A lot of forex is circulating in the informal sectors with experts putting the figure at US$5 billion. This is hard currency not finding its way to the formal banking sector and this is a huge opportunity cost.

What is worrisome is the lack of appetite to attract formal banking through incentives such as interest and other benefits such as overdrafts and loans for the informal sector. Add to this punitive bank charges which means if you bank US$1000, the money will be eaten by bank charges.

And the implications? Banks are becoming a no go area for many informal businesses with most  preferring the mattresses banking system! A look at media reports of robberies and scams shows that many are losing hard earned monies with cases rising on a daily basis.

Some time back we advocated for the establishment of bureau de changes but the proliferation of money changers on the streets has adversely impacted their operations. Money changers have no overheads such as office rentals, security, employment costs and others.

As a result many bureau de changes are closing shop with some converting to money lenders.

Of note is the increased risks of changing your funds from the streets. There are instances of bank transfer reversals or being handed fake currencies. You exchange US$10k on the street, get a bank transfer of ZWDL 130,000 and happily leave after confirmation of funds in your account.

Is all Ok? Not really as the bank can reverse the amount deposited in your account and when you try to get in touch with the money changer—his phone now unreachable! Because the transaction is illegal, there are no avenues for recourse and as they say on the streets—zvavharana!

You change your money and get an Ecocash deposit and like in the case above—similar loss results.

Be wary of money changers thronging most Whatsapp groups, this has become a haven for scammers who offer too good to be true rates. They are taking advantage of the fact that one cannot report to the police for recourse.

Do not click any send to your Facebook Inbox account—your inbox is now a high risk area as criminals prefer to lure you in the privacy of your inbox. Phishing normally happens away from the public glare although of late our Facebook forum has been struggling with scammers who publicly post their Telegram links.

Secure your accounts with 2 pin codes –that is requirement to log in to your accounts using an sms send to your phone. However this is not enough as scammers seem to be finding ways to break through the 2 pin code system.

Keep following the public media which is doing a sterling job in highlighting and exposing cash related risks.

Little is known of Angola by Zimbabweans, the only contact we have with Angola is on the soccer field when our teams square up. Very little in terms of other spheres particularly business. Add the past civil war (1975-2002) and language barriers and Angola has practically been a no go area.

Angola Statistics

• Population: 30 million
• Currency: Kwanza
• GDP:$302 Billion
• Inflation: 15%
• Trade Stats: 2017 Figures (Exports $33 billion and Imports $19.5 billion)
• Exports: Crude oil, diamonds, refined petroleum, coffee, sisal, fish, timber and cotton
• Imports: Machinery and electrical equipment, vehicles and spares, medicines, food, textiles and military goods
• Current account: -$1.2 Billion
• Unemployment: 6.77%
• Main industries: Petroleum, diamonds, iron ore, phosphates, feldspar, uranium, gold, fish processing, food processing, brewing, tobacco product, sugar textiles and others
• Foreign reserves: $17 Billion

So we held a weekend long ZBIN Premium Chat with Rui Matata and he shared great insights into opportunities in Angola,

Open for business: Like Zimbabwe, they had a new administration coming in 2017, in Angola President Joao Lorenco  took over from Dos Santos and he is pursuing radical economic policies of opening up the economy, diversification and ramping up production,

No Visa for Zimbabweans:  You do not need visas to visit Angola for 30 days,

Online Company Registration: You can open a company online within 30 days,

No need for local partnerships: The requirement to partner locals by foreign investors was waived meaning you can fully open and run your own business operations,

No minimum investment: You can invest from as low as $1000 or $5000, there is no limit to what you can invest in Angola,

In terms of opportunities Zimbabweans can pursue in Angola, the focus is on aligning to government priorities of local production and creating local opportunities such as employment and also earning export receipts. The country for long had relied on oil export receipts but due to unstable prices, they are diversifying the economy.

Textile Industry: A Zimbabwean investment group Baobab has made history by opening 3 large textile companies with the second one commissioned on Monday 15 March 2021. This shows the trust and confidence in Zimbabwean expertise. Multi million dollar investments which will shape the future of the textile industry in Angola. Opportunities for training locals in sewing and clothes making, carpet making and others.

Agriculture: Zimbabweans may need to study various Agricultural value chains and analyse opportunity gaps especially agro processing.

Fintech: Strive Masiyiwa recently posted about a data cable being constructed that connects Angola with the rest of the Central and East Africa region such as Congo, DRC, Rwanda and Kenya. The country previously had no bureau de changes facilitating forex changing and remittances of funds. Mr Rui Matata is working with a Zimbo IT expert to resolve the issue. With Zimtrade having urged Zimbabweans to export Fintech expertise, Angola should be a key investment destination.

Colleges: There is a push for the country to fully integrate into English Speaking communities for access to global opportunities with English being vigorously pushed as a language of choice. Therefore English being taught from primary school. So opportunities to set up English speaking colleges and even online platforms.

Mining: If you read our 2018 Business Opportunities for Zimbabweans book, then you should have noted one of the start investments on Angolan Diamond Mining Partnerships. Liberalisation of mining empowered local communities to own diamond deposits but some had access to mining equipment constraints. Of course there are a lot of other minerals that abound in the country.

Exports: Zimtrade website has a list of export opportunities to Angola that include a lot of farming produce. All the land in Angola is government owned with some available for lease.

Way forward for ZBIN

We have formed a steering committee which will register a separate ZBIN Angola Opportunities forum which will spearhead investment in Angola. It will carry out detailed researches and develop business plans. The committee will also arrange for a forum visit to Angola later during the year.