Diaspora Matters

We have a small prize for the first person to get the answer correct.

Happy Valentine

During our last preparatory meeting for the business tour to Mozambique, I suggested the need to link up with Human Resources Consultancy in Mozambique. What was the response from ZBIN members? ‘Munemo haurevesi, toshanda muZimbabwe, woda kuti tinoshanda futi ku Mozambique?’That was an interesting response from the community-in short most people now want to be entrepreneurs and are no longer content with being employed. We have a lot of people who want to be their own bosses, excellent attitude from our members!

ZBIN has been posting a number of articles per week to help members with free information. Expect more information in the coming months, we hope to improve the quality of information shared because we have been sharing basic information which may not be useful in investment decision making. In future we hope to recruit talented interns from the fields of Accounting, Statistics, Finance and Economics. They will be able to provide quality data on investment needs and developments in the country.

Top Needs of the Small to Medium Scale Enterprises

Before we give you information on top needs of the SMEs sector its important to establish or define who exactly is involved in this sector. The first group is made up of folks who are employed 100% in the sector, those who are on the ground running own business enterprises. The second group is made up of part-timers, those in formal employment but with side businesses that they operate to supplement their incomes. The third group is made up of Diasporans who partner with relatives and friends back home in running business ventures.

So what are the current top needs of this sector? Information: We can lump all the needs of the sector into information-lack of information in terms of all the factors listed below. If one has information then they are empowered to make the correct decisions, guess work is often costly as you can invest in a field in decline or a field facing a possible ban. A recent case in mind is that of Zvihuta, some took loans to invest in the project which was banned a few weeks later. Allow me to break down the information needs below.

1.Capital Needs: This is the major stumbling block in the sector. Access to capital such as bank loans. Not enough information is available to existing and new entrants

2.Marketing: Access to markets is also a big issue in the sector, most people can produce high quality products but the biggest challenge is how to access markets. Information on markets availability is a big challenge.

3.Registration: Few SMES are registered formally with the biggest challenge being the cost of registration. One can also add lack of knowledge of the benefits of registration

4.Access to Exports: Few SMEs are active in the exports market with most of them concentrating on the local market. There is lack of information on the benefits of exporting goods.

5.Foreign Currency: Foreign currency availability is proving to be a challenge in 2017 for most companies, the SMEs is not spared

These are our top 5 challenges in 2017 so what opportunities are presented by these challenges? The challenge on Access to Capital creates opportunities for the Diaspora to partner with locals in business ventures. We have previously written about Diaspora Bonds and provided a couple of case studies from Israel, Jamaica and India on how to raise funds from the Diaspora for effective partnerships.

The Access to Markets Challenge can be solved by SMEs pooling resources together and forming big associations or companies like what ZBIN Poultry is doing. Please read our latest article on Poultry. We also have room for Marketing Consultants to enter this field because we seem not to have certified SME Marketing Consultants, we have no brand names in this field targeting the SMEs.

Registration: A few weeks ago I wrote about the benefits of registering companies. This is the message that has been missing as all consultants helping in the registration of companies have been missing the key information-What companies stand to benefit by registering formally. The other issue is other issue is the cost of registering companies which are prohibitive. So opportunities exist for new entrants who register companies at competitive rates, new entrants who can market the benefits of registration effectively so as to attract clients. The Government also has a hand to play in encouraging the SME sector to register, the Government will benefit from improved revenue as the registered companies will be required to pay tax. Before encouraging the SMEs to pay taxes, engage them and reduce the cost of company registration.

Access to Exports: The Reserve Bank should be applauded for introducing an Export Incentive. More should be done though to encourage the SME to export goods and services. ZIMTRADE will be presenting a market survey report conducted in the Democratic Republic of Congo, good move but more should be done to make these market survey reports available, free of charge to all SMEs. We recommend the establishment of an SME department within ZIMTRADE to spearhead export drive by this sector.

Foreign Currency Availability: This is likely to remain a challenge in the short to medium scale. Opportunities that exist include those already mentioned such as exports drive and diaspora engagement. There is also room for use of innovative platforms such as crowdfunding and peer to peer money transfers.

So there you are good folks, opportunities abound in this sector for you as a Consultant to help this important sector that anchors the economy. There is room for entry for a lot of innovative professionals who can tackle capacity building,market researches and company registrations . The Zimbabwe Business Ideas and Network  through this site would like to promote consultants who are willing to write articles that help this important sector.

The last time we talked about Chicken Farming we were tackling the issue of markets. The challenges that our members face when it comes to access to markets. Most members now have knowledge of raising chickens-the costs of raising chickens, the various diseases that affects chickens and how to prevent or manage them. A lot of companies in the industry have done well to train new and existing farmers on how to successfully raise chickens.

So knowledge of raising chickens is not an issue, the issue here dear forumite is that of the Markets! How to sell chickens, where, how much and ability to get your monies regularly without having to chase customers who would have defaulted.

Marketing is our number one problem and we have been cracking our heads trying to break the marketing puzzle. The good news is that we have come up with a potential solution to the problem.

Company Formation

We also know that there are several companies, supermarkets, hotels and restaurants that buy chickens. They however only buy from large scale poultry producers. You cannot approach OK Supermarkets and tell them that you would like sell to them 100 chickens, they will simply turn you away because they have no time for farmers with low volumes.

So on our forum we have various farmers who are raising chickens on an individual basis. ZBIN is therefore asking members to come together and form a company. They will supply chickens on credit to this company and the company will in turn sell chickens in bulk to large supermarkets. The company will be responsible for negotiating contracts with supermarkets, restaurants and other large scale buyers.

Farmers benefit by knowing that they have a ready market for their chickens and know that they can receive their money in bulk thus enabling them to plan and concentrate on raising chickens.

Phone Call from South Africa

A few minutes ago I was on the phone talking to a ZBIN member who is based in South Africa. He is an ex buyer who worked for one of the leading supermarkets. He is willing to offer assistance to farmers on branding and setting up of the company, the key contacts and discuss about opportunities and risks in the sector. So we are glad to have expertise on the forum and hope to take advantage of it.

What Next

We will start slowly with just a few serious farmers We are looking at possibly 20-30 farmers on the forum who can provide 1000 to 2000 chickens on a regular basis. With time these farmers can expand their operations or they recruit more members. This initiative is strictly for members who are already doing farming.

To discuss on modalities of doing this, we are inviting chicken farmers based in Harare to get in touch with me on +263 774081808 (strictly no phone calls), Catherine Shava on +263776196313 or Theresa Sithole on +263 772 215 695. We are planning to hold a meeting on the 25th of February in Harare. This will be an opportunity for  members to provide input on this initiative. There is no registration fee but you have to be Poultry Farmer.

Muito Obrigado

ZBIN is the leading forum that champions the engagement of Diaspora in Zimbabwe. We have more than 20 articles on Diaspora engagement. We have Diaspora representation on our board, we have Diaspora members on the group. Eighty Percentage of readers of our posts are Diasporans.

One of the reasons why we formed this site was in trying to answer this question. Lets say you are in Canada and would like to invest in Zimbabwe, where will you get relevant information?If you are in Menlon Park and would like to invest back in Zimbabwe,which site will give you with relevant information?

So we tried to answer the question of information availability and realised that no one provided information on investment for Diasporans. We have the Zimbabwe Investment Authority but they seem to cater for foreigners interested in large scale investment. So this is how the Zimbabwe Business Ideas and Network concept came about. We also realised that even for locals they could not easily obtain investment information. In most cases you will have to pay someone for information or have to physically visit the country inorder to access information.

So in comes ZBIN and we just love to connect with the Diaspora! We will try our level best to provide you with key investment information for free. Our hope being that the information will assist in you in terms of investment decision making! We hope to see the Diaspora investing in Zimbabwe and help create employment and the overall development of our wonderful country. We hope to help in the development of the National Diaspora Strategy by the Government which should help in  Diaspora Engagement and Investment.

So what is the best area to invest in at the moment? It is a tricky one because we have the Mining Sector which is growing at a fast pace, gold output is at an all-time high, mineral prices are slowly picking up. So is mining the best sector that we are recommending to our wonderful Diaspora Community?

Dear reader the answer is Dairy Farming! We have left Mining because it’s a bit risky for new comers, its worse when you are far away from home. We highly recommend the Dairy Sector….this is where the money is! Just look at the figures-for every $1 invested, the return is $12…Aaah chinenge chikwambo kai chi lol We recommend this sector to someone from the Diaspora who is thinking of coming back home and you have some money to invest but not sure where to invest in. One catch though-you have to be on the ground, you have to put your money where your mouth is.

You cannot trust anyone to run your venture because you will be conned. Zimbabwe is currently importing milk because we cannot meet local demand, a few NGOs have been assisting in the resuscitation of the sector which had gone down in the last few years. So the sector is being revived with a number of small scale and large scale farmers entering the field. Now here is more good news-some of the farmers have been able to get loan guarantees from donors who are funding this sector. So you may not need to invest a lot of money as your greatest asset is going to be INFORMATION.

For more resources on Dairy Farming do check out www.zadf.co.zw. ZBIN will be carrying out a detailed analysis of this sector for the benefit of our members. Do expect the report at the end of March 2017.

So I have this good friend of mine who is based in Durban who runs a Beauty Spa . She contacted me yesterday  telling me that she was over the moon because she had secured funding for her business. A business partner had injected a substantial amount of money(capital) in her business! As a result of the new capital injection, she had secured a bigger space compared to her old operating space. She was also busy carrying out interviews for  3 additional employees who will be starting work next week. So everything is moving at a fast pace and she needed quick business advice from a trusted friend.

Now here is a catch- this friend of mine does not have managerial skills, she had been operating her beauty spa alone and all of a sudden there is a big unexpected expansion  in her business! When I talked to her I could sense that she is happy to realise her dream of expanding however she was afraid of the responsibilities that comes with leading a team of 3 employees. ‘Hanzi handizodeerwe here? Ko vakazviziva kuti its my first time to lead this team? She has confidence issues and its understandable, many entrepreneurs go through this phase.

So with no business management experience what is a quick solution that we are offering to her? I deally i would have liked to take a lot of time in analysing the Beauty Industry in South Africa, Durban competition, trends in the industry, opportunities and risks. I would have lved to analyse her business plan but dear reader, none of this information is available. I have to come up with a quick solution because new employees will be at her premises next week ready to start work. So lets look at some of the quick solutions that we have quickly drafted for her.

1. Have fun, make the work environment an enjoyable one. Clients need to be happy and for this to happen your employees should enjoy their job.
2. Nothing much has changed, she is still the same person, doing what she knows best. She must not panic or put herself under undue pressure. Everything will be fine-she just need a positive mindset and enjoy working with additional staff members.
3. Make sure you have well developed job descriptions for the four of you. Employees should know the organogram, who reports to who. In her case I believe all the new employees will report to her
4. Employees should know their terms of engagement, how much salary each person is expected to get, operating hours, leave conditions etc
5. The vision of the company-what do you stand for? What is your long term vision? New employees should be aware of the history of the company and where you intend to be in the long run.
6. Proper Induction-The new employees will be coming next week so its important that there is a proper induction in place
7. Monthly targets- her fears of managing a new team for the first time are understandable, to help manage this she needs to set monthly targets of performance for the company and each employee. Ideally this should be coming from her business plan. Monthly targets which sets out the number of clients to be attended to, the monthly target of sales
8. Conducting weekly meetings- meetings play an important role in keeping everyone focused and knowing the big picture. They are important for information sharing, target setting and solving operational challenges. The meetings can be held on a weekly basis especially every Monday Morning, you develop a small agenda of targets to be achieved, review progress and discuss any other business.

So in the absence of a business plan, in the absence of a marketing plan-this is our crash business programme to get her going because she is an experienced beautician with a lot of clients, the only area lacking from her side are business leadership skills. We will come up with a detailed business plan for her business which will cover Finance, Human Resources, Marketing, Administration and Business Development.

So forex availability continues to be a challenge in the economy with Stanchart issuing a stament advising their clients about controls on the use of visa cards. One now need advance application and approvals prior to travel abroad. We expect this to continue with all banks following suit. The bottom line is there is simply not enough USD in circulation and there are too many reasons for this. We will not dwell much on the reasons as most of them are beyond our control.

What is within our control is to stay positive, we need a positive mind set to navigate the year 2017 which promises to be a challenging one. Lets start at looking at the positives first.

1.    Excellent Human Capital-we are not short on key skills

2.    Technology availability- the availability of internet presents many opportunities that enables us to effectively use technology for our benefit

3.    Vibrant Diaspora-we have a vibrant diaspora community that has an interest in their homeland. Every year they remit close to a Billion USD Dollars to Zimbabwe.

4.    Good Rains this year- opportunities abound in the agricultural sector this year due to the favourable weather conditions. This means less money spend on imports by individuals and the nation at large.

5.    Profitable Mining Sector-this is where the money is, this sector is doing well with increased output especially in the gold mining sector.

Its going to be a bumpy ride in 2017 for most Southern African countries, Zimbabwe is not alone so this information maybe relevant to followers in Malawi,Zambia and Namibia.

So what to do given the challenges we will be facing in 2017? Our answer lies in you having a positive mindset. It all starts in the brain, give up in the brain and it will become doom for you,your family and everyone else.

ZBIN is encouraging our members to be positive minded and identify opportunities. I can refer to my first trip to Tete in Mozambique. Everyone was discouraging me,few supported my trip to Mozambique. My doctor told me bluntly that the country is an outpost of poverty. The country had no industry, it was afflicted by a lot of ills-he wondered why I wanted to waste fuel and money travelling to a country with no hope. I however insisted on going and guess what? I witnessed a number of good opportunities that exist in the beautiful country of Mozambique. I saw plenty of opportunities and this is due to the positive mindset I had from the start of my journey.

The purpose of the trip…to identify business opportunities full stop. My trip was not to see the negative side of Mozambique but I was focused on the positives only. I witnessed opportunities which residents in the city may not be aware of. So the same applies to us in 2017, drive through it seeing opportunities where others do not.

In summary we are encouraging our members to do the following

1.    Netowork,network and more networking: you need to create strong networks that helps you in terms of information and opportunity availability

2.    Emerging trends, follow trends of opportunities that will be emerging in the region. Some may take time to reach our shores but just be on the look out

3.    Diaspora community relations-solidify networks with the Diaspora community, you do this not only for access to funds but information exchange. These relations should not be tilted in one direction. It should be a win- win situation.

4.    Find out businesses which thrive during challenging economic times and explore them. Your case studies may include businesses that remained open during the 2007-2008 era.

So all the best ZBINites, lets discuss more about this area during our meeting in 2 weeks time. This will be part of the Agenda of our meeting on the 18^th of February in Prospect, Harare.

Remember the formula [ Positive Mindset = Opportunity Identification]

Wishing you a blessed day

Every week ZBIN covers investment inquiries from our members. One common trend is that of members with capital but clueless of what to invest in. A lot of people with capital but not sure of sectors to invest in. This has resulted in many people flooding a few investment sectors. ‘Munhu wese arikubva ati ndezvipi zvirikuita mari obva amhanyira ikoko, kunzwa kuti zvihuta zvaita mari nyika yese yomhanya kuzvihuta’ So ZBIN likes to expand the investment options for our members and followers and today we take a look at the Agro Processing Industry, a very relevant industry because the year 2017 promises to be a very good agricultural season. Why not a good rain season given the above normal  high rains that we have been receiving for the past one and a half months?

So the rains should guide some in terms of investment. The hope being that the trend of good rains will continue for the coming years. Let us start by defining Agro Processing:

It involves the transformation of agricultural produce into a different physical or chemical state. It encompasses technical and mechanical processes that range from packaging to the transformation of raw material into final products.

So some will concentrate on farming and others will concentrate on adding value to agricultural produce. Some will invest in producing maputi, snacks, biscuits etc.

Easy to set up Agro-Processing industries

Simple Packaging

Have you ever been in a local supermarket and observed packaged sugar beans, butternut,matemba,mufushwa,honey and amacimbi. Do you think the companies who packaged these products used sophisticated expertise or machinery? We do not think so-all they would have done is to get a reliable source of supplies from farmers and then make good connections with retailers.

Simple Manufacturing

There is an abundance of simple manufacturing machinery available that produces products such as Maputi, Butternut,’Freezits, Cooking Oil and Soap. This machinery can be sourced from $500 and above.

So there you are good folks, we have just given you introductory stuff we hope to bring you detailed information about Agro-processing. There are a lot of opportunities in this sector that need investors some with little capital like production of Maputi, some may require high vaue capital like the production of ciggarretes from tobbacco.

Our next report will give you detailed information on the current status of the sector, level of competition,opportunities and risks and guidance on how to enter the sector.

Wishing you a Blessed Sunday

So as an Entrepreneur you have many stakeholders that are affected by your business. From customers, Tax Authorities, Suppliers, Business Associations and Banks. For your business to be successful, you will have to learn to manage all of these stakeholders because they can either make or break your business. If you treat your customers badly then they will move on to the next competitor-the result is an obvious drop in profits. If you fail to manage relations with suppliers-when you develop the habit of paying late, then you are likely to be asked to pay cash up front and this can be costly especially in the current environment where hard cash is not easy to obtain. If you fail to settle your tax bills then you run the risk of paying penalties.

So the bottom line is that you have to manage relations with your stakeholders. So who is a stakeholder? My loose definition is that of anyone affected or interested in your business. Someone who can either make or break it. Someone may not even be your customer or buy your goods but can easily send malicious information about your business that can destroy it . Take for example the story of Andy Muridzo-most of the people talking about his recent affair with Bev are not his fans, some have never heard about his music, few have ever attended his shows but are interested parties in blasting him for his affair with sister Bev. This is the power of stakeholders-even those not remotely linked with your business can easily take an interest should something of interest related to your business come up. You may be forced to respond to a malicious Facebook post about your business because it can destroy your business.

Example of Stakeholders for Butchery

Lets assume you operate a butchery in the city centre, the city can be Lusaka, Lilongwe or Harare. So for this butchery lets find who can be a stakeholder.

1. Employees
2. Customers
3. Suppliers
4. City Health Department
5. Workers Union
6. The lessor who owns the property
7. Neighbouring business owners
8. Tax Authorities
9. SME Associations
10. Banks
11. Shareholders
12. Members of the Public
13. The Government

So as you can see there are plenty of them and each party has a different interest in your business. Banks would be primarily interested in how well you are doing so that you can pay back their loans, Tax Authorities would be interested in whether you are paying taxes timeously. Customers will obviously be interested in the price and quality of meat.

Now in practice its very easy to concentrate on one stakeholder or a few and forget other critical stakeholders. You can concentrate on customers at the expense of the Health Department requirements or concentrate on shareholders at the expense of employees. This is usually the case during emergencies or periods of crisis which often lead to more crisis.

In next article, we will look closely at how to manage stakeholders and we are going to use a tool called The Mendelow Matrix, you can google search it for reference. We are going to look at the practical side of managing stakeholders. In the meantime you can draft your own list of stakeholders that affect your business. You can even draft a list of stakeholders that affect you as an individual-your employers,inlaws,relatives,neighbours,church,friends etc. Find out how well you are doing in terms of managing your personal relations and make a plan to improve.

ZBIN Wishes You a Fabulous Weekend

We share with you some top business quotes from the continent of Africa. The quotes were originally posted by one of our favourite business websites, ‘How we made it in Africa’. The site is arguably Africa’s best website for Entrepreneurs. We have added Mutumwa Mawere and Strive Masiyiwa to the list of quotes at number 22 and 23.

 1. “Discipline yourself, pay yourself a salary, and whatever other revenue you generate, put it back into the company. Do this for at least the first five to eight years before you start looking to buy a Lamborghini.” – Basilio Makendengue, co-founder of NomeX in Equatorial Guinea

2. “It is all about creating value for customers. And if you can’t do that, then you shouldn’t be in business.” – Nadir Khamissa, South African entrepreneur and co-founder of Hello Group

3. “Entrepreneurship does take a toll on your social life. You are always focused on the business, thinking about work, even when you’ve taken time off to unwind… You need to be passionate about what you are doing. Then you need to have a purpose – for me it’s building a legacy and having a positive influence in society. Then you need perseverance to stick through the tough times; a plan to get you where you want to go; and good people to walk with you.” – Trushar Khetia, CEO of Society Stores in Kenya.

4. “I don’t think there is ever a right time. A lot of times an entrepreneur has to make a decision and make a move. If you keep waiting for the right time, which means the safest time, you might wait forever.” – Carole Mandi, founder of Carole Mandi Media Limited in Kenya

5. “As an entrepreneur I believe that no one can do it all. Never try to be a jack of all trades. But the lesson I’ve learned the hard way was never count on someone else to make your business a success. It’s your dream, your passion. If you want to succeed you have to make it happen. Don’t try and do it all yourself but be involved.” – Johan Meyer, Nambian entrepreneur and founder of Wallettec

6. “There is always an alternative way to doing things and it might end up being simpler, easier and cheaper than conventional ways. So as long as you have that mindset you will be able to innovate. And if you have passion, it will drive you through the whole difficult process of bringing it to success.” – Olufemi Odeleye, founder of Tryctor in Nigeria

7. “We have had a lot of issues in the past with people we have worked with because people over-promise and under-deliver. So the biggest lesson has been to always do a trial run before entering into a formal relationship.” – Moira Johnston, co-founder of EventRoom in South Africa

8. “The first lesson I learned was that patience and perseverance overcome mountains. Niger, like some other markets, is nascent and complex. The lack of frameworks, infrastructure and information demands a lot of patience in dealing with setbacks and delays. What truly defines success in such challenging markets is the ability to recreate oneself from one failure to another.” – Rohan Garg, co-founder of Belvie in Niger

9. “Entrepreneurs have to learn the power of networking and the value of mentorship, as these are the things that most entrepreneurs take for granted. And also they must know that opportunities will not come to them; they have to go out there and create them by knocking on corporate doors with proposals. Personally, I am where I am because of a business mentor who changed the way I see things.” – Anda Maqanda, founder of AM Group in South Africa

10. “Surround yourself with people that really believe in you… I found, especially when I was working while starting this business, that there will be moments when you are really down, scared or worried, and just aren’t ready for some of the challenges and the setbacks. It demands a lot of patience and courage, but that courage comes from the people around you.” – Saheel Shah, co-founder of Adpack in Kenya

11. “I think the first mistake we made was thinking we could be our own accountants. We did not hire an accountant right away and that led to some mistakes in our financial system as we mixed up personal and company resources.” – Pascal Murasira, co-founder of snack label Winnaz in Rwanda

12. “[Entrepreneurs] need to get a business plan. And that is a term that is easily misunderstood. People think this is a sheet of paper that people go the internet and download and fill in the gaps. What they need to do is outline their business. You need to understand what you are selling, who you are selling to, why people will buy from you and how much people will pay you.” – Kehinde Oyeleke, founder of Seedvest in Nigeria

13. “Life is about having something to give in order for you to receive. And what is it that you have? You’ve got the brains, the intellectual capital and that will actually open many doors for you. So the first capital that you need, more than money, is intellectual capital.” – Lufefe Nomjana, founder of Espinaca Innovations in South Africa

14. “I have had to be very meticulous with my time, very disciplined, and forfeiting some things like going out with friends on a Friday night. It is challenging but it is worth it. I don’t think of my business as a side hustle. It is something I do with a lot of passion and I am working towards building a sustainable business.” – Sharon Njavika, founder of Ajani Handmade in Kenya

15. “Sometimes you fix one problem and another arises. So you have to be focused, be flexible, and be willing to adapt to changes. Going into employment can be tempting – but I stay put knowing that I will achieve my goals one day, even if it takes 10 years.” – Sam Turyatunga, founder of Tursam Investments in Uganda

16. “Our biggest mistake was perfectionism. For months, we did not want to go out without having a perfect and fully-finished product. But we realised that our main source of improvement would be customers’ reviews. And thus we decided to go out with a MVP [minimal viable product] and gather customer feedback. This made us progress a lot more quickly and efficiently.” – Ted Boulou, founder of Somtou in Cameroon

17. “The secret is in paying your debts. When an investor or a bank gives you their money, just pay it back. They will trust you and help you in future. Even with suppliers, if you build a tradition of paying on time, one day when you’re in trouble they’ll be willing to wait because they know you’re not a conman…. Do not get caught up in trying to impress people with things you can’t afford. Don’t take all your profits and buy a big car to show off. I have been able to work with the same investor, and grow my business because I don’t waste funds trying to live a life that’s not yet mine. I believe any money saved is money earned.” – Obado Obadoh, founder of Café Deli and Delicatessen in Kenya

18. “You can’t succeed if you don’t start. Start your idea with friends and family being your focus group. Also make sure the market is in need of your product and then push ahead. In Africa it’s key to have connections in place. Make sure you build them… The further you can take the idea yourself the easier it will get funded – and the more fundable you will become for investors. It’s a journey worth taking because you contribute towards Africa’s success while building your own – and that’s a journey filled with joy.” – Chris Folayan, founder of Mall for Africa

19. “Younger people are always in a hurry to do things. They want to become billionaires in two years, but in another two years, they collapse. That is why I always advise business people that only time allows you to [get there].” – Mike Mlombwa, founder of Countrywide Car Hire in Malawi

20. “No matter how good a product you have, still in Africa it is your reputation that counts.” – Ivan Mbowa, co-founder of Umati Capital in Kenya

21. “There will be a lot of obstacles on the way. But I never look at failure as failure – I look at it as: ‘What have I learnt from what happened – so that next time I can do things better?’” – Alfredo Jones, founder of Alduco in Equatorial Guinea

22. Never disclose a deal until its clinched –Mutumwa Mawere, Zimbabwe

23. “Integrity is better capital than money. You can accumulate it just like money, and you can use it just like money, but it goes further, and is enduring.”

Mulibwanji…So ZBIN has a lot of members who are based in the Warm Heart of Africa-Malawi. We have an inquiry from one of the ZBIN members based in Lilongwe, she would like to invest in a business but is not sure of what to invest in.

ZBIN Response

Its important to look at the following factors. Malawi is enjoying stability and a steady Economic growth, there is a rising middle class, tourist arrivals show an increase and lastly Donors are back slowly pouring in a lot of Donor Funding.

Middle Class Analysis

You can look at the Middle Class in Malawi and find out what they are spending their monies on. Building houses, education for children, importation and servicing of vehicles (Malawi has a lot of Ex Jap cars like Mozambique, Zambia and Zimbabwe). Analyse patterns of what is happening with this class of people, change in tastes, new trends and find out how and where to invest in.

Tourist Services

Statistics show that the number of tourists coming to Malawi is increasing. Tourists will need accommodation (currently expensive), they need transportation and a lot of services. Look closely at this sector and find possible gaps to invest in.

NGO Needs

Hundreds of US Dollar Millions are being invested in Malawi on a yearly basis. Some of the monies are channelled through the Government and some through independent Non-Governmental Organisations. Most of the funds brought into the country are being spend on the Health, Agriculture, Energy and other Social sectors. Do take a closer look at who is supplying these donors with supplies. If it is health related then they may need various kits, training materials etc. Who is providing these NGOs with accommodation, transport and other services? One good source of information is newspapers-look at all tenders advertised in newspapers and analyse them. It’s a big sector in Malawi and should provide you with a lot of opportunities. We encourage you to create a list of the major donors in Malawi, find out their plans for the next couple of years and the amount of money they will be invetsting. This information will help you in planning on the NGO sectors to invest in.

We wish you the best