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Diaspora Matters

Diaspora Matters

How to get your products sold in leading supermarkets

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So how do you move huge volumes of your products through leading retail shops? Dont you think this question should have been part of your high school topics? Getting an assignment to approach local shops and engaging them in pushing your products?

Worry not if you missed this at high school and college. Our forum recently tackled this important area and we had brilliant responses which we feature below;

Frank Mzondiwa What I know is you need to have

A registered company with tax clearance

Barcode your products

Quality packaging

And also your products should have a huge probability of being bought.

So it’s best to start with small supermarkets until you have a huge clientele so as to convince the buyer that your products will move than just to waste space on the shelves

Harry Nyakatonje Good rapport with the buyers, products should be of good quality,if u need licensing or registration do so,be tax compliant,have capacity to replicate the orders they want in as many branches….be able to be consistent….don’t push for cash,hear out their terms….some prefer that u leave a product then they pay u later to reduce risk on their side….to reduce risk on your side employ merchandisers and brand ambassadors,run promos so that the shop sells more and u have good turnover …. repeat until u no longer have to introduce yourself……don’t be greedy if let’s say u supply oranges ,u run out of stock,take your friend’s orange if they make the cut for consistency

Above all be good with people,it doesn’t matter u own a farm,a company ,the latest SUV ,neat suits…… Be humble ,wear the perfume of the buyer to fall in their favor….you don’t have to bribe but be accommodating , professional and friendly

On large chain store remember they are big ,head office centralises buying power so be ready for beaurcracy and redtape, patience is needed .You may be lucky to be given cash,they may ask for your last price ,don’t lower your price at once,flinch a little ,hold your ground,tell them to make an offer and top something on that offer knowing it’s in your comfort zone, effective negotiation skill.I know most things are going paperless but at least have a name ,a receipt book, invoice book etc

Know your numbers and product.. .do not be like a fly by night… people will undervalue you….know in figures how much u can produce and supply….if there is a possibility of venture capital or franchise….we all have seen OK Pot “o”gold products…. sometimes they want it to carry their name coming from your factory….if u sell strawberries know what strawberries do,how to best preserve etc…..carry samples …hapana anoda kunzi mastrawberry ekwa OK haana taste.

Mohamed Adam You need to be prepared to give credit unless its a product that they see does well for them, they then pay you on delivery. In today’s economic system, i would not advise one to start with trying to get their products in these shops, buy the time they pay you, your money would have halved in real money.

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Who was auditing NSSA?

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The initial inquiry on state capture in South Africa claimed the scalp of an unlikely suspect-KPMG! So as the nation reviews the damning audit reports by the Auditor General, one of the questions we should be asking is ‘Who audited NSSA? What role did they play in the plunder of public resources? We fully appreciate the critical role of auditors and the limitations on fraud detection and reporting. But how far are they liable in cases where rampant corruption would have been unearthed and yet their opinions could be at variance with what would be on the ground?

Looking at NSSA, the public may be interested in knowing the composition of the audit committees at the institution. What was their role? Who were the internal audit members? Were they getting salaries? How was the corporate governance culture at the institution?

Zeroing in on the finance department-who are or were the finance directors? What are their qualifications and experience? Which accounting and auditing bodies do they belong to? Did they follow their professional ethical standards? Are professional accounting and auditing bodies going to sanction their members implicated in various fraud cases perpetrated at various entities across the country?

Around this time last year, 3 local NGOs had their funding cut by a leading humanitarian organisation. One of the directors of the organisation publicly defended her organisation saying they had recently conducted an external audit where their books were determined to be clean or unqualified. Who were the auditors of these organisations? Critically, who were managing the finances?

Are audit clerks remunerated enough? How are auditing firms handling the undue pressure on their staff to be corrupt? Do they have reporting mechanisms for stakeholders to report and bring evidence of corruption?

The Institute of Chartered Accountants in Zimbabwe is responsible for the training of local auditors, they also register auditing firms. How far is the institute going in terms of professional development and protecting the integrity of the profession?

Are they aware of the challenges and limitations in the profession? How are they responding to some of their members implicated in corruption? Do they ever solicit for input from members of the public?

The same applies to all finance professional bodies such as the Institute of Internal Auditors, ACCA, CIMA and CIS. Are they following developments in the country? Are they aware that some of their members could be facilitating fraud? Are they taking disciplinary action?

The accounting profession is well known for integrity..it is responsible for the stewardship of resources for shareholders, the government and tax payers. To what extend should the public rely on their work? How genuine are audit reports from Zimbabwe?

We expect all finance professionals to self introspect and review ethical guidelines. We hope to see action from all auditing firms reviewing how they conduct business and protecting the image of the profession.

We look forward to seeing ICAZ being hauled before the parliamentary committee and answering various questions pertaining to their members and audit firms. If the auditors of NSSA issued clean audits despite the rot at the organisation, then they too are liable. They should be penalised and forced to return back all audit fees plus a hefty fine. Some may need to be deregistered in order to send a clear warning!

A discussion within our forum on the issue showed that the rot in the auditing profession has reached alarming levels. Auditors in the country are easy to bribe with some offered free air tickets or jobs for sweeping corruption under the carpet and issuing clean audit reports. One wonders what would have happened had the Auditor General Office not carried out second audits?

How many have mechanisms to review -audits? Just how reliable are audited statements from Zimbabwe? As the country fights corruption, we need all those found guilty caged plus restoration of integrity of the accounting and auditing profession.

This is a sensitive area but South Africa did it and all audit firms are now wary of the risks associated with unprofessional behaviour. We need to start talking loudly about the rot in the sector in order to restore confidence.

We go back to our initial question-who signed off the financial statements at NSSA? Which accounting or auditing professional bodies do they belong to? Who audited them? Is the audit  firm fit to remain operational? What steps is ICAZ going to take?

Food for thought.

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Diaspora Matters

How to open and run a bottlestore in Harare

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In this article, we share experiences of starting and running a business in Zimbabwe. It is not easy to rent commercial properties without hurdles. Here is an account from one of our members.

Iam a Warren Park boy, born and raised in Highfields and later on moved to Warren Park.

So one day at Mereki, met a youngster from the hood-Tinashe and we started reminiscing the good old days.

Our thoughts got deeper and we started asking why we were spending money at Mereki? Why not collect money instead? Who was collecting all the mula at Harares premier entertainment spot?

So in 2010, we identified a place in Mufakose and entered into a partnership. The place which had been closed had little value so rental for the bottlestore and butchery was pegged at US$600.

Our strategies
1) Mereki was popularised by the late chairman of Dembare(Nhekairo)..after every match, he took Dembare to Warren Park and soon fans trekked to the place. So as outsiders, our joint needed community ownership. We formed a boozers soccer club…bought soccer kits and after every match they would troop to our place with a crate available for free. This was the master stroke….overnight our joint became popular.
2) Spruced up the place…new paint, gazebo, braai stands etc! In the ghetto they appreciate good things…add a bit of class and u have more followers.
3) Experience Economy: At Mereki we have ladies who braai meat such as the popular Mai George but our model was not to copy and paste Mereki in totality…we had seen that at Highglen men enjoyed braaing own meat, drinking and discussing stories…basically whiling away time whilst networking. Its a pity Old Mutual banned the guy who had brought the concept…so we adopted a working model and boom….what a magic bullet! 
4) Hararians love good parking space…Mereki, Zindoga and Highglen…we were fortunate to have plenty of this at our place!
5) Providing music works against experience economy…many want the freedom to play own music. So we balanced this by only hiring a professional dj during weekends.

Results?
Revenue jumped from USD1,000 to USD25,000 per month in 6 months. So popular was the place that we literally became the entertainment place of choice in Mufakose. Sons and daughters who had moved North of Samora started trekking back….Ko kuGhetto ndokune yese ka? Ghetto fabulous….Mfombi crew never disappoint.

Our catchment or area of influence included Kambum, Warrenz, Budaz, Crowborough and others.

Place to chill with others whilst enjoying good stories…soccer, economy (we avoided politics)

Then…
We didnt have a formal lease agreement, the owner had refused. Then one day he came to the place and we saw him beaming with a smile.

Vafana zvirikuitaka? Tikati yes mdara….zvikanzi good makapenga vafana vangu. Tikati tinotenda mdara.

Zvikanzi eeeh but rent sevanhu vakuita mari svitsai pa thaza…

We signed and paid …a small dent on the balancesheet and income statement.

We continued on our upward trajectory then 3rd month takuda kunobhadara rent….up to USD 1800. Fourth month up to USD 2400.

You can do the maths of how much he was demanding by the 6th month🤷🏾‍♂

We eventually came to the decision to close down! We could not cope with the calculated plan to chase us from the place we had done so well to spruce up and make a preferred venue of entertainment…

Tinashe decided to fly solo and opened another place at Kambuzuma 2 Shopping centre. I continued to support him but insisted on a long term lease.

Our former clients followed but in the 4th month the owner of the place came and demanded to also sell her alcohol in the same pub!

Yes kuti iwe wotengesa rako doro…ini rangu? How bizarre…

Zvikanzi ukada kuramba ini ndiri politically connected!The message was loud and clear…move out of my place!

Distraught and heartbroken….Tinashe sold everything and closed down. He headed to Kadoma to try his hand with gold mining.

What became of the former places?
The new tenants were attracted by the huge numbers we had built. They didnt know how we had built them nor how we helped sustain them.

They didnt know our experience of seeing Mereki start and grow…they had no connection with the community. They didnt know the community was angry with their take overs…they totally shunned them.

As for me…I vowed never to rent a commercial stand from anyone!

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Diaspora Matters

The Vegetable Revolution in Zimbabwe

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The tobacco selling season is almost coming to an end in the next few weeks and most tobacco farmers in Zimbabwe are swearing never to go back into tobacco production. Production is expected to drop even further next year as reported by the Tobacco Industry and Marketing Board (TIMB) that seed sales have dropped by 55% as compared to the same time last year 2018. These sentiments have largely been driven by the unstable economy and the ever-changing monetary policies which caused significant losses for most small scale and even large-scale farmers. Off -late horticultural production or rather fresh vegetable production is being spoken about and seems to be on the rise in Zimbabwe. This could be a lucrative alternative.

According to the Ministry of Lands Agriculture, Water, Climate and Rural resettlement, fresh vegetable production has grown sharply by 46% in the last 2 years to date. The area under vegetable production has also increased by a staggering 25%. Carrots production has increased by about 85% in 2019, followed closely by our all-time favourite funeral relish as my father used to call it, cabbage at 55%. These figures clearly show that there is a huge demand for fresh produce on the local market and international market and hence I strongly recommend that every farmer with the right capacity should think about growing fresh produce. According to the same report, pea production also increased significantly by 47%, just to shed more light, 98% of the peas produced in Zimbabwe are exported which translates to good profits. However, production for export requires a separate article due to the complexity of the accreditation required which we will talk about in detail in the next article.

You will be surprised at the demand that exists for fresh fruit and vegetables on the Zimbabwean market. You may be selling cabbages from your back yard small garden out of the boot of your car why not commercialise it. A lot of individuals are leasing out pieces of land in and around Harare why not take up the opportunity to expand your small enterprise before you know it, you will be supplying your produce to major retailers in Zimbabwe. There is an English adage which states that the earliest bird catches the worm, this is the right time to invest in vegetable production. Perhaps a few tips to help you plan

  1. Have a market – Do not grow anything commercially with no market this may result in huge loses. Talk to your market (e, g supermarkets) ask what you can grow for them, If you can secure a contract the better.
  2. Grow your crop out of season, this usually is possible if you have a controlled environment such as a green house. You will get good prices as you are able to sell when product is limited on the market.
  3. Have adequate skill, yes, we all have at some point been able to manage a small vegetable garden at home successfully, however in commercial production a significant amount of skill and training is required. Employ someone who is or get the training yourself.
  4. Reliability, like any business reputation is everything, one unhappy customer has the power to destroy your significantly damage your business. Supply the agreed quality and amounts at the promised time. Over the years I have seen a lot of good farmers loose lucrative contracts due to greediness and unreliability.

Come and Join us on the 3rd of August 2019 for our ZBIN meet and greet party in Chitungwiza, Harare Zimbabwe as we discuss and share ideas on more business topics. 

  • Emmanuel is a qualified Agronomist with more than a decade’s experience working in the agricultural industry and development sector. You can contact him on edndsep@gmail.com

Article by

Emmanuel D.N Dube

ZIBN Agronomy correspondent

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Diaspora Matters

Business and the use of Juju in Africa part 1

maiazuka

When it comes to business books and other resources, the formula is clear cut-everything is scientific! Measurable, can be calculated, reviewed and analysed. The formula for calculating profit is the same-the formula for digital marketing success is straight forward. Now how about the use of the underworld in business? Is business spiritual?

Unfortunately you are never going to see this covered in business books, you will not find academic research papers on this area and yet it plays a huge role in the business sector across the continent.

Our forum recently tackled a case of a Zimbabwean who got juju from Mozambique to boost his business. Everything went according to plan as he got instant riches enabling him to buy 2 kombi taxis and 1 private vehicle. His repair business in town experienced rapid growth fuelled by juju.

Things started going southwards when he failed to abide by the juju conditions which required him never to sleep between 6:00pm and 6:00am. He accidentally slept and one child died. Did this several times and 2 more children followed!

Realising his blunder, he returned to Mozambique to seek help from the sangoma who had initially helped him but he found him gone with no traceable references. The businessman then sought help from several prophets but to no avail.

The trends

Juju use is widespread in the business sector.

Juju use results in instant or miracle success or wealth.

Wealth created by juju is short lived.

The cost of juju includes loss of lives and more stress for the concerned business person and immediate family.

Once one has taken juju then they have crossed the Rubicon, one cannot return it to the source.

What science fails to prove

The businessman all of a sudden had a lot of clients as his business enjoyed rapid growth. What was attracting the new clients? What impact did this have on other businesses? How many closed as most clients headed to this juju inspired business?

Most popular mhikos (covenants)

Sleep related

Not sleeping during the night

Not sleeping the day you woke up

Business premises related

Not entering business premises (owner remains in car)

Certain offices or rooms that can only be entered by the owner

Children related

Children who do not marry

Children who are barren

Children who give birth to particular sexes

Children who die in mysterious circumstances

Deaths at a particular period during the year

Others

Not visiting hospitals

Not attending funerals

Not giving visitors food

Relieving in the bush

Not helping close relatives

Being unkempt

Sleeping with many partners

Please note anyone showing any of the above signs does not necessarily mean they have mhiko to abide by as this information is general. What is unmistakable though is there is a visible pattern which can be plotted on a graph.

The practitioner must religiously follow the mhiko or face dire repercussions. Please also note that there are some innocent people who can give monies which become fixed and they can encounter a sudden fall in wealth leading to some to speculate that they have been using juju.

The late Sekuru Ndunge from Chipinge is said to have a mysterious chicken which was used for juju purposes. Visitors to his place interested in juju had the chicken brought and picking maize seeds. The number of seeds picked equated to the number of years one lived a wealthy and luxurious life style. At the end of the period-one faced sudden death mostly through road accidents. The story of Bothy is well known by Mutareans.

Surviving juju inspired competition in business

The cost of using muti in business is steep high and those not practicing it risk early business closures. There is no empirical evidence to support this but discussions in our forums shows some who encountered this really struggled.

To survive, follow sound business principles and practices. It always work in the long run in developing a sustainable business model. Do not panic when others come and inexplicably dominate the industry-in most cases its just a flash in the pan.

Concentrate more on developing close relationships with your clients. Deliver top quality services on a CONSTANT BASIS. Clients may temporarily switch to juju inspired competitors but when the dust settles, they will trace their way back!

You are not going to find this in business teaching or books and yet its reality. Its practically impossible to carry out a research survey to find the prevalence of juju use but by listening to reality shows or evangelical shows on television-one gets an insight into the dark world of juju and business.

Give us your own insight into this practice.

Muito Obrigado

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Seven lease agreement clauses you should take note of

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A lease is an agreement between two parties for use of an asset. There are certain things even the most basic lease must include. A lease agreement is an essential document between landlord and tenant. All leases are not created equal. There are certain basics a good rental contract must include. This article will teach you the seven most basic clauses your lease agreement must include.

  1. Identify Landlord and Tenants

Every lease agreement must identify who the contract is between. In the case of a lease for rental property, this agreement is between the landlord, and/or the landlord’s agent, and the tenants that will be occupying the property. All tenants over the age of 18 should be named on the lease. The address of each party should also be included.

  • Rent

A lease agreement should specify the amount of rent, when it is due (typically, the first of the month), and how it is to be paid, such as by mail to your office. To avoid disputes a lease agreement should typically, spell out details such as:

  1. acceptable payment methods (such as bank deposits, cash etc); and;
  2. whether late fees will be due if rent is not paid on time, the amount of the fee, and whether there is any grace period.
  3. Any Deposits and Fees

Security deposits are one of the most commonly disputed items between landlord and tenant, so in addition to defining the amount, lease agreements should also include how the deposit can be used, any non-refundable fees (such as cleaning fees), and how the deposit will be returned after the tenant moves out.

  • Description of the property

The lease agreement should have a description of the property controlled by the lease agreement. It may be as simple as the address and apartment number but it must be identified or the agreement cannot be enforced.

  • Lease dates and termination

The start and end of the lease should be well captured in the agreement inclusive of how the agreement will be terminated by both parties

  • Disputes resolution

A lease should clearly provide for what parties should do in the event that there is a dispute. It is advised for parties to attempt to resolve disputes on their own before opting for litigation or arbitration. This is more cheaper and more efficient.

  • Breach

Often times when parties sign an agreement one of the parties can refuse/neglect to perform some obligations. Breach occurs when a party to a contract fails to fulfill its obligation(s) as described in the contract. A breach clause should provide for what happens when either party breaches the contract.

Background of author

Namatirai Muzarakuza is a holder of a Bachelor of Laws (LLB) from the University of Zimbabwe and a Post- Grad in Corporate Governance and Strategic Leadership. She has over 8 years’ experience in private practice, banking and finance as well as corporate law. Her contact details are namaruzvidzo@gmail.com

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The importance of written business contracts for entrepreneurs

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Often many a time entrepreneurs come up with brilliant ideas that could literary transform their livelihoods as well as add value to their respective communities and the country as a whole. However lack of written business contracts has seen many an entrepreneur losing money as well as potential business. Lack of written contracts has also seen a lot of entrepreneurs wasting time and money staving off unnecessary lawsuits.

What you need to know about business contracts

  1. What is a business contract?

A business contract states the terms and conditions of any business transaction, including product sales and delivery of services. This helps the parties involved to avoid any type of misunderstanding that may arise in the absence of a written contract.

If you are collaborating with a friend on your new business, then it is all the more important to create a written contract. This will help you avoid any misunderstandings and consequently will save you from the rifts that might end your friendship.

  • How about an oral agreement?

If you have an oral agreement, you might forget some points that you have agreed on verbally with the passage of time. But with a written agreement, all the terms and conditions are crystal clear at any point in time. Further, you can always amend the agreement with the consent of both the parties.

Many people are unrealistic when it comes to creating contracts. You should not take it for granted that the threads of your relationship (business, personal or otherwise) may not be strong enough to face crises. The fact is that disagreements can and do arise, especially between friends and family members and especially when a close personal relationship is intertwined with a business one.

When you get into a verbal contract, you may not mention things that seem to be obvious. It is these issues that usually create trouble in the future when you want to enforce any agreements that have been made. Conversely, when you get into a written contract, you and all the parties involved are cautious enough to include all the details, making disagreements later on far less likely.

Written contracts are also much easier to enforce should you end up in court.

  • Essential elements of a Contract

A contract consists of an offer and acceptance and sometimes, a counteroffer. The offer constitutes a statement that specifies that a person or business is ready to enter into an agreement on some specific terms and conditions. The acceptance comes from the person who accepts the offer on the basis of those terms and
conditions.

A person might not agree to the specified terms and might present a ‘counteroffer’ within the clauses. When the person who made the offer, accepts the counteroffer only then is the contract is formed. You should also check whether the person who is signing the contract is authorized to do so or not.

Also, both the parties that are getting into the contract should be mentally competent. In other words none of them should be a minor. The agreement should have a lawful purpose.

The essential elements of a business agreement are:

  1. The parties to the agreement

 In other words, the contract lists your business name and the name of the other party, whether it is a customer or a vendor.

  • What each party is going to gain from the agreement

This is referred to in legal vocabulary as “consideration.”

  • The main terms of the contract

 For example, what each party is promising to do. Obviously, it is extremely important that this part of the contract be very specific and include such things as the work to be performed, the price to be paid for the work, how and when payment will be made, when the work will be completed, how long the contract will be in effect and whether either party is “warranting” anything.

  • Additional terms

These should probably include conditions under which either party can terminate the contract, whether either party can transfer or assign the contract to another person or company, whether disputes arising from the contract may be arbitrated or mediated, payment of Lawyer’s fees if one party breaches the contract, an address where legal notices can be sent to each party, and which country law applies if questions about the contract arise.

  •  Execution

 Be sure both parties sign the contract and that the person signing (if he or she is representing a company) has the authority to sign.

  • Delivery

 Make sure each party receives a copy of the final signed agreement.

  • Date

 This is the date the contract is signed.

  • Why contracts for your Small Business

All entrepreneurs who had bigger visions such as Strive Masiyiwa formalized their business at an early stage. Entrepreneurs need to have a ‘bigger picture mentality’ in order to reap rewards later on. As a business owner, it is very important that you get into the habit of always using written contracts, especially when it comes to performing services for clients. This is because you probably do not have deep pockets should you be sued. You also probably do not have much time to expend on litigation as you should be spending a lot of time setting up your business and building your brand.

If you use written contracts, it is also far less likely that you will end up in court. Your clients will be much more inclined to work with you to find a solution and work things out. Also business contracts do and should contain dispute resolution clauses which aim to make litigation or arbitration the last resort in solving problems.

Conclusion

Business contracts are an important part of doing business, but they must be carefully worded to ensure everything is exactly how you want it and the other party agrees to, before you both sign on the dotted line. That way you avoid getting into trouble and business can be done quickly and efficiently as per the contract with everyone knowing exactly what is expected.

The fine details in verbal agreements can easily be forgotten over time and then there will be disagreement and discord with no one knowing what they have to do. It is important to read all the fine print in every business contract and make sure you understand it before you sign on the dotted line. Written contracts are for your protection. Use them diligently, and your customers will see that you are serious about doing business the right way.

About Author

Namatirai Muzarakuza is a holder of a Bachelor of Laws (LLB) from the University of Zimbabwe and a Post- Grad in Corporate Governance and Strategic Leadership. She has over 8 years’ experience in private practice, banking and finance as well as corporate law. Her contact details are namaruzvidzo@gmail.com

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African Entrepreneurs and Creativity

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One of the major reasons that limits African entrepreneurs is lack of creativity. Majority of entrepreneurs specialize in reinventing European and American business ideas without considering local factors that might hinder implementation. Consider what happens in Africa whenever there is a successful venture or IPO in the US. When Facebook went public, we saw Zimbabwean social media ventures like Wangu, Shaa and others. In 2019, Lyft and Uber went public and we are witnessing new startups like Hwindi, Vaya and Toda Driver apps serving a tiny market in Harare. Only a few survive in African markets because they have an American or European approach to African problems. 


Creativity is an important skill in business. It ensures sustainability of any business and guarantees a huge competitive advantage over competitors. Many business students and entrepreneurs believe in a philosophy that, to be successful, one has to solve existing human problems and needs. However startups like Facebook, Apple and Amazon created a market by making their services a need.


Creativity breeds innovation. Without innovation old businesses are facing natural death. Think of Kodak, Nokia and Xerox, how they dominated the world markets for nearly a century but pushed out of the game by innovations from new companies like Danger (who introduced Android software), cannon (Digital cameras)  and Apple Inc. (Personal Computers, Smartphones, Wearables). They underestimated the new innovations of the market and assumed them to be fads the market will never become loyal to. 
One might argue that globalization standardizes markets but there is need to tailor-make products and services to suit the target market. For instance, WeChat is a Chinese version of WhatsApp but they went further to include local language, games, market and Alipay making it the darling of the local market. We can also refer to Baidu and Alibaba, the conclusion is the same. Copy, localize and include great improvements to the product to make it appealing and unique to the market. Lyft, a major competitor to Uber, is a borrowed idea from Zimbabwe (the original name of the company was Zimride). They improved the idea to make it work in the first world.
Coming up with original ideas might also lead to African Unicorns (startups with $Billion valuation) as the idea  can be easily adopted in other countries. A good example is EcoLedger in Zimbabwe, an app which prepares financial data from mobile wallet transaction messages. With 100 000 Google play downloads (android can also allow external apk installation, it’s actually more than that) and an estimated conversion rate of 5 to 10% of customers paying $3/month, they can easily scale this idea to other countries  and add more services considering local market factors. 
However, African entrepreneurs need incubators and accelerators, mentors , venture capitalists and angel investors to be successful. 


Golix, a Zimbabwean cryptocurrency exchange, missed an opportunity to expand to other regional countries before there were affected by RBZ ban. At one point, a continental blog estimated their value to $23m and enlisted it on the most promising African ventures. They also had the opportunity to introduce cryptocurrency credit cards like Bitpay or crypterium, and take over the remittance market from  mukuru, Ecocash or bitkesh. I believe that was the turning point for many entrepreneurs since financing is a major problem in Africa. Entrepreneurs could crowdfund on a blockchain through ICOs (using the exchange to list local tokens) and bypass venture capitalists or local IPOs. Given the fragility of our economy, it could make sense than raising RTGS capital.

 
African entrepreneurs need to come up with innovative ways to raise capital, grow investors wealth, expand to regional markets, business and play long games. At times, lack of patience and quick-profits kill many promising businesses. How many African entrepreneurs build a business for more than 10 years? How many African business are using freemium models? How many are willing to own 30% of their ventures and allow investors to fund the business? 


In the next posts, I will write about Business Models, Ways of raising capital, and local business case studies. If you have any suggestions or comments, contact  through an email adchakara@gmail.com.

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Fraudsters invade fresh produce exports

frau

Last week I wrote an article on making farming make sense and I am happy to say that I have been receiving a lot of inquiries and referring farmers to professionals who can assist them. The current unstable economy in Zimbabwe has left most farmersthinking of venturing into fresh produce export which is a multi-million-dollar industry. According to Zimtrade Zimbabwe exports to several countries in Europe earning the much-needed foreign currency. It is quite sad to note that “Magweja”,as they are notoriously known in the tobacco industry,or fraudsters have invaded this sector as well. I met one farmer just last week who will call Mr Grant (pseudo name)who was fleeced of close to 15 000 USD by these middlemen in a bid to acquire “paperwork”, to export to Europe. It was such an elaborate scheme even the most alert individual could have been easily be hoodwinked.

Firstly, lets cover the basics, for one to be able to export fresh produce from Zimbabwe, one needs to have Global GAP certification as a minimum requirement. This certification ensures that the farmer adheres to global standards and practices whilst producing the crop. Other markets may require extra certifications as well which I will not get into detail on at the moment.Back to Mr Grant, this guy owns a vibrant farm just a few kilometres out of Harare with all the basic infrastructure required for farming operations. He was approached by an individual name supplied, who offered his services to assist him to be able to export. Initially he was asked to pay 2 000 USD to get negotiations started and then another 4 000 USD to pay for export licences, 7 000 USD for the Global GAP certification. These guys even had all the supporting documents as proof of payments which were all fake by the way. As usual the relationship eventually ended in the “agent”, being unreachable and just vanished into thin air. The truth is, it will cost approximately R17 000 to get a Global GAP Audit done depending on the company, this includes air fare, hotel etc for the auditor from South Africa. This translates to about +/- 1 400 USD which is a far cry from what Mr Grant paid.

It was after hearing this harrowing story that I decided to raise awareness on this subject. The major obstacle for most farmers is the lack of information or rather where to get information. I would strongly suggest contacting ZIMTRADE located in Harare they will gladly furnish you with the appropriate information and refer accordingly. One can simply ask old faithful google for directions and contact details online or simply visit their website it has a great deal of information.Also, before engaging a consultant always request for references before engaging him or her, a little background check will help as you are bound to come across a lot of bogus individuals looking to swindle you off your hard-earnedmoney.

  • Emmanuel is a qualified Agronomist with more than a decade’s experience working in the agricultural industry and development sector. You can contact him on edndsep@gmail.com

Article by

E. D.N Dube

ZIBN Agronomy correspondent

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