It is a matter of weeks before a newspaper headline comes with another story of a collapsed ponzi scheme! But the question would be where were Zimbabweans when other ponzi schemes using the similar methodologies came and collapsed? Interestingly some financial professionals are being caught in the ponzi schemes web. We have updated our Ponzi Schemes Awareness handbook with the hope that it will save a few souls.
We hope to compile a full book by end of year.
2023-Ponzi-Awareness 
The unwritten rule is if you start with a capital of $10,000 in January then by December your capital should have grown to $100,000! Disruption in motion-welcome to the world of down town tuckshops that have taken over the wholesaling of groceries in Harare. The groceries are imported from South Africa and find their way to the capital using ‘various means’. A fast money spinning enterprise but only for the experienced and connected.
Getting information about this underground economy is no stroll in the park but fortunately we managed to get inside information from one of our members called Tinashe who has been in the business for the past decade and runs several down town tuckshops in the capital and Chitungwiza.
In the past especially before the Covid-19 pandemic, the sector was dominated by Congolese nationals running tuckshops in down town but after lifting lockdown rules—more locals entered into the fray looking at fast money spinning ventures.
The current business model is the tuckshop owners first get orders of groceries from clients and then link up with buyers in South Africa with funds transferred using a Hawala System of peer money transfers which comes with cheaper charges than the conventional money transfer charges. The contact in South Africa buys groceries and then look for transportation. In the past buses were used but they proved to be expensive and a cheaper alternative was found—use of cross border trucks where drivers charge a small fee.
Goods transferred to Harare and collected before delivery to clients. The mark ups added normally 5% with volumes playing a crucial role in pushing profitability. The tuckshops have also become defacto whole salers for out of town shop owners. Of course this comes at the cost of local production but to those in the sector.
This could also help to explain the decimation of whole sale behemoths in the capital and some of them could possibly have joined the down town tuckshops bandwagon.
One of the biggest international news is the ongoing search for the missing submersible or submarine which went missing in the Atlantic Ocean near the Titanic accident scene. The submarine was on a tour of the Titanic wreckage and as of to date the submarine is left with 40 hours of oxygen supply.
A massive rescue operation is underway but had been delayed led by the US Coast Guard, Canada and France. We hope they will be able to rescue the submarine crew alive.
Rescue efforts hampered by foggy weather but fortunately the skies are clearing and the first task is to identify the location of the submarine. Other things being equal-this should be an easy process given the deployment of resources that include planes, ships, and drones. However given the expansive nature of the area of search-time could run out before the 40 hour oxygen supplies run out.
The main challenge becomes location of submarines in distress during bad weather conditions. Ideally signals from the submarines could help locate the submarine anchored 3 km below the sea level but it is not as easy hence the headline news coverage.
Proposed Solutions
In addition to existing tech advancement that helps in locating submarines in distress. An addition could be a floating chute or torpedo that shoots up to the surface in order to help rescue missions. A submarine in distress should shoot the chute up the sea water so that it can float on the ocean surface like a parachute. Additions such as fitting the chute with GPS module could help make search planes locate it faster and save lives! Take note that the chute is not for bringing cabin crew to the surface as that needs complicated operations. The chute more of a locator for search teams.
The chute tied to the submarine and is shot with torpedo power to the surface where it will become a floater which is easily viewed from the air with the GPS locator helping in speedy rescues.
Similarly the same innovation could be used on planes so that we will not a repeat of the Malaysian Plane Flight MH 370. The plane which mysteriously disappeared on March 8, 2014 has not been found to date.
Of course the author is from the accountancy profession and therefore no engineering background. Therefore basically an accountant delving into uncharted waters territory of submarines. But who knows–perhaps this could be a great contribution to the safety of cabin crew on submarines as well as curbing the repeat of Flight MH 370
We encourage Zimbabweans to follow the forum for business ideas and the good news is that our members are always willing to share information on opportunities. In this post we cover buying shoes from Mozambique for resale in Zimbabwe, and we cover below experiences from Zbinites.
By Tindo: The business is or used to be profitable but due to many people (very high competition)now doing clothes and shoe business here in Harare or rather Zim and also the high rentals of spaces to sell its no longer that attractive. The business nowadays depends on the street you are and position in the shop your table is and also those who buy in bulk from Maputo suppliers enjoy economies of scale as compared to those with little capital and hence they sell their shoes at very lower prices thereby attracting more or almost every customer there is. You also need to be continuously getting the latest stuff on the market and with little capital hence less sales u won’t really cope. The goods are usually smuggled into the country and there is always this risky of losing your capital if the goods are intercepted.
In short it used to be a very good business or still can be if you have enough cash yekutenderedza and also your marketing skills.
By Tinashe: Did that business for two years between 2011-2013. Then taiva vashoma we would take shoes from Beira and Maputo,maputo yairwadza distance.It was wiser kuvhura bhero ikoko wosarudza than kutenga bhero racho rakadaro. We would charge average of 100-200% mark up. Ndakazozvisiya after prices started to fall takuisa ma50-100% mark up. Major challenge was maforeigners todhurisirwa kudarika veko vana amigo,muroad ukaita munyama unogona kunyura or dzikatevera dzaisvika dzimwe dzashota. Major benefit was waisada capital yakawanda coz we would get some new as low as $5 usd apa dzakanaka. Of late I have realized kuti maMozambicans vacho vakuuya nadzo vega.
By Vale: Its a good business its only need links with people in Mozambique because the shoes comes from Vietnam 
by Chinese you you will need someone on ground in Mozambique.
The shoes are very cheap when you buy them in bulk for example a box of high quality airforces its costs $370 with 30 pairs and if you sell them with $20 you get $230 profit per box.The advantage or new shoes from Mozambique is that you are not restricted to import them from Mozambique to Zim they are different from bales which are not allowed 
Transport cost to and from Mozambique is approximately $50. But to start that business it needs about $600 and above so that you will have a variety of shoes.
By Tindo: Price depends on the quality of the material used to make the shoe and the low quality (cheapest ie ma airforce ema $10,$15 mutown), medium, high end which is next to or almost as good as original(has bar codes which can be traced back to the likes of Nike dot com because the manufacturers are given rights by these companies), these ones you find them being sold from around $50 going up muharare. So the bottom line is u need to identify your market muno muZim and that determines the quality of shoes you will be selling. MumaGhetto medu umu vazhinji havana pressure nequality but as long akapfeka airforce boe(result asina irombe coz everyone can afford kumarunner) then kwoitawo those vasingade zvese zvese.
There has not been much attention given to the role of free funds in the Zimbabwean Economy. Economists have not paid attention to this critical area perhaps for good reason as there is little public information available and also the fact that they appear as an Index to the National Budgets.
Free funds can be defined as funds parked in the economy for various purposes with no immediate need to liquidate them. Their availability during their tenure helps stimulate economic growth through the multiplier effect. They also boost business and market confidence.
The significant inflow of free funds has a positive influence and if often followed by the inflow into the formal banking systems and we need no other case study than the Government of National Unity period which began in 2009 and ending in 2013.
The million dollar question is where did funds to kick start the economy come from in 2009? Did the economy receive significant bail outs from leading lenders such as IMF and World Bank? Not much came from these leading international lenders.
So who opened the funding valves? The answer lies squarely in the 2009 Budget under the Annex Table (Consolidated Donor Support). The period witnessed a ramp up in Donor Aid funding to Zimbabwe compared to previous years and this persisted throughout the GNU period.
To make it easier for readers, take for instance a leading Donor Agency that approves aid worth $800m to Zimbabwe and if all the funds are transferred to local banks in the first quarter of the year but being used for the next 8 months. The funds automatically become free funds and banks can lend to borrowers for productive use in the economy.
This helps boost business confidence which explains why in 2009 even cash kept at home ended up being channeled into the formal banking system.
Averaging a USD 1 Billion per annum from 2009 to 2022, the roleplayed by free funds cannot be underestimated especially in an economy where lenders have not provided significant loans and bail outs. Apart from Afrexim Bank and more recently, The IMF US$900m SDR Facility-there hasn’t been a significant inflow of funds by external lenders.
Researches and student of Economics therefore need to study the National Budget Annexes from 2009 to date and also review external loans extended to the nation during the same period.
The 2022 National Budget showed a massive slump in the Free Funds and we raised concern on the implications of half the budget or possibly lower than half coming into Zimbabwe’s coffers.
The budget clearly showed Free Funds flight and add other complex matters arising, the nation in a foreign currency squeeze characterised by steep currency rates hikes. To solely point towards Free Funds flight would be incorrect as in 2022 Zimbabwe received a record US$12 Billion in export receipts leaving a positive trade balance of US$300 million according to Take-Profit Organisation.
Although the trade balance has been sliding into negative territory, however the fast depreciation of the local currency in May 2023 is unprecedented. And the slide continues well into June 2023 and showing no signs of stopping. This is what prompted this write up-did the gap of free funds in 2023 precipitate the current volatility?
What is the sensitivity of free funds to the economy?
Should the situation return to normalcy, will free funds have played a critical role?
Engaging with your audience on social media can be challenging, and there are several common mistakes that businesses make when trying to connect with their audience. Here are some of the most common mistakes to avoid:
Too much self-promotion:
One of the biggest mistakes businesses make on social media is focusing too much on self-promotion. While it’s important to promote your products or services, your social media presence should also provide value to your audience through informative and engaging content.
Ignoring negative feedback:
Ignoring negative feedback or criticism from your audience can be a big mistake. Addressing negative feedback in a respectful and thoughtful manner can help turn a negative situation into a positive one and show that your business values customer feedback.
Posting sporadically:
Inconsistent posting can make it difficult to build a strong following on social media. It’s important to post consistently and at optimal times to ensure that your content reaches your audience.
Failing to respond to comments or messages:
Failing to respond to comments or messages from your audience can make it appear that you don’t value their input or are not interested in engaging with them.
Using too much jargon:
Using too much jargon or industry-specific language can make it difficult for your audience to understand your content. It’s important to use clear and concise language that is accessible to your audience.
By avoiding these common mistakes and focusing on creating valuable, engaging, and consistent content, you can build a strong social media presence and connect with your audience effectively.
Guerilla marketing is a marketing strategy that involves using unconventional, unexpected, and often low-cost methods to promote a product, service, or brand. The goal of guerilla marketing is to create a buzz, generate interest, and capture the audience’s attention in a creative and unexpected way.
ABC Auctions is a prime example of a local company that has achieved mastery in the art of guerilla marketing. Their marketing campaigns are consistently designed to generate buzz on social media, resulting in high impressions and engagement rates on their Facebook page.
The comments section on their posts never disappoint. It seems like some people earn a living from commenting on social media. 🤓
So, if you’re looking to create a similar buzz around your own social media ads here are some strategies you can employ in your marketing campaigns:
Know your audience:
Guerilla marketing campaigns are most effective when they are targeted to a specific audience. Understand your target audience’s interests, behaviors, and preferences so that you can create a campaign that resonates with them.
Be creative:
The most successful campaigns are those that are unexpected, innovative, and memorable. Come up with unique and creative ideas that will grab people’s attention.
Keep it simple:
A clear and concise message is more likely to be remembered than a complicated one.
Be authentic:
Guerilla marketing campaigns should be authentic, don’t try to be something you’re not.
Remember, a successful guerilla marketing campaign requires creativity, authenticity, and a deep understanding of your target audience.
In 2021 we have compiled a short book on the history of Ponzi schemes in Zimbabwe and the book is accessible through our Forum Resources. The short book covered the first Ponzi Scheme which came in the 1990s and given names such as Money Clubs. The money clubs mushroomed especially in Harare and Bulawayo with many thronging down town offices before their collapse with substantial funds lost.
The second biggest Ponzi Scheme came around 2014/5 and crossed the borders from South Africa to Zimbabwe showing the vulnerability of the country to International Ponzi Schemes. It was called MMM and was orchestrated through local payment systems. Typical of all Ponzi Schemes which have short legs and short life spans, it crashed with an estimated US$30 million of investor funds lost.
One would think the string of Ponzi Schemes coming and burning many fingures, Zimbabweans would learn from the adage ‘Once bitten twice shy?’ Well, not in Zimbabwe where Beven Capital was to emerge 2/3 years later and running for a record 3 years before collapsing with amounts similar to MMM being lost.
Did we see the end of Ponzi Schemes with Beven Capital? Not really as 3 years after the demise of Beven, a scheme similar to MMM is in town and trending. All voices of reason being muted as Zimbos scramble to invest in the Ponzi Scheme covered by TechZim. Millions being invested by Ponzi Hunters quenching their appetite for risky investments whose end most know of. The Ponzi Scheme owners are even daring by appearing on local television and newspapers. They are also going around the country and opening offices in broad daylight.
When is the latest Ponzi Scheme going to collapse? Our estimated date is before the 2023 elections. The Ponzi Scheme likely to peak around July before collapsing around early to mid August. It cannot straddle the elections. The vexing question is why are Ponzi Schemes allowed free-play in the economy? Perhaps there is an unwritten positive impact? Or part of financial literacy practical education?
Whatever the positive spin to Ponzi Scheme could be, our advice is work hard and create real sustainable wealth. The e-creation of wealth through Ponzi Schemes is not only risky for direct investors but also to innocent investors oblivious of the chicanery behind the scheme.
We have covered opportunities in Angola before and hope you managed to read the posts. This time around we have specific opportunities identified by the Zimbabwe’s Embassy in Angola and we hope some of you will be able to benefit. The good news is officials from the embassy managed to conduct an online presentation for the forum and we captured below the proceedings;
Boa tarde, Good afternoon All
My name is Olivia, I am Zimbabwean and have been living in Angola for the past 15 years.
I liaise with the Zimbabwean Embassy to open opportunities for Zimbabwean businesses in Angola.
Allow me to introduce you to Mr Manhombori from the Zimbabwean Embassy.
He will share with you more details on the business opportunities that the Embassy has been working on unlocking for Zimbabwean businesses – mainly in the Agriculture, Health and Education sectors.
Thank you, obrigada!
Olivia
******
*Disclaimer:* The information provided in this chat does not, and is not intended to, constitute legal advice; instead, all information is for general informational purposes only.
******
Good evening colleagues, and thank you for showing great interest in wanting to know business opportunities that are available in Angola.
As you know, much of business embassy is to facilitate exchange or information and interaction between stakeholders from the two countries. In that respect, the Zim Embassy in Luanda identified 3 business sectors that Angolans have interest in working with Zimbabweans. These are Agriculture, education and Health.
At the moment it is the *agriculture sector* that seems to be giving indications of Angolans’ great interest to involve Zimbabweans in the country’s agricultural transformation. May I underline that Angola has put clear their good intention to diversify their economy, from relying on petroleum into agriculture.
In respect of agriculture, the government of Malanje Province (one of the most suitable for agriculture) promised to offer up to a 1000ha of land to each Zimbabwean firm interested in farming.
NB:
✓In my enquiries on availability of finance, I found out that Angolan banks are only providing working capital to already running businesses.
✓Let us scrutinize the information and share ideas as much as is possible.
✓ Information on education and health sectors to be shared as it becomes available.
*****
Meanwhile, the embassy is receiving (bankable) project proposals for submission to Malanje Province. Those interested can send their proposals at,
zimluanda2020@gmail.com
Mumpreneurs made history on the 22nd of April 2023 with a record 130 members attending the launch of the Mumpreneurs Forum initiative at Queen Elizabeth School.
Launching initiatives in Zimbabwe no easy stroll in the park and getting above 50 attending a record achievement. Who are Mumpreneurs? Ladies running businesses and those interested in running businesses. And they fall under the Zim Business Ideas and Network forum.
We had superb presentations from Mumpreneurs and a representative of ZB Bank—Lorraine, Mumpreneurs brought various goods for sale and also enjoyed networking.
Presentations
Lorraine from ZB Bank: Awesome presentation and the good news is ZB Bank would like to partner with ZBIN inorder to facilitate smooth opening of banks. They will consider waivers on proof of residence for some—and possibly collateral in consultations with the forum. Great opportunity for members in pursuit of financial inclusion. Thank You ZBIN and we hope thousands of Zbinites will consider ZB as a bank of choice!
MCs Dr Musariri and Gwen Chikofi: Chitungwiza has exceptional talent and the 2 Mumpreneurs delivered top notch experiences.
Other Presenters: The forum enjoys giving our members opportunities to showcase their talents. Brilliant presentations from Gwenn Chimuti, Luwy Kay Kusemwa, Auntie Thandie, Lilian Paraffin, Vongai Modester Mupfiga, Coach Mazvita, Chrystal Mushonga, Monica Zodwa Cheru(Zim Now), Freda Chingwe (Mom of Nations) and Sherz Zhonge. Unfortunately not enough time for the presenters but they delivered memorable powerful presentations.
Credit goes to everyone who sacrificed to attend and support the event. You made history and like the motto—Lets fly together, the Mumpreneur Plane took off from the runway today. What is left is the review of today’s event—plugging areas that need improvement and getting ready for the next event.
· Access to markets looks promising as the market fairs are set to attract more people.
· Access to capital could be made easier through collaborations with leading financial institutions such as ZB Bank.
· Access to the government and the corporate sector seem enhanced through well organised and attended events like what you did today.
The next steps—capturing of today’s event proceedings and photos into the Mumpreneur Magazine which we hope will make a huge impact in the business sector. Review of today’s event and planning for the next event and follow ups with ZB Bank.
Credit goes to the sponsors and we are forever indebted for the support. The guests who attended and actively participated, the organising team and of course the lady who failed to eat yesterday as she ran around trying to make the event work—Leah Makamanzi Mugari.
You may have missed The Mumpreneur Launch—not bad but we hope you do not miss the next one.