He talks about invaluable discussions
LOCAL businesses, particularly those in the small to medium scale sector (SMEs), which participated at the recent economic symposium in Abuja, Nigeria, believe the experience was worthy in reshaping their world-view, including redefining opportunities that exist in challenging environments.
The African Strategic Businesses Discipleship Symposium, which was held from May 19 to May 27, 2017, played host to business people from more than 24 different countries, including Zimbabwe.
Though facing a lot of challenges in different operating environments, fledgling and budding African business ventures are increasingly redefining themselves for success.
The local business delegation — part of which was supported by AFM Zimbabwe through its president Mr Aspher Madziyire — was designed to help consider opportunities in different countries and also promote an appreciation of the obtaining legal and policy frameworks that are helping small and medium-sized businesses to grow.
Participants opine that success in African markets now hinges on being proactive rather than being reactive to business opportunities.
Mr Shephard Kembo, managing director of Fluid and Power Technologies (FPT), who attended the meeting said, “We also discovered that business people do not just complain about the external factors, they also go out and make critical contributions towards various economic growth initiatives.
“We have also discovered that the Nigerians in particular, most of who are known to be shrewd business people, are very aggressive in business.”
The Zimbabwean delegation managed to network with peers from countries such as Ethiopia and South Sudan who, undeterred by either their trying past experiences, are trying to break the mould by fostering the growth of their own businesses.
Over the years, Ethiopia has been blighted by conflict, drought and famine, but it is now considered to be one of the fastest growing economies in the world.
In fact, in May the country eclipsed Kenya as East Africa’s economic giant as the International Monetary Fund (IMF) forecast its economic output for this year, or gross domestic product (GDP), at US$78 billion — US$29 million more than Kenya.
Since 2015, economic growth in Ethiopia has topped 10,8 percent driven by public-led spending on infrastructure and growing consumer demand.
It has slowly become a niche for Chinese investors.
However, South Sudan remains split by a bitter feud pitting President Salva Kiir and opposition leader Riek Machar.
But this hasn’t affected the resolve of their businesses.
The Zimbabwe Government has been investing in policies designed to help local companies grow despite the shackles of sanctions from the United States of America and the European Union bloc.
Industry is currently cheering Statutory Instrument (SI) 64 that became effective in July 2016.
It is however believed that the policy can be further tweaked to make it wholesome.
“Whilst SI 64 may seem to have addressed the need to promote locally produced products, it has not yet addressed the need of plant and equipment as well as machinery spares requirements which affect local production of various goods and products when there are plant breakdowns.
“Also, the liquidity and cash crisis has resulted in long unnecessary delays for employees spending time at the banks.
“Financial support for most companies remain a challenge as well,” explained Mr Kembo.
“The way forward is for business to remain resolute, engage policy makers on robust and constructive engagements to work together and create an enabling business environment. “Business has an important role to play in as far as economic growth is concerned.
“We need to remain positive as business, accept our current challenges and make sure that we do not give up. It has not been easy for business, but we have to accept that we need to continue working together with Government to make sure that we continue contributing towards economic growth,” he added.
Local businesses are bullish of economic growth prospects this year.
In March, the Ministry of Finance and Economic Development, buoyed by positive expectations in mining and agriculture, updated its projection for this year to 3,7 percent from an earlier estimate of 1,7 percent.