You would expect no one to be investing in a challenging economy like ours but guess what? There are some who are setting up businesses or even expanding!
In Graniteside opposite Sunningdale, a new wholesale is almost complete with the opening date expected soon. In Norton a Chinese tile making plant is ramping up production. Of course the previous article covered what is trending in Mbare!
Now lets look closely at interesting insights into those who are investing despite the headwinds.
First Key Insight: Entrepreneurship support—are you supplying goods to the ultimate consumer for consumption or you have incentives for entrepreneurs ingrained in your business model? The Peach Metro wholesaler is targeting entrepreneurs and a few ordinary consumers. They know entrepreneurship is the fastest expanding sector in the country and are targeting it.
The Mbare water tanks are mostly targeting farmers interested in making an extra dollar. Seed houses in Zimbabwe are opening new branches, veterinary products distributors are expanding in every town. In this tough economy, can you assist others to make money? If yes then you have plenty of room for expansion. Selling trucks, tractors or sedans?
Second Key Insight: Basic goods—the time for luxury goods is essentially not now. The population is going back to basics such as food, accommodation, clothes, transport and education.
Third Key Insight: Local manufacturing—the Covid-19 lockdown has severely impacted our South African supply chains. Goods are taking longer to arrive and therefore inconveniencing clients. South Africa is also prioritising locals first before exports. China which had become the leading supplier of goods to the region is still hamstrung by transport logistics.
To plug the gap, locals involved in small scale production such as soaps and other detergents. Some are taking advantage of the mealie meal shortages to set up grinding mills and supply local tuckshops.
Fourth Key Insight: Mining Industry Support—One of the fastest growing industries in the country is the mining sector especially gold and chrome. Some of our forum members are involved in the sector directly mining or supporting the sector with critical inputs such as power, processing chemicals, surveys and more. Some are even providing food and clothing to the hard cash rich mining entrepreneurs.
Fifth Key Insight: Construction—You need to conduct a visit to Mt Hampden if you are in Harare. Most brick making plants are operating at full throttle! Even small brick manufacturers in Chitungwiza are working over time! Does it make sense why the Chinese are setting up brick making and tile making plants in the country? No hardware store has closed shop over the past few months…infact more new hardware shops are being opened! The Covid-19 has taught locals about the importance of owning homes—urban, peri-urban and rural.
We hope this information inspires you and that you can add more insights through following the logic in the article. Our books on Business Opportunities and Digital Marketing give you further insights into local opportunities and include experiences from those in the sector.
