound. With consistent earnings of between US$2 900 and US$4,100 every six weeks, these rural residents have experienced a significant boost in their income. This newfound financial stability has enabled them to send their children to school and improve their overall living standards.

“This project has completely changed our lives,” another farmer enthused. “We now have a sustainable source of income and a brighter future for our families.”

The initial investment from Anglo American Platinum, Unki Mines social development program, which included the construction of fowl runs, boreholes, and installation of solar lighting, has proven to be a catalyst for economic growth in the community. The project is now self-funding, with the farmers reinvesting their profits to expand their operations and increase production capacity.

While challenges such as weather fluctuations, charcoal fuel shortages, and recent water scarcity have been encountered, the farmers have demonstrated remarkable resilience in finding solutions. Their strong self-governance structure, guided by a strict group constitution and bylaws, has played a crucial role in ensuring the project’s sustainability and success.

This inspiring story highlights the transformative power of community-driven initiatives and the potential for rural communities to thrive through sustainable agricultural ventures. It also highlights the importance of group work in achieving great success. The group also highlighted that access to financing is not much of a challenge once a financial institution sees their books. Interesting enough is that they have had several financial institutions offering to finance them which is something rare in the current economic climate especially for small holder farmers. This is a model which should be copied and implemented in other sectors as well.

Dumisani is an agricultural & compliance expert and lead consultant at fresh solutions Africa. He can be reached via email at freshsolutionsafrica@gmail.com.

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