(MONITOR UG) Maama Fiina, the business empress
Ms Sylvia Namutebi explains how she has managed to succeed in different business. She says it is not wise for an entrepreneur to invest in one business entity.
Ms Sylvia Namutebi explains how she has managed to succeed in different business. She says it is not wise for an entrepreneur to invest in one business entity PHOTOs BY edgar r. batte.
By EDGAR R. BATTE
Posted Saturday, January 11 2014 at 02:00
In Summary
From start up capital of Shs38,000, the leader of Ugandan traditional healers has managed to grow a business empire worth Shs500 million.
At 16, she quit her first job as a house help and resorted to hawking merchandise on the streets of Kampala.
That was in 1995. Sylvia Namutebi, aka Maama Fiina, started with an initial capital of Shs38,000 to buy polythene bags which she started selling at Mini-price, in down town Kampala. She says she does not earn from witchcraft as many would assume.
“I was hungry to increase this money because I was not only going to blame myself but the woman who had given me the capital. I learnt that when fellow hawkers bought polythene bags from us, they would sell them at a profit in the Old Taxi Park, so I changed my working station to the park. There were more people, more business and generally I saw an opportunity to sell more,” Namutebi explains.
Her first duty stations were at the Kayunga, Mukono and Jinja taxi stages. She says she was both hardworking and lucky. “I found the polythene bag business profitable. After six months, my business was worth Shs160, 000. Then a friend told me that we can go to Nairobi and buy clothes in wholesale and sell at a profit. I bought into the idea, saved more and travelled with her to Nairobi. That introduced me into the fabrics business,” she explains.
After four trips she recalls making a profit of Shs800, 000. She kept at it and in three months, she realised profits of Shs3 million. She was really very strict and saved every penny.
“In November 1996, I felt I wanted to start rewarding myself a little. I had dreamt of driving a car. By this time, one could buy a second hand car at Shs1.4 million,” she recounts.
“But right about the same time, a gentleman, who would later become my boyfriend, drove past me around Namasuba one midmorning. He bought me a phone and gave me Shs7 million cash. I was excited. I used part of the money to buy a Matatu. From one Matatu I was able to save and buy another, and another,” Namutebi says.
Along the way, she met her current husband Ali Kyonjo with whom she was able to broaden her business horizons. “I had more money than he had but he was immensely industrious. At this point, I went into importing and selling busuti (gomesi attires). In 1998, I made my first trip to Dubai to go and shop for merchandise. All along I never for a day forgot that I was not educated and that I could not afford to mess with my businesses,” she explains.
With a phone, a rare possession at the time, Namutebi started making friends through calling in on radio. This, she says, earned her political capital. “My businesses started growing. Gomesi attires earned me the most profits. By 1999, I would make up to Shs30m in both the clothing and transport businesses. I had about five cars operating on the Kampala-Jinja highway. At the time, each Matatu cost Shs8.5 million,” she recollects.
Namutebi says she saw another opportunity in motorcycles or boda boda business. “I would buy the boda bodas and give them to riders on a loan scheme.
I would buy the motorcycles at Shs720, 000 each and tell the riders to return Shs1.4m on completion of the loan. This meant I earned more than 100 per cent on each boda boda.”
Because of the high profits, the business woman was able to grow her business to 500 motorcycles in Kampala. She says she started with 20 motorcycles which grew the business to 500 motorcycles.
Today, Namutebi has branched into real state which she says is equally rewarding. “As a trader it is not wise for you to deal in one thing. If you go to buy shoes and find there are no shoes, buy socks or buy shirts,” she argues.
Call on women
Namutebi encourages women to go into business because, as she says, women are better business managers than men. “Work hard, pray and trust in God, be honest and trustworthy. Women should no longer think that men are their sole providers. It is satisfying to be earning your own money. Do not undermine yourself. You might even be lucky that you went to school. I did not, so go use that knowledge,” she advises.
Although she does not own a car bond, Namutebi says she buys and resells cars at a profit. She adds that it is not wise for an entrepreneur to invest in one business entity or one item.
She says that is how she has managed to grow her business empire to a float of Shs500 million. “Whenever I go to Dubai, China, Turkey or Europe to buy merchandise I will go with about $15,000 (about Shs38m) or $20,000 (about Shs50m),” she says.
“I have managed to get people who run my businesses so now I am always shopping to strengthen the business. I travel every two to three weeks. Distribution of my business into different items and entities has helped spread my profit since out market is not predictable.”
But as Namutebi explains business has come with its challenges too. “There are so many sub-standard things these days,” she points out.
rbatte@ug.nationmedia.com
Labels: BUSINESS, WOMEN
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Nyambirai denies fronting for Masiyiwa
28/04/2012 00:00:00
by Business Reporter
TN Holdings founder and chief executive, Tawanda Nyambirai has insisted that he is “his own man”, dismissing speculation that he was a front for thenon- telecoms business interests of South Africa-based mogul, Strive Masiyiwa.
Nyambirai founded TN Financial Holdings in 2001 and engineered the group’s listing on the Zimbabwe Stock Exchange in 2010 through the reverse take-over of furniture manufacturer and retailer, Tedco Limited.
In addition, Nyambirai also chairs the Zimbabwe operations of Masiyiwa’s Econet Wireless while the telecoms entrepreneur has also become a key shareholder in the fast-expanding TN Holdings.
However, while admitting that it would be an honour to be a “front” for Masiyiwa, Nyambirai insisted that this was not the case.
“If there is anybody I would love to front for it is Strive Masiyiwa … it would be an honour,” Nyambirai said in an interview.
“Masiyiwa (is) an honest, generous, kind and humble man. He declared that his first (Econet Wireless) dividend after profit would go to charity and when he realized it he did just that and I personally distributed the money and would manage it for him and give it to charity so I know he kept his word ... he has educated over 40 000 orphans in Zimbabwe.
“So for people to say I am a front for him is a compliment and a privilege! But he is a shareholder and he is known and cited everywhere in the records as a shareholder at TN.
“People who do fronting deals do not do that. They are unknown in the background as the fronts play the role of owner. He would have been in the shadows.”
Nyambirai said Masiyiwa became a key shareholder in TN Holdings after the Reserve Bank of Zimbabwe (RBZ) ruled that bank executives could not be controlling shareholders of institutions they are supposed to be running.
“When the RBZ said I should dilute my shareholding I asked myself who the best person to partner with would be and I thought ‘Strive!” Nyambirai said.
“I was humbled and honoured when he had the confidence in me and my business to buy the shareholding. I am my own man and I have a shareholder in Strive whom I greatly admire!”
He also said TN Holdings was awaiting regulatory approval for the establishment of a cattle bank, a first for Zimbabwe. The proposed bank would allow farmers and individuals to use their stock as collateral when accessing credit.
“At the moment we are moving through the regulatory corridors,” he said.
“Steps are being taken, we have people all over the country talking to people, telling how they view it if we launch a cattle bank and the outcome is amazing.
“What is overwhelming is that it is not only rural people who are enthusiastic about the idea but also urban people.
“We have people living and working in the city who also have cattle in their rural homes as wealth and assets and they are very interested in the concept.”
Nyambirai said although significant progress had been made in improving operating conditions for business, the lack of liquidity remained a huge challenge.
“We operate in an environment and the major characteristic is illiquidity. We are operating in an illiquid market and whatever we do, we have to deal with that challenge,” he said.
“The way it affects us is there is more demand for credit than cash and very little cash is available. We have had to come up with strategies to deal with that problem and we seem to be winning.”
Labels: BUSINESS, TAWANDA NYAMBIRAI
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Zamtel unveils $120, 000 Levy Business Park outlet
TIME PUBLISHED - Wednesday, November 30, 2011, 1:56 pm
Zamtel, Zambia’s only total communications solutions provider has today opened a customer service outlet at the new Levy Business Park. Unveiling the outlet this morning, company Chief Human Resources and Administration Officer Eve Banda said the company spent $120, 000 on the centre.
“The Zamtel outlet at this multi-million dollar facility is strategic to both the business and customers as it is uniquely housing a desk dedicated to SME and Corporate/Enterprise customers for on-the-spot business solutions.
A unique feature about Zamtel is our focus towards providing a unified customer service excellence across all touch points in the country” said Ms. Banda.
Earlier in the year, Zamtel embarked on a journey to improve its ability to deliver accessibility and affordability to customers through renovated world-class service points.
The Levy Business Park outlet becomes the latest on the list of revamped customer centres after Manda Hill, Cairo Road, Crossroads Shopping Mall, Lumumba Road, and Livingstone’s Falls Park Mall.
“Refurbishment works have also started at the Ridgeway customer centre in Lusaka and next we are moving to Chipata and Kitwe. Purposefully, the Zamtel outlets are steeped in innovation as true one stop shop Centres where customers can pay bills, buy sim packs, scratch cards, latest handsets, and browse the internet set up for their business and personal pleasure’, she said.
The company has invested in state of the art technology and friendly staff to ensure the customers gets the best service.
Labels: BUSINESS, ZAMTEL
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Government as conductor of new enterprises
22/06/2011 00:00:00
by Tafirenyika Makunike
COUNTRIES which have successfully implemented enterprise development programmes tend to focus on the needs of the local entrepreneurs first before trying to please external investors. Our parliamentarians who sit in the august house really need to agree on what should be done to make new enterprises thrive in the Zimbabwean domestic market.
Business and technology incubation which I started discussing in my previous article and continue this week is just but one aspect of enterprise development. A well thought-out enterprise development strategy would assist the country to create quality jobs even as we march towards a common market in Africa in the not too distant future.
They say only five to 10% of the world population are truly entrepreneurial, so we should stop trying to convert every person into an entrepreneur. Those who want to be professionals in their chosen fields should be allowed to do so. What Zimbabwe currently lacks is a critical mass of entrepreneurs to sustain broad base enterprise development. We are still very far off from having our very own 5%, so we should promote borderline cases of entrepreneurship by creating an environment that minimises chances of failure.
I remember back in the late 1980’s there were so many ground-breaking innovations created by researchers at the University of Zimbabwe. The academic mantra then was publish or die, so academics were not concerned with anything outside of publishing their research articles in reputable journals to enhance their professional standing. In fact Professor Phineous Makhurane and his team who initially established the National University of Science and Technology had in mind to work in this space which others have subsequently christened the “innovation chasm”, which links raw research to applied technology that is necessary for the economic advancement of a country.
A few years back, I visited formerly strictly “stiff upper-lip” premier British institutions like Cambridge and Oxford. They were also late comers in commercialising academic research but by the time we visited the bug had really caught on.
Between the technology incubator environments of both Oxford Innovation Centre and Cambridge Enterprise, they have established enterprises worth millions of pounds in sectors ranging from biotechnology to medical engineering. They have also realised that knowledge is not just something to be fascinated with but can also be used to create wealth.
Over the years, I have attended several UKBI incubation events. I noticed in Birmingham, Sheffield, Cardiff, Coventry and Leeds they have taken old industrial buildings in some cases that were virtually derelict and allowed incubators to set up new businesses thereby rejuvenating decaying parts of the city. In places where they are more bold like Swansea, they have built cutting edge science parks which speak the language of innovation.
Zimbabwe has created many excellent centres of learning right across the country over the years since independence. Notwithstanding, what good is education if you acquired it hungry and you still remain hungry many years after graduation with just a footnote in your life of a black gown hanging in your lodging apartment and an extension to your name?
Partnership in setting up an incubator project does not need to be limited to just the universities; it can cut across chambers of commerce, government municipalities, youth organisations and even NGOs.
NUST can jointly set up a science and technology incubator with the Bulawayo City Council and the local chamber.
The City of Mutare can set up an agro-processing and timber industry incubator with Africa University and Timber Industry Federation.
The City of Harare jointly with CZI, ZNCC, the University of Zimbabwe, Catholic University and Women’s University in Africa can set up multiple site incubators promoting various causes.
Great Zimbabwe University and Masvingo Municipality can create an incubator focusing on tourism related products.
Lupane University and Lupane Rural District Council can create and incubator that assist entrepreneurs adding value to the teak and other hard woods logged in the area.
Chinhoyi Municipality and Chinhoyi University of Technology could focus on new companies providing value addition along the agricultural continuum from social scientists to post-harvest specialists.
When the government set up the Scientific and Industrial Research and Development Centre (SIRDC), it had its heart in the right place but the process was not thought through properly. While the place is staffed with highly-qualified researchers doing wonderful work, the missing link are the entrepreneurs who will convert the wonderfully researched ideas into opportunities which will make money and create jobs.
Key to establishing incubators is the management you put in place. The incubation centre manager must be an experienced business professional, preferably with an entrepreneurial track record. We do not want someone who has never set up even a tuck shop in Zengeza advising people how to establish and run a business. Even with all the qualifications, all they would give you is imported bookish information which has no relevance in the Zimbabwean matrix.
It is the incubator manager who should play the role of hand-holding the entrepreneurs, whether to funding sources, business linkages with bigger companies or even to Standards Association of Zimbabwe to ensure that products are produced to the right standard. The manager would also ensure there is an appropriate balance of businesses and not everyone is trying to do the same thing.
The incubator can also be a medium of providing on-going training and development keeping these new businesses up to date with various changes in the business and specific industry or the Zimbabwean economy as a whole.
Last time the government just rushed to build factory shells which were left empty for long as there were not always takers. A business incubator goes beyond the factory shell model, it combines buildings, people, ideas and market opportunities to create viable enterprises that will sustain themselves beyond one generation. To make it really sustainable, it is important that companies created and incubated must pay for the service as soon as they start generating income.
The free seed and fertiliser mentality that started at independence created a dependency syndrome that we are still suffering under even today. There is a mindset that everything which comes from the government is free. We even see this mindset in our members of parliament. They think they should get all those double cabs for free.
You would expect at that level that they would understand that there is no endless supply of money sitting somewhere particularly in a country where we still pay our teachers and nurses less than $500, but then probably that is too much to expect from our honorable members?
Tafirenyika L. Makunike is the chairman and founder of Napachem cc (www.nepachem.co.za), an enterprise development and consulting company. He writes in his personal capacity
Labels: BUSINESS, ENTREPRENEURS
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Businessman denies using Rupiah ties to exploit Lafarge
By George Chellah
Sat 15 May 2010, 03:10 CAT
Time Tracking managing director Umesh Patel has been accused of forcing some officials at Larfage Cement to give him business on account that he is one of the financiers to the ruling MMD. But Patel yesterday dismissed the allegations as rubbish. According to sources at Larfarge, Patel has been boasting that he is very close to State House and President Rupiah Banda.
“In fact, Mr Umesh Patel has been threatening to cause the deportation of two senior managers at Lafarge using his connections with State House. It is not only Larfarge that is in trouble,” the source said.
“Umesh Patel has grown big-headed because he is very close to the President. In fact, we are aware that he was at State House yesterday (Thursday) in the company of two people. But this nonsense must be stopped. He is going round boasting that he supports the MMD financially and meets President Banda as and when he feels like so nothing can happen to him.
The other day he was boasting that he donated K48 million to the MMD. Even if Mr Patel is donating money to MMD, we do not think President Banda can allow his behaviour. It is possible Mr Patel is abusing the President’s name. We are not convinced that the President can condone that behaviour.”
But when reached for comment yesterday, Patel said: “I don’t think that’s right…oh my God! Whoever told that information to you, tell him to go to hell because that’s all wrong. Okay, phone me on Monday when I am in town.”
When further pressed to give his comment over the matter, Patel answered: “It’s all rubbish!”
Labels: BUSINESS, CORRUPTION, LAFARGE, RUPIAH BANDA, UMESH PATEL
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Govt abolishes minimum capital requirement
By Mutale Kapekele
Fri 14 May 2010, 04:00 CAT
THE government has abolished with immediate effect the minimum capital requirement to start a business as part of the ongoing legislative changes aimed at reducing the cost of doing business.
This means that
greenfield businesses do not have to show proof that they have the capital to venture in a business before registration. Announcing the development in Lusaka yesterday, commerce minister Felix Mutati said
170 of the 517 business licences will be eliminated.
Mutati also announced that 57 licences would be reclassified and 99 amalgamated into 21 as part of the reforms.
“Currently, the licences we have are too many and the requirements to get them are cumbersome, time-consuming and do not assist businesses to go ahead,” Mutati said.
“Some of them are as old as 1935 and we took a decision to eliminate all the unnecessary licences and so far 23 have already been eliminated, one has been reclassified, and 40 Bills have been drafted to incorporate business licensing reform recommendations.”
He said the licensing reforms were just a beginning of programmes aimed at reducing the cost of business which he said was increased by K2 trillion per year as a result of licensing and time wasted in trying to acquire them.
“We don’t want people to spend too much time in corridors pushing for licences that are a burden; that robs them of time that they could use for economic activities,” Mutati said.
He also announced that a team from the World Bank would at the end of this month tour Zambia to assess its business environment.
Mutati hoped that at the end of the World Bank ‘inspection,’ the country would rank better than the 90 slot it currently occupies on the bank’s doing business ladder.
Labels: BUSINESS, ENTREPRENEURS, FELIX MUTATI, LICENSES, SMEs
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Business forum set for Accra
ZIMBABWE and Ghana are expected to hold a business forum here at the end of this month, a platform that will bring together business persons from the two countries in a development that is also expected to strengthen bilateral relations.
The forum, which is expected to draw more than 400 participants, is being organised by the two countries’ embassies and will see business persons from the two countries share notes and identify areas of cooperation between the two countries. Preparations for the forum also coincided with a visit by Deputy Prime Minister Thokozani Khupe to Accra.
She is also expected to meet both members of the public and private sector to learn from them how women in Zimbabwe can best be empowered. The forum will be held on May 31 2010.
In an interview, Zimbabwean Ambassador to Ghana Mrs Pavelyn Musaka said preparations for the forum were at an advanced stage.
She said she was liasing with Zimbabwe Investment Authority, Zimbabwe National Chamber of Commerce from Harare and Ghana Investment Promotion Centre in Accra. “It is quite exciting because the forum is coming at a time when Ghana has just made a discovery of oil which is estimated to realize about US$20 billion in the next 20 years when fully explored,” said Mrs Musaka.
“We are inviting members from both the public and private sector, women entrepreneurs, Zimbabweans in the diaspora to attend the forum.
“The discovery of oil in Ghana’s Western region is also expected to assist downstream industries like those in the manufacturing, infrastructure, agri-business, construction, among others.”
Zimbabweans will share with their Ghananian business counterparts their knowledge in commercial agriculture, tourism and construction, said Mrs Musaka.
“Our embassy here is convinced that Zimbabwe has a lot to benefit, since Ghana imports 70 percent manufactured products and there are real chance of creating a lucrative lunch markets here for our small to medium enterprise and other businesses,” said Mrs Musaka.
Trade between Zimbabwe and Ghana has been low and the forum will give a platform for the two countries to identify possible areas of cooperation as the two countries seeks to enhance trade and bilateral cooperation between them.
“The coming of the Deputy Prime Minister of Zimbabwe cannot be at a better time than now, as we prepare this forum. We hope that she will also share experience from both the public and private sector here on possible areas of cooperation,” she said.
DPM Khupe was accompanied by Public Works Minister Theresa Makone on an official four-day visit where she will met leaders from both the public and the private sector.
She visited Elimina Castle, in Central region on Monday, where there is a museum and she was shown a holding house for slaves while they awaited their transportation to Europe during the slave trade.
Ghana has preserved the house and turned it into a museum and monument as it reflects the slave trade that saw many Africans being captured by Europeans to go and work as slaves.
The DPM was in Bangladesh where she met Government representatives, central bank management and Grameen Bank in her quest to establish a women’s bank.
It is envisaged that the women’s bank would lend money to women with no stringent conditions attached like requiring of collateral security.
Requirement of collateral has in the past years been a stumbling block in Government’s efforts to empower the marginalised, as many financial institutions have demanded collateral as a pre-condition to lend loans.
Labels: ACCRA, BUSINESS, THOKOZANE KHUPE
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Envoy urges Zambians to emulate Nigerians’ business attitude
By Mutale Kapekele
Fri 19 Feb. 2010, 04:00 CAT
NIGERIAN High Commissioner to Zambia Marcus Folake-Bello has said Zambians should
emulate Nigerians’ aggressive business nature for the country to grow its Small and Medium Enterprises (SMEs) into big corporations.
In an interview on Tuesday night, High Commissioner Folake-Bello said Nigerian businessmen were also learning from Zambia’s organised way of doing business.
“As a country Nigeria, we have learnt a lot from you Zambia because the government has managed to organise the way business is conducted, that is a big plus,” High Commissioner Folake-Bello said.
“Zambia can also learn from our business aggressiveness. That is what has made small businesses in Nigeria become big corporations. That is why there is a saying that if you get into a country and there is no Nigerian, leave!”
She said it was time for African countries to lean on each other and develop the continent further.
“There is this negative perception about Nigerians because where you see one Nigerian, you will think there are four because of the larger than life appeal that we have,” she said.
“We hope that negative perceptions about our country will end because now is the time that all Africans should lean on each other to grow and develop our continent economically.”
High Commissioner Folake-Bello said she was glad that Nigerian companies, like Access Bank that invested in Zambia were expanding and recording huge profits.
“I am so proud that Access Bank has grown because there was lots of speculation about the bank before it came,” she said.
“Nigerian banks are setting up new pace in the banking sector in Africa. And it’s not just them, Nigerians that have invested here are doing fine. And don’t think it’s easy to do that. It’s not easy to get here, there are a lot of immigration issues and many other things that have to happen before you set up a business.”
She said Nigerians were attracted to Zambia by the peace that country was enjoying.
“Zambia has an attraction of peace,” said High Commissioner Folake-Bello. “It is actually unfair that some people think this country has weak investment laws. We respect this country and there is nothing weak about Zambia.”
Labels: BUSINESS, MARCUS FOLAKE-BELLO, NIGERIA
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First Lady urges Americans to invest in Zambia
Tuesday, January 26, 2010, 7:14
First Lady Thandiwe Banda has appealed to the people of the United States of America to take advantage of Zambia’s conducive political and business environment to invest in the country. Mrs. Banda has also reiterated that Zambians consider peace as an essential ingredient for current and future development initiatives hence they promote it.
She was speaking in Beverly Hills at the Fox Entertainment Studios in Los Angeles, USA, last night at a cocktail party held in her honour by the Fox Entertainment Group.Mrs. Banda, who is here at the invitation of a not-for profit organization, Prevent Hate, is accompanied by 13 Zambian businesswomen who were today scheduled to attend an entrepreneurial workshop.
The workshop is aimed at fostering business linkages between Zambians and their Los Angeles counterparts. At the cocktail party that was attended by an array of Hollywood stars and business persons, Mrs. Banda said Zambia was an ideal investment destination because of its political stability, abundant natural resources and enabling business atmosphere.
She emphasized that it was important that Zambians and the business persons of Los Angeles took advantage of the twin-city relationship that has existed between Los Angeles and Lusaka since 1968. And Fox Entertainment Group senior vice-president Mitsy Wilson said her organization was honoured to host Mrs. Banda who was accompanied by Tourism, Environment and Natural Resources Minister Catherine Namugala.
And in an interview with Fox News, Mrs. Banda said peace was an asset that Zambians could not afford to lose as there were many lessons from many African countries about what would happen in the event of turmoil.
Mrs. Banda told anchor Susan Hirasuna that Zambian people were determined to preserve their peace, which was why she would keep on being a crusader of peace initiatives, hence her acceptance to Prevent Hate’s invitation.
While here, Mrs. Banda has visited the Jenesse Centre for Domestic Violence, a modern shelter for victims of violence where they receive comprehensive services such as job training, counseling and legal help. The first lady’s delegation has also toured the Los Angeles Museum of the Holocaust with the aim of creating an understanding between Zambians and the Los Angeles Jewish community.
Mrs. Banda, who arrived here last Thursday, also spent time with Zambians living in California at social evening hosted at the residence of Mr. Kalima Chimpampwe where Zambian athlete Prince Mumba was among the guests. Mrs. Banda urged the Zambians here to invest their earnings in Zambia so as to contribute to the country’s development.
And president of the Association of Zambians in California, Mwelwa Mulenga, appealed for the establishment of a consular in California, saying the state had a population of over 4,000 Zambians.
Meanwhile, Mrs. Banda yesterday attended church service at the West Angeles Cathedral at the invitation of Bishop Charles E Blake. Mrs. Banda was given time to address the congregants and in her speech, she thanked Bishop Blake for supporting African children through his charity, Save Africa’s Children.
ZANIS
Labels: BUSINESS, INVESTMENT, THANDIWE BANDA
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Kobil raises stake in Ndola-based lubricants firm
By Chiwoyu Sinyangwe
Wed 20 Jan. 2010, 04:00 CAT
KOBIL Zambia has raised its stake in Ndola-based lubricants blending firm Lublend through acquiring the 10.5 per cent stake previously owned by Chevron.
Kobil Zambia, which is a subsidiary company of KenolKobil, Kenyan oil marketer, said its lubricants business had grown by 47 per cent since 2008, fueled by increasing demand from the mining, industrial, transport and construction sectors.
Following the acquisition, Kobil Zambia's stake in Lublend has increased to 25.5 per cent after an initial acquisition of 15 per cent from Total Zambia in 2008. The acquisition was done with a blessing from KenolKobil.
And KenolKobil stated that move fitted in its strategy of diversifying its business in the region adding that the move would strengthen the company's market share in the robust lubricants business in the country.
“The new acquisition will give the KenolKobil Group more control of the management of the plant and will also give it more representation in the company's board,” the firm stated.
“The move will strengthen the company's market share in the robust lubricants business in Zambia.”
Commenting on the development regional support manager Patrick Kondo said the additional shareholding in Lublend Limited would help KenolKobil to get more control in the blending company.
Kondo said the move would strengthen the company’s market share in the lubricants business in the country and was in line with their diversification strategy.
He said the approach had seen the company nearly double its retail network in Zambia to over 25 within the last two years.
“The new acquisition will give the Group more control of the management of the plant and will also give it more representation in the company’s board,” Kondo said.
“Together with its recent entry into supplying the mining sector, Kenol Zambia is seeking to consolidate its market position as the number three oil company in Zambia.”
Kondo disclosed that there were plans to intensify Kenol Zambia’s interests in the mining sector within the Copperbelt region and help it reduce the dominance by the multinational oil companies.
“Kenol Zambia is looking beyond the Zambian borders to the export markets of the Lubumbashi area of DR Congo, Zimbabwe and Malawi,” said Kondo.
In the third quarter of last year, the Nairobi-based company assumed effective control of its subsidiary in Burundi making it the seventh member in the KenolKobil Group.
Labels: BUSINESS, KOBIL ZAMBIA LTD
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Zambians are not utilising their talent, says L/stone DC
By Edwin Mbulo in Livingstone
Tue 19 Jan. 2010, 04:00 CAT
LIVINGSTONE District Commissioner Francis Chika says that Zambians have not utilised their talents to earn a living and sustain their future, despite being highly talented.
During the opening ceremony for the Business Skills Training workshop for Southern Province based artists at Chapa Classic Lodge; Chika said that Zambians lacked exposure in vital skills such as starting a business.
"Zambia is one country which is endowed with rich talented cadre of people in various arts. However, it is a pity that not all of them have utilised this talent not only to earn a living but to sustain their entire future. This is due to lack of exposure in vital skills such as starting a business, developing a business plan, costing and pricing and indeed marketing," he said.
He thanked the Finnish government for making available 52,500 Euros (about K357 million) to cater for the countrywide training workshops.
" Countries that appreciate and invest in their own culture also advance in development. I would like to assure you that Zambia is not lagging behind in far as this concept is concerned. The Fifth National Development Plan FNDP has also prioritised investment in arts and culture. It is for this reason that here in Livingstone, government is constructing Maramba Cultural Village specifically to be the venue for production and marketing the arts with a view for sustainable human development and preservation of our cultural heritage," said Chika.
And International Labour Organisation (ILO) Broad Based Wealth and Job Creation senior technical advisor, Jealous Chirove said the ILO through a project - Strengthening Creative Industries in Zambia - is looking at turning the arts into an industry, which could create job and generate foreign exchange.
He said the project would train about 180 artists.
"We look at artists and creative arts as an industry which can lead to the creation of jobs and foreign exchange earnings. Our target is to train 20 artists from each province with the support of the Finnish government," he said.
Chirove added that the project would also endeavour to link artists to other programmes such as financing programmes such as the Citizens Economic Empowerment Commission (CEEC).
"Any business expansion needs financing, so we need to link our trainees to other on going programmes in the country so that they can access financing such as the CEEC," said Chirove.
And National Arts Council (NAC) assistant director Adrian Chipindi said the training programme had caused chaos among the artists and there was need to train more.
"We have a lot of artists so when we train 20 like in Lusaka, we create chaos because there are many more who need training," said Chipindi.
Labels: BUSINESS, FRANCIS CHIKA, WORKSHOPS
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Zambia improves doing business ranking in Commonwealth
By Larry Moonze
Fri 27 Nov. 2009, 04:00 CAT
THE International Finance Corporation (IFC)’s Doing Business Report 2010 has listed Zambia among Commonwealth countries that have improved their doing business rankings over the past year. And Commonwealth Business Council (CBC) director general Dr Mohan Kaul said 20 of the world’s fastest growing economies were in the Commonwealth.
Addressing the 2009 Commonwealth Business Forum (CBF) in Trinidad and Tobago staged on the Serenade of the Sea cruise liner (ship) on Tuesday, Dr Kaul said for the first time the Forum had a formal link with the Organisation of American States.
“According to the International Finance Corporation’s Doing Business Report 2010, five Commonwealth countries are ranked in the global top ten for ease of doing business: Australia, Canada, New Zealand, Singapore and the United Kingdom,” Dr Kaul said.
“Commonwealth countries that have improved their doing business rankings over the past year include Mauritius, Mozambique, Samoa, Sierra Leone, and Zambia.”
He said the combination of good governance and sound market-friendly policies was working.
Dr Kaul said improvements in the investment climate in many countries had led to increased domestic and foreign investment.
He said CBC had been working to help strengthen the investment climate including through the biennial Business Environment Report.
However, Dr Kaul observed that since the last CBF in Kampala in 2007, the global economic crisis had taken its toll on all Commonwealth economies.
“While the first signs of global economic recovery or stabilisation are now showing, we are acutely aware that most countries have felt a sharp downdraft from declining export revenues and foreign direct investment,” he said. “Nonetheless, over the past decade, for the large majority of our countries, improvements have led to strong economic growth, averaging five to seven per cent in many Commonwealth countries.”
Dr Kaul said the Commonwealth had a distinct advantage in that member countries shared the global language as well as common political and institutional features.
He said member states used those assets to address poverty through growth.
“Now twenty of the world’s fastest growing economies are in the Commonwealth,” Dr Kaul said. “We have seen the emergence of middle income countries like Trinidad and Tobago and others in the region that are successful in attracting investment, engaging in international trade and becoming net contributors to the global economy.”
He said investment in education and skills development stood out because they would provide the foundation for longer-term growth, adaptation and competitiveness.
Dr Kaul said another call to action was acceleration of regional economic integration.
“This is never easy as it often requires short term sacrifices for individual countries,” Dr Kaul said. “But it is an irreversible global trend. Businesses want access to larger markets, which offer economies of scale and operation. This applies to every Commonwealth country.”
He said this year’s forum would issue specific recommendations to governments on priority areas ranging from improved access to finance, developing infrastructure, creating the right foundation for strong and prosperous small and medium enterprise (SME) sector, addressing skills shortage and human resource availability, adopting business friendly tax policies to tackling corruption and improving corporate governance.
Dr Kaul said on its part, the CBC would help remove barriers to trade by pushing for the conclusion of the Doha Development Round of world trade negotiations.
He further said the CBC was developing programmes to involve SMEs and facilitate connections with larger companies to enhance business linkages.
Dr Kaul said the CBC would continue a series of activities and events to mobilise investment.
He said the council was implementing an initiative on Business Action Against Corruption to ensure good governance in Commonwealth member countries.
Dr Kaul said the council was working with partners to expand business engagement for the achievement of the Millennium Development Goals through the United Nations Call to Action.
Labels: BUSINESS, COMMON WEALTH, ZAMBIA
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Business icon Punyu passes away
03 Nov 2009
OSHAKATI - One of the first and most well-established businessmen in northern Namibia, Jarius Shikale, popularly known as ‘Punyu’, died of kidney failure last Thursday aged 59. Shikale died in the evening at Onandjokwe Lutheran Hospital.
He had been battling diabetes for a long time and had one of his legs amputated. He was hospitalised at Onandjokwe Lutheran Hospital’s private ward for quite a while, from where he was later discharged.
A few days after he was discharged, Shikale went into a coma and eventually succumbed to illness.
Shikale was the owner of the Punyu Group, an umbrella group of companies that conducts several businesses including supermarkets and service stations. He was the owner of a classy hotel and casino Punyu Hotel, housing properties including Punyu village, consisting of over 50 houses in Ondangwa and a stone crusher in Tsumeb.
Shikale also owned supermarkets and service stations at Ondangwa, Okahao, Oshivelo, Tsumeb, Onuno, Oniipa, Ohangwena, Onethindi and other parts of the northern regions.
In a press statement released by the Namibia Chamber of Commerce and Industry (NCCI), the organisation’s Chief Executive Officer Tarah Shaanika expressed shock and disbelief over the death of Shikale.
Shaanika described Shikale as a selfless, hardworking, skilful businessman who had been always willing to support others especially upcoming entrepreneurs.
“Shikale was not only a prominent business personality in Namibia, but also an active member of his community. He contributed immensely to the wellbeing of his people through generous financial, material, and other forms of support,” said Shaanika.
Shikale is survived by his wife Abia Shikale, and four children – two daughters and two sons. Funeral arrangements are underway.
Labels: BUSINESS
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Nyirenda calls for govt support to boost business in E/Province
Written by Christopher Miti in Chipata
EASTERN Province Chamber of Commerce and Industry (EPCCI) chairperson Timothy Nyirenda has said businesses in the province still faces challenges which need government support.
And Commerce deputy minister Richard Taima said the government is committed to seeing that Zambia becomes the best destination for doing business.
During the Private Sector Reform Programme meeting in Chipata on Wednesday, Nyirenda said the processing of applications for the Citizen Economic Empowerment funds needed to be user friendly.
He said the amounts approved at provincial levels needed to be increased from the current K50 million which was the maximum that a province could receive.
Nyirenda said although the processing of papers at Patent and Companies Registration Office (PACRO) had improved, the other procedures after a business had been registered still took too long.
He also said the province only received one third of the electricity required, making it impossible for some industries to be established in the province or expand.
Nyirenda said most of the bad economic conditions affected the Small and Medium Enterprises (SMEs).
"For example, financial policies favours large corporation, interest rates are still too high. Some of the policies of large corporations do not encourage competition and affects small businesses especially here in the province for example Zambia Breweries, they have only one agent for soft drinks and one agent for beers in the whole Chipata district. This obviously requires small business operating far from the town centre travel distances to acquire their commodities," he said.
Nyirenda also said Lafarge Cement, until two weeks ago, had only one agent in Chipata.
And Taima said the government wanted to ensure that the private sector had an opportunity to do business, thereby adding value to the country.
He urged the business community in the province to initiate business ventures that the government would support.
Taima said the private sector in Eastern Province should take advantage of the neighbouring countries by doing meaningful business.
Labels: BUSINESS, CHIPATA, EPCCI, TIMOTHY NYIRENDA
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Tanzania legislation change affects business in Zambia
Written by Patson Chilemba
Sunday, September 06, 2009 6:57:26 PM
THE Dar-es-salaam Port logistics committee in Kapiri Mposhi has complained to Zambia's envoy in Tanzania to intervene in the matter where new legislation in Tanzania has affected the conduct of business in Zambia.
In a letter dated August 18, 2009, and jointly signed by the committee's chairman Chrispine Kasonde and secretary Darius Kapembwa, the committee stated that the Zambian communities had been facing difficulties in transporting transit goods from Dar-es-salaam to Kapiri Mposhi due to the change in legislation on the Tanzanian side. The committee stated that the current system required each and every importer transiting goods to hire a wagon or luggage van at a cost of US $3,100 and US $3,400.
"Those charges are beyond most importers who import petty consignments," the committee stated. "The transportation difficulties referred to above emanated from change of legislation by Tanzania Revenue Authority to bar importers from transporting transit goods from the port to TAZARA rail terminal using containerized trucks."
The committee stated that the change in legislation was as a result of concerns of revenue loss due to unscrupulous traders who purported to be transiting goods and yet they imported for the local market.
"It has come to our knowledge that this measure was intended to prevent loss of revenue on the part of TANZANIA REVENUE AUTHORITY (TRA). In the process of preventing loss of revenue, TANZANIA REVENUE AUTHORITY (TRA) introduced two measures. These are; (a) Loading and transportation of goods must be done at the port instead of taking goods to Tazara in containerized trucks," the committee stated. "(b) TAZARA management were instructed to set a bonded warehouse at their terminal to which goods shall be moved in bond and customs officers seconded to it for the purpose of managing it. TAZARA has already provided warehouse as instructed."
The committee stated that before the change of legislation, goods would be loaded in containerised trucks, which were sealed and taken to TAZARA terminal by customs officers, and all the transit documents would be prepared for each consignment.
"TAZARA and TANZANIA REVENUE AUTHORITY (TRA) officers would witness the offloading from trucks into TAZARA warehouse. TRA officers were not managing the warehouse and loading of cargo into luggage vans/wagons. Transportation charge was based on the actual weight the importer had," the committee stated.
The committee stated that now importers who hired wagons/vans had ended up incurring storage charges as they waited for other importers to consolidate goods in order to share the cost of hire.
The committee stated that it was therefore felt by the Zambian community that the TRA had not fulfilled its mandate of trade facilitation.
They stated that the new measures had resulted in sharp increase in the cost of transportation and other costs such as storage charges.
The committee stated that TRA had not seconded its staff to TAZARA bonded warehouse as per agreement, and that this was supposed to have been implemented by June 2009.
The committee stated that with the high unemployment and high cost of living in the country, citizens had diverted to conducting small businesses in the name of cross border trading in order to sustain themselves and their families.
"It is felt that the current system if continued will push a number of these small traders onto the streets. We therefore, appeal through your good office to request TRA immediately second officers to TAZARA bonded warehouse so as to re-introduce the old system of moving goods in containerized trucks from the port to TAZARA terminal (Bonded warehouse)," stated the committee.
The letter has also been copied to Zambia's communications and transport permanent secretary, Tanzania's ministry of infrastructure permanent secretary, TAZARA managing director, TRA commissioner, Tanzanian High Commissioner to Zambia and the regional generals managers for TAZARA.
Labels: BUSINESS, KAPIRI MPOSHI, TANZANIA
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ZRA begins SADC pilot project on transit bond system
By Kabanda Chulu
Wednesday October 22, 2008 [04:00]
THE Zambia Revenue Authority (ZRA) has started implementing a SADC pilot project on regional transit bond guarantee system that will reduce the cost of doing business. The regional transit guarantee system is a bond system that provides some form of security with regard to potential customs revenue on cargo that is transported from one point to the other.
According to a statement issued by the ZRA customs services division, the Southern Africa Development Community (SADC) would be running a pilot project for regional transit bond guarantee system in order to facilitate trade more efficiently.
It stated that the project would run on the south-north corridor, which includes South Africa, Zimbabwe, Zambia and DR Congo.
“The Regional Transit Bond Guarantee system aims at removing the multiplicity of bond requirements and will have one bond to run through all countries from point of commencement to point of discharge in order to reduce cost of in-bound logistics,” it stated.
“And for purposes of the pilot, a limited number of agents, guarantors and transporters have volunteered to be part of the project and further, the pilot will be restricted to certain commodities with all commodities presumed risky will not be admitted.”
It stated that there would be no interruption to business operations in the course of the pilot project and that current transit operations would continue for transactions excluded from the pilot project.
Other intended objectives of the regional transit bond guarantee system would be to facilitate trade since individual countries have a preserve to ask for security within their border jurisdiction. The regional approach is seen as one that will reduce the cost of doing business by avoiding the duplication of costly bond security in individual member countries.
It is also expected to provide recognition of one single bond across the region by all member states that were party to the agreement.
Labels: BONDS, BUSINESS, SADC, ZRA
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Govt probes business over empty shelves
Herald Reporter
GOVERNMENT is investigating the flooding of locally-produced basic commodities in neighbouring countries when shelves here are empty, President Mugabe has said. Addressing thousands of Zanu-PF supporters in Mutoko yesterday, Cde Mugabe castigated some businesses for pursuing the illegal regime change agenda.
"VaGono vaindiudza musi uno kuti takange tichida kutenga sugar kuNamibia. They (Namibians) said the sugar that we wanted to buy came from us (Zimbabwe). Tiri pakuongorora nyaya yacho. Tine vanhu varipakuputsa nyika yedu neHurumende nehumenemene," he said.
President Mugabe said the current wave of price hikes was not in response to corresponding increases in production costs as claimed by business. He said the Government would sit down with business and assist where necessary.
"Tichagara pasi navo kuti chii chiri kumbonetsa, kana iri foreign currency tokupai mitengo idzike."
President Mugabe warned that the Govern-ment would take over businesses that unilaterally increase prices to inflict pain on the people in order to cause a revolt.
He urged people not to lose heart because of the current economic difficulties.
"Tirivanhu vane nhoroondo. Haungati nekuti dambudziko randirwadzisa handichada musangano, handichada Chimurenga," he said.
President Mugabe said the fluke win by MDC-T in the March 29 harmonised elections did not mean that the opposition party’s support base had increased.
"Mavhoti eMDC tichicherechedza neemuna 2005 akadona ne100 000. Havana kuwana mavhoti matsva," he said.
President Mugabe said Zanu-PF did not trounce MDC-T in the March polls because thousands of its supporters did not vote and urged the supporters to come out in large numbers on June 27.
He called for unity in the party in order to defeat MDC-T and keep the Zanu-PF Government in power.
"Rambai makabatana tiri kutungamirirwa nemusangano weropa; ndiwo watinoda kuti urambe urimuHurumende. Ini ndakamirira musangano. Ndikahwina party yahwina, ndikaruza iparty yaruza. Hurumende haizobva kuparty yedu."
President Mugabe said MDC-T was a puppet of the West bent on reversing the gains of the liberation struggle.
"Tsvangirai akabvunzwa kuti ukahwina chii chauchazoita zvikanzi ndinongomononora zvese. He will reverse all the policies asi chikuru chiripo is the land policy," he said.
Cde Mugabe said whites trooped back into the country and threatened to reclaim their former farms following premature reports that Tsvangirai had won the March elections.
"Makaona zvakaitika? Varungu vakadhirika vakauya mumapurazi. Ndomafaro akange ava nevarungu iwayo."
The First Lady, Amai Grace Mugabe, pledged to buy trucks for farmers in Mutoko for the easy transportation of their produce to the market.
Retired General Solomon Mujuru, Mashonaland East Governor Cde Ray Kaukonde, Cde Elliot Manyika and other senior party officials attended the rally.
Labels: BUSINESS, INFLATION, MUGABE
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Retailers ripping off consumers
By Milford Chitubu in Cape Town, South Africa
A LOT has been written about the displeasure most Zimbabweans are quietly enduring at the hands of the country’s business community. What irks me the most is that the leadership in our corporate sector are lately the most vocal and seemingly the "know-it-all", yet they are themselves presiding over a sector that is seriously shortchanging the general public.
My outrage is not one without illustration.
Firstly, I was horrified to discover that some companies here in Zimbabwe are siphoning out of the country tonnes and tonnes of the basic commodities they are producing, while starving the domestic market.
What is worse, it is very likely that such "exports" are never accounted for in these companies’ formal books of accounts.
One only needs to cross into Botswana to see loads of beverages with a "made in Zimbabwe" logo.
One only needs to go to Namibia looking for sugar, only to be told that what some companies there are selling back to Zimbabwe is in fact sugar originally smuggled from Zimbabwe.
Being in the Information Technology and Communications business, I travel quite frequently in the region and again I was recently in Malawi, Zambia and Mozambique where I saw milk products typically coming out of Zimbabwe, yet the same are strangely scarce back home.
One can go on and on to include minerals such as gold, diamonds, platinum, chrome, emeralds and coal fines, among many others, that are leaving the country unaccounted for, in the process prejudicing the country of millions in foreign currency, as well as causing inflationary shortages on the domestic market.
Yes, to the one-sided thinkers and analysts, the preferred assessment is to blame Zimra, the Police or the Exchange Control arms of the Central Bank for having porous ports of exit or systems with loopholes.
Yet, it is an indisputable imperative that the business community itself has to also play an important and leading role in curbing the damaging leakages that are taking place in the economy.
To prove my point, another reference point is to look at Zimbabwe’s exports into our major trading partner, South Africa, as recorded by South Africa itself and compare with what our companies declare to the officials.
Given the passion burning inside me, and the need for our business sector to stop the one-way street blame game, I took time to analyse these statistics.
During the first quarter of 2008, published South African trade statistics (South African Revenue Services) indicate that merchandise exports into that country from Zimbabwe totalled at least 1,6 billion rand.
The story turns disappointing when one looks at the official records in the direction of trade diary showing declared exports to South Africa of only around US$110 million over the same period.
This is most likely a mere tip of the iceberg, and so what is our business sector doing about it?
Are they not playing a cat and mouse game, killing the economy?
The height of deceit and ravaging greediness by some of our captains of industry and their shareholders does also reflect in the ridiculous prices that are now characterising our economy.
Take for instance the discrepancy between the prices of basic commodities here in Zimbabwe against those obtaining just across our borders.
A small bottle of cooking oil (750ml) for instance, costs under 14 rand, but alas here in Zimbabwe it now costs around Z$15 billion.
Other examples to show how our business sector is letting the public down are the following disparate price comparatives: Flour, 10kg (ZAR70,5 against Z$60 billion); Green bar 1kg of soap, (ZAR 7 against Z$6 billion); 2kg of rice (ZAR 14,25 against Z$15 billion) and 500g washing powder (ZAR 10 against Z$12 billion), among many other outrageous overpricing patterns here in Zimbabwe.
Yes, I know some, particularly the skin-deep economists turned "experts" would be quick to say it is Zimbabwe’s high cost of production (inflation) explaining these ridiculous prices.
But the reality is very clear: Zimbabwe’s pricing systems have fallen victim to what strongly appears to be complicity by business to breed and sustain a veld-fire of unabated price increases that go beyond what production costs justify.
I did some quick computations of the indicative purchasing power parity exchange rate that takes into account the differential between domestic inflation and that in trading partners) and found the shocking reality that the exchange rate ought to be now only around Z$500 million to 1US$.
I challenge any economist to prove me wrong through factual computations!
What this means is that, for instance, the 750ml cooking oil bottle of around R14 should be trading around Z$700 million here in Zimbabwe, and not the ridiculous Z$15 billion plus prices that we are seeing.
Others at the helm of industry have recently been chanting "soon the Zimbabwean dollar would be worth nothing" and for sure we see them increasing prices hourly, even in foreign currency terms!
This is true, one only needs to get quotations even in US dollars from one company and move on to get the same from others or at the same company the next day.
The US dollar price variations and daily increases are staggering.
As patriotic Zimbabweans, we must choose the path of doing things for the common good, as opposed to selfish pursuit of profits or convoluted political agendas.
Our business sector should go back to the canons of entrepreneurship and realise that the heart and spirit of commercial enterprise ought to reside on prosperity that comes through rewards on actual production/service delivery, as opposed to overnight blossoming of profits through victimisation of consumers.
Lest I am accused of being also one sided, I want to end by saying that Zimbabwe’s inflation will be stabilised as a result of combined efforts across the board.
Fiscal and monetary authorities will need to play their part through balanced austerity, while our private sector also rolls up its sleeves to produce and sell their goods and services at fair prices that reflect the true costs of production plus normal profit margins.
Fellow Zimbabweans, it is not good for our nation, if our businesses make hefty profit margins while the vulnerable groups suffer.
Please, let me end by calling upon the authorities to invoke strategies that will shape the mind-frame of our private sector through the powers of supply and demand.
More precisely, the authorities should seriously consider flooding the market with cheaper, high-quality basic commodities from across our borders, so as to introduce the discipline that inevitably comes with competition.
It is in this context that we applaud the move by the Government to remove import duty on basic commodities.
This move should now be followed by radical injection of competition to wake up our industry into getting more responsible.
Shrill calls and outcries that importation of cheap basic goods will cause unemployment here at home must be resisted and ignored until our business sector shapes up.
The same need for reform also applies to our banking sector.
There are some banks which seem to be relishing themselves by perpetually driving up the exchange rate, effectively showing a degree of irresponsibility and abuse of the new flexible exchange rate policy of Government.
Unless and until we all work collectively and responsibly as patriotic Zimbabweans, our economic conditions will take long to put right.
We are a very rich country which cannot afford to be poor.
Labels: BUSINESS, ZIMBABWE
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It's unacceptable that big businesses are foreign owned, says Fundanga
By Chiwoyu Sinyangwe
Monday May 05, 2008 [04:00]
BANK of Zambia (BoZ) governor Dr Caleb Fundanga yesterday said it is unacceptable that the biggest business establishments in the country are foreign owned. Briefing the press over the Junior Achievement (JA) Zambia programme at Pamodzi Hotel yesterday, Dr Fundanga said there was need to instill the entrepreneurship mind in most Zambian people at an early age. He also said JA Zambia was this year targeting to capture about 500 young Zambians from different schools, universities and colleges in its activities.
"We need to inculcate a spirit of entrepreneurship at an early stage in the children so that they start understanding business and economic issues when they are still young," said Dr Fundanga who was speaking in his capacity as board chairman of the JA Zambia. "We should move away from the current situation where all the children are being trained to be workers.
We should start teaching them how to create wealth for themselves and contribute to economic growth of the country. Our children need to have a strong conviction at an early stage in their lives that Zambians have the potential to develop this country and not just waiting for foreign investors... Are you telling me that we have no local investors?
"At JA, that is what we want to do. To work with other stakeholders to ensure that whether it is engineering, banking or any other field, our young people realise at an early stage that they can make money for themselves and contribute to development of this country."
And Dr Fundanga called on Zambians to support each other to make money.
"Let us encourage each other to make money. I don't see anything wrong with supporting a fellow Zambian who is making money, so long that money is not through illicit activities," said Dr Fundanga.
And JA vice president for Africa region Lamech Mbise said the surest way to grow the economy of the continent and reduce criminal activities was to invest in young people through giving them good education. Earlier, Barclays Bank Zambia (BBZ) managing director Zafar Masud said although JA had achieved some of its objectives, a lot needed to be done.
Masud also said BBZ would continue to support activities of JA which he said was a reservoir of the bank's future customers and workers. The JA is a worldwide mentorship programme aimed at developing business and work skills among young people in primary, secondary and tertiary education.
The JA programme has been running in Zambia for the last four years and it is implemented in 117 countries.
Labels: BOZ, BUSINESS, CALEB FUNDANGA, ENTREPRENEURS, JUNIOR ACHIEVEMENT ZAMBIA
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It's business' business to fight corruption
By Editor
Friday April 11, 2008 [04:00]
There is a strong business case for having an anti-corruption strategy. And the initiative by the Zambia Business Forum to partner with the Anti-Corruption Commission in the fight against corruption is a recognition of business’ vulnerability to corruption and of the benefits of effective anti-corruption programmes and controls. Companies are losing real and significant business opportunities because of corruption risks.
There are many companies that have not entered a specific market or business line or pursued a particular opportunity because of corruption. Therefore, a better understanding of corruption will help them compete more effectively, make better decisions, improve corporate social responsibility and enter new markets and business lines.
It would not be wise for business to sit ndwii hoping things will improve by themselves when they are losing bids everyday because of corruption. A level playing field is crucial to their company’s future business activities. And that level playing field will not come by itself, it has to be struggled for and it is their duty to struggle for it.
There is need for the business community to join hands with other forces in the nation and make corruption too expensive for those who risk to undertake it. The risk to reputation or brand damage from corruption must be raised and made crippling.
Having an anti-corruption programme in place and publicising it should be seen as valuable or very valuable to a company’s brand. There must be severe impact on corporate reputation for those who involve themselves in corrupt activities.
What worries us is that despite being aware of corruption, many companies’ underlying policies and controls currently do little to identify and deal with this problem. It is therefore very pleasing to learn that the Zambia Business Forum is partnering with the Anti-Corruption Commission to promote ethical dealings in both business and government and help create a corruption-free Zambia.
We welcome the Zambia Business Forum initiative because while there appears to be a firm commitment to tackling corruption, companies need to do more to protect themselves from this scourge. There is a gap between corruption risks and companies’ anti-corruption initiatives as well as efforts to remedy it.
Business is more keenly aware than ever of the dangers of corruption. Yet, companies still need to expand the scope and rigour of their efforts to manage corruption risks with well-designed controls that are clearly communicated and enforced.
By looking at the frequency of various types of bribes, the yearly share of revenues paid in bribes, and the views of business regarding the extent to which corruption impairs its performance, we can begin to discern what is holding back investment that could spur higher growth.
Clearly, corruption – whether measured by the frequency of bribes, or the extent to which corruption is an obstacle to business – is a challenge that we all need to collectively confront as a nation.
And there is no doubt that better policies, institutions and alliances can help reduce corruption over the medium-term.
There is need for us as a nation to continue to undertake policy and institutional reforms that are targeted at significantly changing the rules of the game. But better policies are not the only determining factor. Everything possible should be done to improve the business environment.
As we try to undertake these policy and institutional reforms, we shouldn’t also forget that corruption comes in many forms; one of the most pernicious of which is state capture.
State capture involves bribes paid to influence the content of laws and regulations, that is, the fundamental rules of the game, rather than simply their implementation in individual instances.
And we shouldn’t lose sight of the fact that state capture can change from being a strategy of political influence practiced by a small share of firms to a more widespread practice.
And increased competition among captor firms may actually be making its impact on the business community more diffuse.A lot of things about our attitudes towards corruption also need to change.
Notwithstanding the clear condemnation of corruption, the exposure of corrupt acts is clearly not rooted within our enterprises. We so often encounter corrupt practices and do nothing about them.
This has to change. There are risks in fighting corruption and we should all share those risks. This fight cannot be left to a few individuals, companies or institutions. It requires the participation of every individual, company and institution.
The phenomenon of corruption has negative effects on the country’s economic life in so far as creating a business environment characterised by uncertainty, may be a strong disincentive for investment, both local and foreign. On the other hand, its impact is differentiated in terms of direct costs to enterprise and households.
Corruption is certainly, or evidently, one of the obstacles that must be taken into consideration when formulating any kind of poverty reduction policy in this country.
It is for these reasons that we highly welcome the move by the Zambia Business Forum to take corruption seriously by embarking on concrete measures to combat it. Corruption is a cancer that should be fought with all the tenacity we can marshal.
If we don’t make progress in fighting corruption, we will not make much progress in the efforts to grow our businesses and in the general development of our country.
There is truly a strong business case for business to join in the fight against corruption. It’s business’ business to fight corruption.
Labels: BUSINESS, CORRUPTION
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