Diaspora Matters

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

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

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.

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

A couple of years ago I wrote an article on cabbage production which received rave reviews on this website. My inbox was inundated with emails from many would be fresh produce farmers most who shared some very spectacular ideas on how to run such a project viably. I was fortunate enough to be invited by one of the farmers who took the free advice from that article and utilised it fruitfully. However, todays article is not about this farmer but is about a certain aspect of this farmer which I think every would be or current farmer needs to adopt in order to be successful in farming.

Most of us have turned to agriculture as a way of getting that side hustle extra dollar which I must say does come in handy in this harsh economy. This bracket includes bankers, cooperate executives, etc. the list is inexhaustible. Yes, one may be an expert banker but lack farming expertise. To quote one of my Lectures back at University decades ago, “owning a farm does not make you a farmer”. I am sure most of you will agree with me that you have seen some well-resourced entities running a farming operation into the ground. The major reason being lack of expertise, it is very important for every farming enterprise to have highly skilled employees. Most of you will agree with me that highly skilled labour does not come cheap, this is true even in the field of agriculture. A good point to take on is that as the farm owner make sure that you pay your most valued employees more than you pay yourself. I know some may not agree with this notion but believe me it’s a tried and tested one, “IT WORKS SIMPLE”. A highly skilled and happy (well remunerated) farm manager will be loyal and will put in the extra hours in order to achieve set yield targets which translate to enterprise profits. If you can throw in some bonus extras at the end of the season. Back to our main subject, most of us probably think farming is a simple exercise, of which it is if you know what you are doing coupled with the right skills. Although it may be a good idea for those would be farmers without any farming back ground to take on some short courses in farming as it will give them a good appreciation of the industry, it is still advisable to hire  the right highly skilled individual to take on the task of running the business.

 Recently I had the opportunity of having this discussion with one of the leading agricultural consultancy organisations in South Africa. They were hired by one farmer here in Zimbabwe to consult periodically on their blue berry project at a very huge cost running into thousands of Rands. The point to take on here is that the farmer has invested in the skills of a consultant despite more than 30 years in the business. This investment in skill has seen the farmer growing this high value crop profitably. I know probably the small-scale farmer reading this article is saying where do I get the money to hire consultants from South Africa. Well you do not need to hire one from South Africa if you cannot afford to. The AREX department is always willing to help with advice, they do have some good apples left in their basket who can assist. Another avenue is to hire a local consultant for advice which is way cheaper or simply hire a qualified and highly skilled person to run your enterprise, remember to pay them well.  Farming is an art and a science at the same time requiring skill and expertise which is often acquired over a period of many years. Next time we will look at growing for export and the requirements for exporting agricultural produce from Zimbabwe.

• 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

A group of people link up and decide to set up a stokvel where they give each other money on a monthly basis. Everything goes on well with each member in the group receiving R5.000 per month from the 5 members in the group.

The last member in the group receives his share of R25.000 at the end of the stokvel cycle and at face value the coast is clear? Well not so clear as everyone in the group knows that he has received R25.000 cash! When more people know that you have cash, the amount, your location and more personal information then you open up yourself to robbery!

This fraud is affecting many members in South Africa and recently it was imported into Zimbabwe. In Marlborough, Harare a group of friends teamed up to contribute funds and share. The money was in hard currency and as soon as the last person in the group received his share of US$7.000, armed robbers pounced on him!

Joining a stokvel or mukando savings club? Make use of formal banking systems…include cash at your own peril. This scheme is bound to affect many unsuspecting members of the public as they use informal saving schemes.

Take measures to participate with people whose backgrounds you know plus reduce risks through formal banking systems use. Banks have the disadvantage of bank charges but protect you from possible losses from robbers from within the group.

Two weeks ago, I accompanied a friend to Mbudzi Roundabout in Harare in order to buy a goat. The place is named after goat sales but of late has more other commercial activities than goat sales. More than 20 buses leave the place headed for Beitbridge every evening. A lot of vendors are also found at the place which recently welcomed a new shopping mall.

We arrived at the centre and witnessed 3 sellers of goats and they had an average 20-50 goats roaming freely at the place. As soon as we indicated that we indicated that we were looking for goats, 2 guys came to assist and provided us with this informatio;

1. Demand for goats is very high with monthly average sales of 50.
2. Prices range from US$20-$40 per goat.
3. Supplies from rural areas low as farmers resist the local currency.
4. There is an unofficial abattoir where clients can buy goats with the goats slaughtered and prepared for transport. This activity costs RTGS$15-20.
5. During the 30 minutes we were there, we witnessed 5 goats being purchased.

We did not have a scale to weight the biggest goat that we purchased for US$35 but we estimated its weight to be between 15-20 kilograms…not bad in an economy where beef is costing around RTGS$15 per kg.

Opportunities

The way goats are marketed has room for improvement. The roadside method at Mbudzi or Tynwald could be improved by introducing proper selling facilities like the Koala Abattoirs along Seke Road. There is also room for ‘goat meat on wheels’ delivering goat meat to clients across the city.

The full demand for goat meat in the city is an unknown figure and so we urge our members to carry out own researches and plug in opportunities gaps.

Do search for one of our articles on hybrid goat farming on this site.

I find the National Geo channel very fascinating…i like the wild and most of the times been looking at big animals such as lions, elephants and buffaloes but rarely the leopard.

Of all the big cats, the leopard is the wisest…hunts alone, an introvert but has a great success rate on hunts. Once it kills prey it must quickly pull it up a tree for safety keeping.

How many of you shout on top of the mountain when you get a big deal? How many even start talking about big contracts before signing them?Once heard 2 guys talking about a half million Command Agriculture deal at OR Tambo Airport! A leopard knows there is stiff competition for resources, once you land a prey quietly pull it up a tree and start feeding lol

Delay and big guns such as lions and hyenas come for their own share.
I like how leopards attack prey whilst flying from trees…unbelievable stuff. Its like lightning….boom and in a split second an impala is gone. So impalas will be resting under a tree, looking for tree shade oblivious of the danger up tree. Impalas and most land animals are wired to look for trouble from the ground…most predators attack from the ground…but the impala uses the ground and from tree tops.

Risk Management Lessons:In your business, are you focusing on risks strictly from the ground or sometimes you are taking a look upwards? The greatest risks are often surprises! When attacking from above, the success rate for leopards is close 100%.

When the going gets tough sometimes the leopard goes for birds…yes birds in trees…unbelievable stuff.
Do you have an agile strategy that adapts to changing economic environment? Study leopards for inspiration. When you want to study about wisdom, forget the lions, forget the cheeter which only relies on one strength…speed….try the leopard.

When it comes to business models;

Lions for boldness,

Cheeter for speed,

The tortoise for slow but sure speed,

Buffaloes and elephants for team work,

The croc for stealth,

The leopard for wisdom,

Which animal or animals does your strategy follow?

I did not even bother to watch the Liverpool vs Barcelona match yesterday. I instead  followed the preparations of the elections in South Africa watching closely the debates and opinion polls. No need to watch a dead rubber-Liverpool was out! Of course I have watched remarkable come backs….plenty of them but there was no way Liverpool was going to overturn the defeat of 3-0! I don’t do soccer betting but surely if someone had said Liverpool was going to win, everyone was going to be against you. Common sense isn’t it? Barca beats you 3-0 and you expect Liverpool to win 4-0? You need your head to be examined!

But this is soccer…they call it the beautiful game and nothing is impossible! Liverpool romped to a 4-0 victory at Anfield in one of the best matches this year…unbelievable stuff.

Entrepreneurship lessons First Leg

You have the first leg as a startup, you have high hopes of profits, you have seen others making money…the field is profitable. You do your meticulous planning, good market research and an award winning business plan. You put your resources together and plunge into the business field. You have the support of family and friends and looking forward to a victory.

Within a few months your world is shattered by events on the ground, silly goals conceded as some employees vanish with inventory or cash. Big clients do not honour obligations, the foreign currency markets swing southwards, inflation throws spanners into your business. The wheels come off and you concede 3-0! But hold on, this is not what you had planned…where are the profits? Dejected, embarrassed, distraught, disappointed- you walk off the pitch with your tail between the legs and throw in the towel. Your nemesis celebrate your fall from grace…you set social media alight with memes of your loss.

Entrepreneurship Lessons Second Leg

You have a tsunami against you. A tsunami, a cyclone, a volcanic eruption plus an earthquake to deal with. You are in the red, no one has trust in you any more…after all you proved it in the first leg that you are a hopeless team-perhaps directionless and many start asking how on earth you even managed to get there in the first place. However you refuse to give up-you go back to the drawing board and restrategise, you analyse your mistakes in the first leg, you look yourself in the mirror and motivate your players. You ooze confidence and rally your supporters to come and support you. You already know the pain of defeat, the embarrassment and the jeers from opponents. Hold on…you have nothing to lose. With chest high, confidence boosted you step in onto the pitch with one objective…perform a Houdini act and ride the tsunami wave, escape the volcanic ash and overturn the first leg defeat.

Dear forumite, you too can perform a ‘Liverpool Miracle’ and yes its possible. Its not an everyday occurrence as more than 90%of entrepreneurs who start encounter losses in the first 6 months and give up. Some do not even analyse what went wrong in the first leg. The shame and pain from the first leg is too much to even try again.

At what stage are you in your business? First leg? Expect a thorough drubbing and its normal-you don’t have the skills and experience….after defeat review what went wrong, get a mentor for motivation, learn from others and confidently enter the pitch again.

Congrats in order to Liverpool fans and wishing you the best in the final.

The image of a Russian plane making an emergency landing and bursting into flames at Moscow’s Sheremetyevo airport was disturbing. The plane on fire returned to the airport and sought the help of fire fighters on the ground but this was not enough as they took time to douse the raging flames that had engulfed the plane. An AirZimbabwe plane from OR Tambo headed for the Robert Mugabe International Airport also experienced technical problems and was forced to return to the airport and witnesses reportedly saw small fire emerging from one of its engines.

What happens when a plane encounters problems especially fire?

The pilot will seek refuge on the ground and as witnessed in Russia, the help may not be enough.

Water runways solution

A passenger plane slid off a runway in the US state of Florida on the 3rd of May , ending up in a river after landing during a thunderstorm. Twenty-one people were taken to hospital with minor injuries.The chartered Boeing 737, operated by Miami Air International, had flown from Guantanamo Bay in Cuba to a military base in the city of Jacksonville.

In January 2019, a US Airways Flight 1549 was an Airbus A320 which, in the climbout after takeoff from New York City’s LaGuardia Airport struck a flock of Canada geese just northeast of the George Washington Bridge and consequently lost all engine power. Unable to reach any airport, pilots Chesley Sullenberger and Jeffrey Skiles glided the plane to a ditching in the Hudson River off Midtown Manhattan. All 155 people aboard were rescued by nearby boats and there were few serious injuries.

Wikipedia has a lot of case studies on water landing which helped reduce the toll of plane crash survivors.

Redesigning Airports?

Our airports can help reduce the number of fatalities of air crashes if they can also have sections of water run ways where planes can be directed to if they are on fire. Its much safer and effective rather than relying on fire fighters who can sometimes take their time to reach planes engulfed by raging fire. The planes in distress are literally fire bombs which can cause serious damage to other planes on the runway plus passengers on the ground.

Your thoughts on this Zimbos?