Issue 7 november 2013


Published on

Business Star

Published in: Business, News & Politics
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Issue 7 november 2013

  1. 1. CALENDER OF EVENTS Zimbabwe to host inaugural African Marketing Summit in 2014 The body comprises a membership of partners in six countries including South Africa, Nigeria, Zambia, Kenya, Ghana and Zimbabwe. AMC secretary-general Gillian Rusike said the hosting of the summit would promote the local marketing industry and the country as a destination. “Our vision is ambitious and it completely challenges the way in which Africa has been thought of before. We want to provoke Africans marketing professionals to champion the development of Africa through home grown solutions as we better understand our continent than outsiders,” he said. He added that hosting of the event in Zimbabwe posed a greater challenge for local professionals to prove that they were a cut above the rest in Africa and beyond. Rusike said besides being able to bring visitors to the country, hosting of such events in the country would facilitate the image building of the nation hence also contributing to national development at large. Zimbabwe has won another opportunity to host a high-profile event that is set to bring in more recognition to the country as marketers will host the inaugural African Marketing Summit in the country next year. The summit which comes hard on the heels of the successful co-hosting of the UNWTO General Assembly in Victoria Falls, will run under the theme “Making Africa a Better Business Giant through Marketing” from March 26-28. The African Marketing Confederation, the host, is a pan-African body of marketing professionals aiming to spearhead the development of the highest possible marketing standards across Africa. It recognises that the continent’s unique and varying cultures, languages, standards of education and levels of development require home-grown marketing approaches designed and nurtured by Africans themselves. Hundreds of delegates from emerging and developed markets are expected to participate, including CEOs, academics, marketing practitioners, government officials, entrepreneurs and world-renowned thinkers, among others from around the world who share a common interest in sustainable development through business as a whole, and through marketing in particular. The event will also feature leading multinational companies, African marketing institutions, universities, Chambers of Commerce and other bodies.
  2. 2. COMPANY NEWS Ziscosteel; will the sleeping giant finally awake? Minister of Industry and Commerce, Mike Bimha says the re-opening of redundant New Zim Steel, formerly, Ziscosteel, is one of his top priorities following his appointment in mid-September. The giant Redcliff company, was rechristened New Zim Steel after government signed a US$750 million takeover deal with India’s Essar Africa Holdings (Essar). Essar now effectively owns 54 percent of the derelict steel producer, whose re-opening since closure over five years ago, has been a matter of false starts in the past two years. The deal between Essar and government was penned in 2011, during the lifespan of the coalition government, with Professor Welshman Ncube, the then Industry and Commerce Minister having taken a lead role in facilitating the takeover. But operationalization of the deal took what many analysts describe as a political turn, despite cabinet and President Robert Mugabe having officiated at the event when pen was to put to paper between government and Essar on transfer of shareholding. Allocation of mineral claims, which had presumably been handed over to Essar when it acquired the stake became the major issue, stalling the operationalization of the deal. between Essar and Zisco management,” the new industry minister said. “A lot of progress has been made and the coming in of a new government will ensure that Ncube, a Movement for there is speed in terms of the Democratic Change minister execution (of the deal).” failed to convince his then Mines counterpart, Obert Mpofu from Bimha also believes that the fact Zanu PF, to hand over the claims that the new cabinet is entirely as presumably agreed with Essar. made up of members of the ruling party, Zanu PF, other than The Mines and Mining coalition, will ensure that there Development ministry, it is smooth facilitation in ensuring appeared seemed to argue that that the obstacles standing in Ncube had sold off Ziscosteel the way of operationalizing the and the claims the company deal are addressed. owned for a song and wanted Essar to separately pay for the “The mere fact of having an entire cabinet from Zanu PF revalued mineral resource. will ensure that communication Disagreements on this matter, is faster and accessibility is have to date stalled the much guaranteed and I am sure that awaited re-opening of New Zim we all have that a common Steel. agenda to ensure that what we promised the electorate is General elections, finally held realised,” he said. on July 31 and disputably won by Zanu PF, also further delayed Walter Chidhakwa now heads finalisation of the matter as the mines ministry. politicians, who have the final say on the deal, hit the campaign To ensure smooth facilitation of the deal, the Office of the trail. President and Cabinet is now But Bimha, once Ncube’s deputy chairing a committee, comprised and has taken over the reigns officials from the ministries of told the Business Star, progress mines and industry as well as in ensuring the matter is finalised from Essar. will now be fast tracked now that President Mugabe has set The delay in ensuring New Zim Steel comes back to life has not up a new government. been without consequences for “With the coming of a new the country as an investment government, we will ensure that hungry destination, the steel progress is accelerated. There industry as well as the workers have been a lot of meeting and their families.
  3. 3. The New Zim Steel deal is arguably one of the “Since 2010, no one has talked or shown concern biggest investment deals that Zimbabwe managed about the lives of the workers,” says Ziscosteel to clinch at a time when the international investor artisan’s union chairperson Obert Shokombisi. community largely shunned the country. “There has been great talk about the deal and Government’s continued insistence on localisation mining rights but nothing about the human laws which force foreigners to cede at least resources. 51 percent shareholding to locals made the And without funding to bank on, New Zim Steel investment climate unattractive. has struggled not only to pay the workers but also Economists however say that government’s owes other stakeholders including utilities over bungling of the New Zim Steel did not do the $120 million. economy any good in the eyes of potential Industrialists say finalization of the deal therefore investors. remains critical not only of the workers and the “For such a big investment of close to a billion town of Redcliff in particular which has been dollars, government was supposed to handle this turned into a ghost town, but the economy as a deal with great care,” said one economist. whole. “Taking years to finalise the deal when you are trying to attract other investors to invest in the country will just not work.” The Engineering, Iron and Steel Association says delays in re-opening the firm had seen the steel industry struggling to boost its capacity which is hovering below 20 percent, with 15 companies in the sector having been placed under liquidation. Workers have also borne the brunt of the government’s ineffective handling the deal. At signing of the deal, Essar had committed to retaining the 3 500 workers who were employed by Ziscosteel. Further investments would have seen the company employing 3 500 workers. The company would also have paid the salaries debt, which employees were owed by Ziscosteel. Bimha says discussions on assisting the workers with among others school fees for their children have been going on in the background. But the workers, who have been made redundant for too long, say their livelihood has turned into a nightmare due to failure to re-open the company. The workers, who have not been paid for months and are owed in excess of $15 million are struggling to make ends meet at a time when the cost of living is on an increase. New Zim Steel has the potential not only to earn the economy the much needed foreign currency through exports but to also serve as local companies will no longer need to import steel.
  4. 4. 4.2 Overview of Economic Performance in Zimbabwe Economic Growth The economic growth rate for Zimbabwe is estimated Statistics Highlights to reach 5% by the year end, on the backdrop of expected 4.1 Global Tourism Overview positive performance in the According to the latest figures mining and agricultural sectors. availed by the UNWTO for This estimated growth is a 0.6 the first four months of the percentage point increase from year (January to April 2013), the annual economic growth international tourist arrivals of 4.4% in 2012. Tourism is a went up by 4% compared to the sensitive sector which thrives same period in 2012. This was well when the economy is an increase from 287 million growing. A growing economy has to 298 million which reflects a a positive impact on disposable generally robust tourism sector, income among locals which is a despite the on-going economic positive stimulant for domestic challenges in some parts of the tourism. world. Inflation As of June 2013, the The UNWTO reports positive country’s year-on-year inflation, growth in all regions, with the as measured by the Consumer strongest growth in Asia and the Price Index (CPI), increased Pacific (6.3%), Europe (4.9%) the marginally by 1.87%, according Middle East (4.7%), and weaker to figures released by the growth in the Americas (0.5%) Zimbabwe National Statistics and Africa (1.8%). Agency (ZimStat). The annual By sub-region, South-East Asia inflation is projected to reach (12%) and Central and Eastern 2.9% by December 2013. This Europe (9%) continued to be low rate of inflation is conducive the star performers while in for economic growth since Africa, the sub-Sahara region experts point out that inflation registered a 3% increase against should be maintained between a 0.1% decline for North Africa. 1% and 5% per annum for 2013 First Half Tourism optimal economic growth. However, a ripple effect may still be felt in the economy, due to the 5cent per litre increase on excise duty on petrol and diesel for the period March to December 2013. Interest Rates As a result of the prevailing liquidity constraints attributable to limited foreign direct investments as well as a perennial trade deficit, credit remains very expensive in the country with financial institutions charging, on average, annual interest rates of 10% for corporates and 14, 5% for individuals. The country badly needs to revamp its tired product by carrying out refurbishment of existing tourism facilities and investing in new facilities. However, these high interest rates continue to inhibit access to finance, thus restricting development of the tourism sector. 4.3 Tourist Arrivals into Zimbabwe - First Quarter 2013 Preliminary results of tourist arrivals into the world’s regions for the first Half of 2013 show Africa, Europe and
  5. 5. Asia recording growth while Oceania, the Americas and the Middle East declined. Zimbabwe recorded a 12% increase in tourist arrivals in the first half of 2013, standing at 859 995 as compared to 767 393 during the same period in 2012 (see Annexure A). This growth is clearly testimony of the country’s improved destination image. transiting tourists, mostly drawn from DRC, Tanzania, Malawi, Mozambique and Zambia. The second quarter of 2013 marked the build up to the harmonized elections. Tourist arrivals usually tend to decline towards, during and after an election. Surprisingly, the elections had little effect on tourist arrivals with a few exceptions such as Botswana, Argentina, USA, Singapore, Germany, Italy and Israel The ever increasing regional trade and whose arrivals rose in the first quarter, but, commerce also contributed immensely to this suddenly declined in the second quarter. growth in arrivals, through the activities of business tourists, cross border traders and
  6. 6. The market share for the overseas arrivals into Zimbabwe stood at 13% (compared to the market share for African arrivals, at 87%). This share went up 1 percentage point this year from 12% in 2012. The combined arrivals from all overseas markets rose by 20% this year compared to last year, on the backdrop of exceptional increases from Europe (26%) and Asia (60%) with UK, France and China specifically registering outstanding performances. Zimbabwe. In Asia, China is rapidly becoming the major engine driving global tourism, (having generated 83 million trips to all parts of the world in 2012) and continues to grow. Arrivals from China grew by about three times as much in 2013 as in 2012, yielding a whopping 310% growth. Europe recorded a 26% growth in arrivals with United Kingdom (72%) and France (76%) being the star performers from this region. However, the major markets of Germany and Italy registered decline, without which they Mainland Africa had an 11% increase in could have otherwise fueled further growth of arrivals having risen from 675 727 in 2012 European arrivals to Zimbabwe. to 749 301, with South Africa, Mozambique and Zambia contributing over 70% of all The Middle East declined by 7%, with the arrivals from this region. major market of with Israel tumbling by 9% during the period under review. The Americas declined by 3%, having fallen from 24 462 in 2012 to 23 764 on the Oceania grew by 8% buoyed by Australia background of a 6% decline in USA arrivals. which is the only market with positive results from this region, whilst New Zealand recorded Asia exhibited a sterling performance having a 37% decline. recorded a 60% growth in arrivals into
  7. 7. 4.4 Hotel Occupancy of 2013 as compared to 2012 resumption of Air Zimbabwe whose whole length had flights between Victoria Falls Statistics In the first half of this year, average hotel room occupancy levels rose by 2 percentage points to stand at 41%, from 39% in 2012. On the other hand the average hotel bed occupancy levels, contracted by 5 percentage points from 37% in 2012 to 32% this year. Hotel Room Occupancies: 1st Half 2013 / 1st Half 2012 Harare and Masvingo recorded significant decline in occupancies and research has shown that this was largely due to reduced conferencing activities during the first half constitution making activities which had spilled over from 2011. Notable increases were recorded in Victoria Falls and Midlands along with Hwange, Nyanga and Bulawayo which had modest increases. Increases in Victoria Falls during the first half of the year, were to a certain caused by the clients rescheduling their intended bookings to earlier in the year, so as to avoid the “hustle and bustle” connected with UNWTO General Assembly in the second half of the year. It is also worth noting that the improvement in connectivity resulting from the and Harare/Johannesburg is another major factor leading to the improved performance of the resort during the first half of the year. Midlands has been very suppressed for a long time, however as a result of hosting increasing conferences and the increasing popularity of the Midlands Agricultural Show, occupancies have seen an increase in that region. One of the factors that gives the region favourable occupancy percentages is the general lack of capacity as the region only has 314 rooms causing little actual increase to seem huge percentage wise.
  8. 8. Harare and Masvingo recorded significant decline in occupancies and research has shown that this was largely due to reduced conferencing activities during the first half of 2013 as compared to 2012 whose whole length had constitution making activities which had spilled over from 2011. Notable increases were recorded in Victoria Falls and Midlands along with Hwange, Nyanga and Bulawayo which had modest increases. Increases in Victoria Falls during the first half of the year, were to a certain caused by the clients rescheduling their intended bookings to earlier in the year, so as to avoid the “hustle and bustle” connected with UNWTO General Assembly in the second half of the year. It is also worth noting that the improvement in connectivity resulting from the resumption of Air Zimbabwe flights between Victoria Falls and Harare/Johannesburg is another major factor leading to the improved performance of the resort during the first half of the year. Midlands has been very suppressed for a long time, however as a result of hosting increasing conferences and the increasing popularity of the Midlands Agricultural Show, occupancies have seen an increase in that region. One of the factors that gives the region favourable occupancy percentages is the general lack of capacity as the region only has 314 rooms causing little actual increase percentage wise.
  9. 9. The national average hotel bed occupancy level fell by 5 percentage points (despite having increased in room occupancy levels) with the greatest decline being registered by Masvingo (-28 percentage points) . According to tourism operators in this region, this is largely due to decreased conferencing activities during the period. Victoria Falls experienced the highest growth in bed occupancies (+23 percentage points) and a significant growth in room occupancies (+21 percentage points) and Bulawayo experienced a marginal decline in bed occupancies (-2 percentage points) while at the same time recording an increase in room occupancies (+3 percentage points), signaling a possible increase in business rather than leisure clientele in these areas. 4.5 Tourism Prospects for 2013 UNWTO forecasts continued growth in international tourism in 2013 although at a rather slower rate than previously envisaged. Arrivals are expected to increase by 3% - 4% according to long term projections by the international board. With the rejuvenation of the country’s major markets, arrivals into Zimbabwe are expected to ride on this positive trend throughout the year. This is so especially considering the current performance of markets like China, United Kingdom, Japan, South Korea and France. Positive trends in 2013 are also expected to hinge on the improved accessibility into the country, a stable post election environment and the probable interim aftereffects of hosting UNWTO General Assembly.
  10. 10. Africa provides highest growth opportunities for broadband Mobile broadband is the fastest growing technology in human history, according to the 2013 edition of the ITU’s State of Broadband Report which was released on 21 September. Released in New York at the 8th meeting of the Broadband Commission for Digital Development, the report reveals that mobile broadband subscriptions, which allow users to access the web via smartphones, tablets and WiFi-connected laptops, are growing at a rate of 30% per year. By the end of 2013 there will be more than three times as many mobile broadband connections as there are conventional fixed broadband subscriptions, read the acc ompanying press release. The State of Broadband is a unique global snapshot of broadband network access and affordability, with country-by country data measuring broadband access against the four key targets set by the 60 members of the Broadband Commission in 2011. The Republic of Korea continues to have the world’s highest household broadband penetration at over 97%. Switzerland leads the world in fixed broadband subscriptions per capita, at over 40%. By comparison, the US ranks 24th in terms of household broadband penetration, and 20th in the world for fixed broadband subscriptions per capita, just behind Finland and ahead of Japan. In terms of internet use, there are now more than 70 countries where over 50% of the population is online. The top ten countries for internet use are all located in Europe, with the exception of New Zealand (8th) and Qatar (10th). Significantly, notes the report, by the end of 2013, the number of broadband subscriptions in the developing world will exceed the number of broadband subscriptions in the developed world for the first time, in both fixed and mobile, respectively. Much of this fresh growth is located in emerging markets - Budde Communications (2013) notes that Africa is the region with the largest remaining growth potential in the world, and estimates that the market in telecom services will grow by 1.5 billion people, almost half the remaining market worldwide, by 2050. We thus expect the continent to continue to see increased investment in the ICT sector, as companies look to exploit the obvious opportunities. - imara
  11. 11. Africa’s technology and business leaders have in their hands an unprecedented opportunity to surpass their global counterparts. If we can harness the vast and growing sources of information known as “Big Data”, members of the C-suite – particularly Chief Marketing Officers (CMOs) and Chief Information Officers (CIOs), who increasingly share the responsibility for growth and innovation – stand to not only significantly boost our organisations’ bottom lines, but catapult our brands into positions of global leadership and best practice. But to do so requires uniquely African approaches to the selection and use of Big Data which align with our continent’s fast-evolving socio-economic and technological landscape. The currency of data What is Big Data? The Internet and computing technologies have, particularly in the past decade, resulted in exponential growth in digital information which exists in the world – in fact, more than 90 per cent of data currently in existence was created in the past two years. We call this abundance of information “Big Data”, and it has seismic implications for consumers, technologists, and business leaders alike. technologies to manage and analyse Big Data is typically a prolonged and technically intensive task. By incorporating Analysis of Big Data can identify Big Data at the very foundation trends, weaknesses, and of their investment in opportunities which would be technology and strategy, African otherwise invisible to human CMOs and CIOs have the chance observation – as long as the to get ahead of their global right tools and strategies are in counterparts in their ability to place to convert these stockpiles make smarter, faster decisions. of information into meaningful insights. Redefining best-practice Many commentators are calling data the “next commodity”: like natural resources traditionally, those who can access and refine it will have increasingly clear advantages and growth potential over those who don’t. For it to be effective, Africa needs to approach Big Data differently to the rest of the world. This is because Africa’s technological and infrastructural environments continue to diverge from those of other continents. CMOs and CIOs will need to work together to turn Big Data’s potential into tangible insights and improvements. Alliances between marketers and IT staff are already becoming more frequent, and for good reason. Mobile devices, for example, are the primary, often sole means of Internet access for a burgeoning percentage of the population. They both count innovation as a major part of their portfolios; they share common goals around improving quality of services; and their efforts are held responsible for core organisational growth – or decline. Big Data has relevance to all these areas and the complementary skills of the CMO and CIO are essential to its effective use. Organisations the world over are taking steps to build Big Data into how they make decisions, invest, and even safeguard the future of entire populations. But retrofitting existing That has already had significant impact on the evolution of e-commerce in Africa, where mobile-centric online marketplaces and peer-topeer networks are seeing rapid success and growth – not the big e-tailing shops that dominate online trades in the United States or Europe. That, in turn, will define the nature of Big Data in Africa, from the source (predominantly mobile devices and transactions) to what it is used for (building new marketplace platforms, or identifying gaps in current mobile payment channels). Tapping mobile growth African CMOs and CIOs have the
  12. 12. distinct advantage of the many entrepreneurs from the burgeoning IT ecosystem of start-ups. These businesses are developing innovative means of tapping this growing mobilebased business landscape. By adopting home-grown innovations from micropayments, to retail supply chains and banking for the unbanked and using these to expand locally and globally, smart African CMOs and CIOs who work together will be able to more efficiently and effectively target consumers and deliver beyond their expectations. algorithms and mobile phone data, allowing the base platform to deliver equal – if not better –results. By taking advantage of these opportunities, rather than approaching them as roadblocks, businesses can turn Big Data to its most powerful applications. A smarter marketplace These applications hold great promise for how CMOs and CIOs create more efficient marketplaces and seamless transactions. Many of Africa’s most promising start-ups are turning global notions of e-commerce on their That is not to say African business head, often through the canny leaders cannot learn from their use of mobile devices to form overseas counterparts when it networks where buyers, sellers, comes to Big Data. and advice-givers can share both opportunities and information Take, for example, Nairobi’s latest in a more fluid, physically efforts to reduce congestion unconstrained manner. and augment public transport services using Big Data and The same approaches analytics. IBM’s approach will hold promise for much collect and analyse data from the larger companies and even Kenyan capital’s transport grid governments. For example, to predict and identify delays, creating more resilient networks automatically reroute transport for sharing public-service to optimal pathways, and notify information is in practice not so commuters via live SMS and different from developing online mobile app updates – all based marketplaces for trading goods. on a similar approach developed by IBM for Singapore’s transport Big Data and analytics have the potential to enrich these network. networks with insight – into However, Kenya’s infrastructure wherever inefficiencies and lacks the coverage of sensors market failures are occurring, and monitoring infrastructure and how to potentially fix these. which the Singaporean system Combined, they can match buyers relies on for success. and sellers more efficiently, or IBM adapted the Singapore allow marketers to deliver more solution by drawing on accurate recommendations for future purchases. Predicting behaviours They can enable marketers to predict consumer behaviors and deliver messages with more timeliness and resonance than otherwise possible – with potentially life-saving results if applied to public-service announcements in industries like government and healthcare. Only by joining their expertise in behavior and technology can CMOs and CIOs use Big Data to power growth and innovation in their organisations. And only with approaches that leverage the nuances of our cities and cultures, rather than simply adhering to a “one-sizefits-all” global model, can Africa’s businesses and governments excel at Big Data – so much so that the rest of the world may soon turn to them for guidance. For that to happen, though, Africa’s top leaders need to put Big Data on their agenda as a key opportunity. Written by Kidane Z. Haile, IBM Software Group Director of Information Management Labs, Africa
  13. 13. BAT among top fiscus contributors in Zim Listed cigarette-maker British American Tobacco Zimbabwe Holdings Limited (BAT Zimbabwe) has been ranked among the top contributors to the fiscus by the Zimbabwe Revenue Authority (Zimra). The group - which in 2012 contributed over $28,6 million in excise duty, value added tax, and other tax payments to the fiscus - was ranked third in the Large Clients Office VAT payments category. Zimra recently hosted the second edition of its annual Taxpayer Appreciation Day, created to recognise the best taxpayers and the significant role that tax revenue plays in Zimbabwe’s economy. In 2011, BAT Zimbabwe was also awarded by Zimra after coming second in the excise duty category. Lovemore Manatsa, BAT Zimbabwe’s managing director, said the latest award “recognises the company’s contribution and commitment to the Zimbabwean economy.” “BAT Zimbabwe supports fiscal policies that stimulate growth of the industry, encourage fair competition, investment and entrepreneurial activity,” he said. Manatsa said the sale of BAT Zimbabwe’s products provides a key source of business for small to medium enterprises and thousands of formal, as well as informal traders around the country, generating excise revenue that is channelled to the fiscus. “BAT Zimbabwe will continue to invest and participate in the economy of Zimbabwe through empowerment initiatives such as these which we believe are important to the continued growth of our business and the economy as a whole,” he added. – Staff Writer.
  14. 14. COVER STORY Mark Tunmer Imara CEO to head Global Alliance Partners
  15. 15.     facilitated transactions in 57 countries worth nearly $32 billion describing it as an honour. He said the election showed the rising importance of Africa on the global economic and financial scene. “It is also a strong signal that Africa features high on the agenda of leading players active in areas such as mergers and acquisitions, private equity transactions, corporate fund raising and asset management,” Tunmer said. on the setting up of stock exchanges in Botswana, Malawi and Swaziland and that his experience would help him in his duties leading the huge network “All partners are fully licensed and together have completed over 1,100 corporate transactions in 57 countries. GAP manages or advises in excess of $6,5 billion in individual and institutional funds,” Imara said. The chief executive officer of GAP is involved in all levels of African investment banking the world economy. group Imara, Mark Tunmer will head the Global Alliance He said that it was heartening “Its key role is to bridge the between investment Partners (GAP), an international that GAP with its vast reach gap in leading, network of financial service was giving increasing attention opportunities companies following his election to opportunities in Africa. emerging and frontier markets, Tunmer said the election was and key sources of investment as chairman. According to Imara, GAP is “a an important opportunity to risk capital,” Imara explained. Hong Kong-registered network market Africa to the world. In its annual report for 2013 Imara said that the African of international, mid-market financial services companies “During my tenure as GAP continent remained a favourable dedicated to providing its chairman I will do everything investment destination. client base with local service I can to showcase new growth “The Board continues to hold the across our view that African capital markets and expertise coupled with opportunities international reach and access continent. Immense potential remain attractive to investors, in private equity, corporate fund is evident. It’s vital that Africa offering upside potential for the raising, stock brokering and fund capitalises on it,” he said. Group,” Imara said. The group said its concern was management”. Tunmer is also the group’s head on the volatility of world markets Imara explained that GAP was dedicated to fostering worldwide of securities and country head and their potential to impact negatively on future results. investment and business growth. for Malawi. “He has more than 25 years Imara said Zimbabwe was an Registered in Botswana of African stockbroking and important centre for its business Imara provides investment advisory experience and has and added that it was too early banking, asset management been instrumental in raising to gauge the effects of the reand stockbroking services more than $450 million in election of President Robert across sub-Saharan Africa. capital markets across sub- Mugabe and Zanu (PF). Saharan Africa through listings, “It is still too early to assess what Harare-based Tunmer accepted privatisation and rights issues,” impact future economic and investment policies in Zimbabwe his election as chairman of the Imara said in a statement. alliance which has collectively The firm said that Tunmer had may have on the Imara Group. in the past acted as an advisor Short term fluctuations do not
  16. 16. overly concern the Board which continues to see positive opportunities for Imara’s business in Zimbabwe over the medium to long term,” Imara said. For the financial year ended April 30 2013 Imara pointed out that the performance of the group was generally disappointing despite some highlights. second half against a continuing slowdown in China and the Eurozone problems although on the positive side there are signs of a turnaround in the United States of America,” Imara said. Imara said it anticipated that the continued growth in interest in Africa would contribute to greater inflows, which should in turn return the group to profit in the year ahead. “Market conditions remained difficult although  The group recently said the re-election of President there was an increase in liquidity, while most Mugabe had led to a sell-off on the stock market markets registered positive gains. The performance but at the same time created a value opportunity of the African markets excluding South Africa, was for others. This created a record month for trading better with eleven closing the year under review volumes. in positive territory in US$ terms,” Imara said. The group recorded a mixed bag of results on the These volumes in the aftermath of the elections continent. were driven almost exclusively by foreigners who “Of the larger markets Nigeria was up 49 percent, according to Imara were aware of the volatility of Kenya 34 percent and Zimbabwe 47 percent Zimbabwean politics. while Egypt was down 8 percent and Morocco 12 Equity markets in sub-Saharan Africa have reached percent. healthy levels and Zimbabwe due to the problems it has suffered has some catching up to do, so there “As usual the Group performed better in the is long-term growth potential, Imara explained.
  17. 17. Telecel scoops various excellence awards Telecel Zimbabwe was last week, for the second year running, presented with the Best Call Centre Award at the Contact Centre Association of Zimbabwe (CCAZ) Customer Service Excellence awards ceremony. Year Award is given to a company whose product or service is a totally new idea in Zimbabwe. The new product is supposed to have market dominance over other new products launched during the same period and demonstrate overall marketing excellence and innovation. Telecel Red was introduced early Multichoice was the first runner- this year. It is the first product of up for the award, while NetOne its kind in Zimbabwe. It is a new pricing concept that commits was second runner-up. the customer to payment of Telecel was also named first a fixed monthly subscription runner-up for the Overall Most that enables him/her to make Customer Focused Organisation local calls, access local data and in the telecommunications send local text messages worth sector, while Telecel Zimbabwe up to five times the cost of the customer operations director subscription. Zodwa Chinyenze was named first runner-up for the Most The product comes with three Customer Focused Executive of plans that subscribers can the Year in the Private Sector choose from which are Telecel Red 30, Telecel Red 60 and Award. Telecel Red 150. The previous day Telecel Zimbabwe had scooped two Telecel Red 30 includes unlimited awards at the Marketers calls to a frequently used Telecel Association of Zimbabwe number. Telecel Red 60 includes Exceptional Marketing Awards, unlimited calls to any Telecel where the company won the number. Telecel Red 150 allows Exceptional Product of the unlimited calls to any local phone Year Award for its Telecel Red network, as well as unlimited product, while its marketing local text calls and data. director, Octivious Kahiya, was Each of the three plans come named Marketer of the Year. with two contract options. There The Marketers Association of Zimbabwe awards are held every year to celebrate marketing excellence. They are meant to recognise marketing programmes and the people behind them that display innovation and creativity and are key for change. is a post-paid option which allows for usage outside of the package provisions, such as for international usage and where the plan’s local usage limit has been reached, on credit up to a set limit with the additional cost billed at the end of the billing period. The Exceptional Product of the The flexible option combines the advantages of a contract with those of recharging airtime using scratch cards. It allows customers to use a scratch recharge card for usage outside of the package, such as international usage and usage once the cost of local calls, text messages and data has reached the monthly limit. Mr Kahiya said Telecel’s winning of the Exceptional Product of the Year Award demonstrated the company’s efforts to bring value to the market and to its subscribers. Mrs Chinyenze, who heads Telecel’s customer service department, said Telecel’s customer focus was key to its winning of both the marketing and customer care awards. Commenting on her own award as first runner-up for the Most Customer Focused Executive of the Year in the Private Sector Award, Mrs Chinyenze said she had a passion for customer service excellence. “I have a passion for service excellence and have tried to mobilise the company and emphasise the importance of customer service. I believe it should be the strategic focus of Telecel,” Mrs Chinyenze said. She said, given the high priority Telecel gives customer service, it had come as no surprise to hear
  18. 18. that she and the company had been nominated for customer service awards. “I believe we have done well as an organisation. Personally I have invested considerable time and commitment to ensure that Telecel is known for the best customer experience,” she said. The Telecel Call Centre is easily accessible to customers and is staffed by customer service agents who have been trained to deal with customer calls and respond effectively to customers’ queries. The CCAZ Best Call Centre award is awarded to the company that would have made the best use of technologies as a core strategy of their commitment to elevate the overall system efficiency, resources management and customer service quality. In addition connectivity and harmonisation of these technologies is also taken into consideration. Issued on behalf of Telecel Zimbabwe by MHPR Public Relations Consultants, 59 Van Praagh Avenue, Milton Park, Harare.Tel 251538-40. E-mail Contact Person: Chengetai Chinembiri
  19. 19. BANKING and FINANCE The Business Star’s Tarisai Jangara caught up with Emmanuel Mugadza, an economic analyst and Head - Market Risk|MBCA Bank who shared his views on the economic and banking sector outlook. T.J Where the economy is likely to go at any point in time is a crucial input into most important decisions an enterprise makes. Inflation or deflation? If you could somehow fast forward to 2015, what is the likely scenario? E.M With continued use of a stable US dollar in the economy, inflation levels are expected to remain containable - within manageable levels of ~3% with a negative trend for the next ensuing years, however muting a local currency prematurely is likely to see the return of a hyperinflation . Since 2010, annual inflation levels have averaged about 3.5%, which falls far below regional parity averages. Consumer goods inflation has remained fairly modest, however corporate bodies have had to feel the brunt of a “retail economy” which has seen the trade deficit widen. Whilst a weakening rand has reduced some import costs, fierce competition between retailers has forced margins to their lowest levels at such a time where production costs have been growing at a steeper gradient compared to revenues. Generally deflation has been characterizing the market due to suppressed demand on the back of liquidity constraints. central bank uses them as the primary means of implementing monetary policy. The usual aim of open market operations is to manipulate the short term interest rate and the supply of base money in an economy, and thus indirectly control the total money supply, in effect expanding money or contracting As the economy continues to the money supply. This involves improve, inflation is anticipated meeting the demand of base to kick in. With economic growth money at the target interest rate prospects converging towards by buying and selling government points of stagnation, impetus securities, or other financial to re-ignite key fundaments instruments. Monetary targets, becomes of imminent concern such as inflation, interest rates, to the new government. To a or exchange rates, are used to somewhat extent, one can say guide this implementation. that it is not necessarily an aspect of economic expertise that is Zimbabwe is therefore unable needed to instigate transition to use open market operations but an aspect of Political as it does not have a local Will that is in convergence currency in use, but relies on with the need to implement other currencies from other and administer systems and economies. It thus cannot institutions which can stimulate control exchange rates because and facilitate for Foreign Direct our business is insignificantly Investment, Infrastructure small to impact exchange rate reconstruction, policy transition and inflation. Interest rates in a transparent and efficient remain the same and the manner whilst facilitating for difference with the American real gross domestic production. rate is largely accounted by As the errors of the lost decade sovereign risk. open market have become a mere reflection operations are thus difficult of us in the present stead, as a to implement in the current nation we can only look back to Zimbabwean market. However draw lessons whilst our hope for government may issue papers the future we yearn is at our “ for purposes of raising funds wills” grasp. from the market for purposes of meeting their obligations and T.J In relation to Zimbabwe, not to influe exchange rates, what is your comment on inflation or interest rates. protectionism or open markets in this current environment? T.J What can be done to improve the Zimbabwean economy? E.M An open market operation (OMO) is an activity by a central E.M The Macro Economic bank to buy or sell government Outlook- Implementation of the bonds on the open market. A staff monitored program with
  20. 20. IMF and the World Bank remains a critical facet to the address of debt relief and the unlocking of new inflows for development financing. This move is significant to Zimbabwe in that it is the country’s first IMF agreement in over a decade and is a prelude to any future lending engagement. Despite signs of the process stagnating largely due to the political processes, p remains of profound effect to the country’s ability to source external financial and technical support in the future. With the experiences of the GNU having been learnt the hard way in regards to policy formulation and consistency in implementation, we look to the newly formed structures to drive towards policy clarity and consistent implementation. Of key would be an Nationalization process which with new leadership restructuring of the implementation process. Whilst the overall macroeconomic stance remains a function of the new governments mandate and objectives over the next 5 years , in trying to give some indicative proximity we have come up with a 3 s scenario analysis developed to synchronize a possible forecasted future landscape . allow the country to stimulate economy through instruments such as interest rates or exchange rates. As a result, the country’s aggregate exports have maintained an increasing trend since 2009, reflecting a CAGR of 34% through 2012. However, despite these developments, the country’s trade deficit has remained relatively high due to disproportionately large amount of imports. Total imports since the inception of multicurrency have increased by 112% to levels of ~$5.2 billion by December 2012. In the short term, the trade deficit is expected to widen volatile global commodity prices and lack of competitiveness and downside risks associated with the fragile global economy and limited capacity in key sectors. Financial Services sector developments Stagnating growth in the deposit base against a more than proportionate increase in funding requirements continues to incapacitate the sector from adequately matching the economy’s funding needs. Total deposits increased by 5.3% from $4.2 billion in January 2013 to $4.4 billion while total banking sector loans and advances increased by 5.56% from US$3.4 billion to US$3.59 billion. sector in the next five years? To what extend do you think it will contribute to the country’s economic revival? E.M The Memorandum of Understanding (MoU) entered into by the regulator and banks through BAZ in February 2013, resulted in bank charges and interest rates being reduced and the profitability levels of banks were heavily affected. As a result, most banks recorded profits below budget, agreement had material effect to the sectors HY. Performance in ensuing years charges are most likely to be absorbed into basic operations of the banks. • The unavailability of a credit rating bureau on the market has had adverse effect on banks in terms lending. Enterprises and individuals borrowed. Individual customers are hopping from one bank to the next in search for credit facilities without capacity to repay. Resultantly, credit impairment charges have been on the rise, US$26.8 million for half year against US$29.9 million for the full year to 2012. • Cost of funding remains high. With deposits largely being transitory in nature, loans and advances for most local banks are being financed by costly funds, the lines of T.J What is really causing Revenues in the sector were credit that have been accessed Zimbabwe’s economic confronted by the MoU have generally shorter tenures problems? agreement established earlier and when rolled over are even E.M The Zimbabwean economic on in the year which overall more expensive. The continued set up is in such a way that, affected the performance of non perception of Zimbabwe as a economy depends largely on funded income high risk country; make external the export performance the funding very costly and those multicurrency system doesn’t T.J How do you see the banking with a high appetite for risk
  21. 21. demand high interest rates. • Liquidity on the market remains a major cons compounded by the absence of the lender of last resort and lack of tradable instruments. Deposits are generally short term in nature while demand for loans is long term thereby posing high re-pricing risk for banks. • The customer catchment area continues to dwindle as some corporate scale down their business, and banks have fight for business in a shrinking market; • With the advent of mobile banking on the market, banks have witnessed stiffer competition from mobile operators. This has been further compounded by the refusal by some mobile operators to open up their gateway to the banking industry so that they can originate transactions so that in the process they can realize fees and commissions. Banking Sector Outlook with many players scrambling for a little over US$4 billion worth of deposits. economic recovery is also expected to come from various economic and political spheres as efforts to re-invigorate • The effects of the MoU have key production sectors of echoed the need for alternative the economy becomes more revenue sources within the imminent. Banks would have to sector with strong emphasis seek out fresh lines of credit with on sustainable investment in medium to long term tenors. A Information Technology Systems strong stance against corruption and Product innovation and taken by the President is Development. The aptitude to anticipated to go a long way mobilize cheaper lines of credit in attracting foreign direct will also have profound domino investment which is anticipated effect in the sector going forth to easy market liquidity strain. as the local liquidity conditions Government’s proposed position have remained resiliently to revise the banking act is likely squeezed. to send a cloud of uncertainties to investors. • Capitalization efforts will continue to be at the forefront • A less aggressive drive towards of corporate finance and enforcement of indigenization restructuring activity in the and Empowerment law in sector as Bankers strive to meet the financial services sector capitalization requirements. The is expected from the new ability to secure partnerships government to be cognizant of with regional and international the sector’s sensitivity, and the investors will depend largely role of financial intermediation on individual performance to Economic recovery and and potential as well as growth. Already we have heard the prevailing political and comments purporting to a lax economic environment, modus operand, cognizant of clarity and delineation on the the need to boost FDI flows into Indigenization policy with the country. regards new investment will also play a profound role in • Industry face is set to change facilitating foreign investment as corporate finance and into the sector. restructuring activity gains momentum from capitalization • Central Bank regulation is endeavors, mergers, equity expected to intensify in efforts to partnerships and Convertible ensure adequate capitalization financing arrangements are levels as well as to ensure expected mark the face of the systematic stability through financial services sector in the compliance with global Banking coming period. supervision frameworks like Basel II. Like any phenomenon, economic theory is not immune to the mean reversion principle, which holds that over time extreme ends of a spectrum will be eliminated as variables tend towards the mean, weakest players are eliminated while abnormal profiteers are forced to settle for normal profits as the competitive landscape intensifies. Such is the case for Zimbabwe’s banking sector, confronted by revenue restricting legislation, and cut throat competition in a • Pressure to adhere to specific monopolistic competition setup lending guidelines to support
  22. 22. CABS records surplus ZIMBABWE’S largest mortgage lender, Central African Building Society (Cabs), recorded a surplus of $10,7 million in the first half of the year helped by an improvement in interest and non-interest income, latest financial results show. In unaudited financial results for the first six months of the year, net income interest rose by 29% to $2,7 million from $1,95 million recorded in the same period the previous year. The growth was aided by an increase in loans and advances which in the period went up to $296,8 million from $245 million registered in the same period in the previous year. “Net interest contributed 56% of the building society’s total income,” Cabs said in a statement accompanying financial results. Fee and commission income grew by 13% to $12,2 million buoyed by an increase in transaction volumes during the period. Comparatively, operating costs increased by 33% to $17,4 million from $13,1 million achieved in the same period last year as the building society was on expansion drive during the period. As a result, the cost to income ratio went up to 62% compared to 58% recorded in the same period last year. Cabs said total assets grew by 18% to $117 million driven by a deposit growth of 21 % in the period under review. In the same period the building society’s loans and advances increased to $296,8 million up from $278 million recorded in December last year. Cabs added that 10-year mortgage loans improved to $104 million from $94 million achieved in the same period the previous year. In that period, under review Cabs opened an additional branch and rolled out banking agents to improve accessibility. Points of sale acquired through Zimswitch reached 73% while text-a-cash mobile remittances products exceeded revenue and usage target. Going forward the building society said it will pursue growth initiatives to enhance its role in both housing and financing. – Staff writer
  23. 23. AGRICULTURE and FARMING Land ownership key to national food security after the production of the tobacco there is a marketing board which operates a stop order system for repayment and they have been happy with that,” the minister said. Chinamasa said farmers must ensure they honour THE ZIMBABWEAN government is prioritizing the their debts and submit bankable proposals to land question in respect of land ownership and access funding from banks under terms that are tenure to unlock full potential in the agriculture yet to be finalized. sector, a top official has said. “I know farmers who have no land, they are illegally Zimbabwe’s fast track land reform programme renting land from those who have offer letters of 2000, according to the Commercial Farmers and those are being funded by banks, there is no Union, displaced most of the 4 500 active large collateral. Lets strengthen the collection of debts, scale commercial farmers much to the detriment let’s have a system that strengths the collection of national food security. of debts which are lent to farmers ad we do that through stop orders.” This move disrupted land title and banks have been reluctant to fund farmers citing a lack of “When I had discussions with the bankers they collateral. obviously would raise issues about collateral and what a view but I put to them the suggestion and Finance Minister Patrick Chinamasa allayed fears I have already out it to my colleague. We need farmers would continue facing funding problems to revive in a serious way the farmers stop order on the basis that they lacked security as a lasting system. We need to revive it and make it work solution was currently being formulated under especially for crops that are delivered to GMB and the Ministry of Lands. I don’t c any legal problems even to extend that “Obviously the issue you have raised is a separate system to other buyers of grain, that something issue and is being handled in the Ministry of Lands that we can look at.” and at an appropriate moment that situation will Chinamasa argued the problem with local be ratified,” said Chinamasa recently. agriculture is a marketing one. The finance minister however said funding should Agriculture minister Joseph Made added grain still be available to farmers whether or not the buyers must ensure timeously payment to farmers land tenure system is revised. so that they are able to go back to the fields. “First I been meeting the bankers and I want to “The issue of collateral, if you go worldwide, you emphasise this, people fund not because you will that is not the way things are done as people have security but because what you are doing is are suggesting,” made said. viable. What you are doing can produce a cash flow which shows you can pay back the loan that He said local banks were currently funding what matters,” the Finance minister said. bankable projects of any size. He said discussions were at an advanced stage with bankers for a viable funding solution with a stop order system as a possible option. “It’s not only tobacco, cotton, potatoes and may crops that are being funded by banks and to small producers that will surprise you.” “So you have a situation where contractors are funding tobacco producers in communal areas, you know they are funding up to the tune of US$100 000 with no security because they know This comes at a time when government has reaffirmed its commitment to agriculture, unveiling a US$160 million grain support scheme for the sector earlier this month.
  24. 24. The scheme will benefit 1, 6 million households across the country with 10kg of maize or grain seed, 50kg of compound D fertilizer, 50kg fertilizer ammonium nitrate and 50kg lime in old resettlement, small scale and A1 farming areas for the coming farming season with an option for livestock production at a cost equivalent to the grain Inputs Chinamasa said US$39, 1 million will be used to buy seeds, US$50, 1 million for buying compund D, US$57 million for ammonia nitrate and another US$11 million to buy Lime. The move is, according to Chinamasa, a step towards reviving the agricultural sector which has suffered from a chaotic land reform and subsequent lack of funding. The long term objective is to see Zimbabwe regain its breadbasket status for the SADC region while ensuring farming recovers to pole position as the economic backbone. Chinamasa sad government will address crop pricing challenges to stimulate production going forward. “What we have also not mentioned is that we are most unhappy with what is happening in the cotton industry, the Ministry of Industry is going to look into that issue, we are very unhappy that traditional growers of cotton are moving to other crops such as tobacco. This is a very unsatisfactory development, something we should not accept because cotton opens up more opportunities for us because it has more value chains.”
  25. 25. US biotech expert on Agribiotechnology Sizani Weza regulation development, as well as building of scientific capacity in biotechnology. His area of expertise is in Plant Breeding and Genomics and has conducted research on the development and deployment of transgenic crop plants. “We have so much data on these GMOs and we have the data to answer the questions. GMOs are as safe as the other foods we have if not safer. GMOs are the most studied foods in history,” said Dr. Parrott who has published over 80 journal articles in refereed publications, along with 12 book chapters and three patents. A visiting United States biotechnology expert, Dr Wayne Parrott, says the use of biotechnology can enhance agribusiness and fears about genetically modified organisms (GMOs) are founded more on technical concerns than their safety to health. Biotechnology harnesses living systems and organisms to develop or make technologies and products that help improve our lives and the health of plants and animals. Currently, there are more than 250 biotechnology healthcare products and vaccines available to patients, many for previously untreatable diseases. More than 13.3 million farmers around the world use agricultural biotechnology to increase yields, prevent damage from insects and pests and reduce farming’s impact on the environment. Yet concerns about any products of biotechnology such as GMOs continue. It’s safe, says Dr Parrott. “Before anything reaches the market, it has to be reviewed by the food safety authorities in almost all countries,” Wayne Parrott who was in Zimbabwe mid-September. “With these multiple safety layers built into the system, it’s an expensive and lengthy process with millions of dollars’ worth of testing required.” Dr. Parrott, a professor of Crop Science at the University of Georgia, was in the country where he participated in several outreach programs designed to foster dialogue on agricultural biotechnology, ultimately supporting policy and Addressing farmers and academics at an event sponsored by the National Biotechnology Authority of Zimbabwe, in collaboration with the University of Zimbabwe, Climate XL, and the United States Embassy; noted that the debate on biotechnology had an invariable centered on the safety of GMOs. “It is true that it is a topic that is debated,” noted Dr Parrott. “The information has not reached the people, we have a technology where the private sector beat the public sector as far as getting to the marketplace, and as far as the private sector goes half of those suppliers are European.” He said concerns about costs to farmers and other public bodies were a non-issue given that “most GMO seeds are coming off patent and are entering the public domain.” “Eighty percent of the GMO research is by public institutions around the world it ministries of agriculture, universities, international research centers- and the products of their developments have just started entering the market scene,” said Dr Parrott.
  26. 26. Among other issues tacked during Dr Parrott’s visit where biotechnology research in Zimbabwe; strategic partnerships for biotechnology research; benefits, risks and drawbacks of increased use of biotechnology to the business community; key concerns of consumers and how they can be addressed; priority areas of biotechnology and how to engage on the topic. Local scientists noted that Zimbabwe has potential to lead among African countries in biotechnology research but there were no resources. Over 20 years ago, the University of Zimbabwe started a Master of Science program in Biotechnology which produced just over 80 graduates, noted Dr Idah Sithole- Niang, Professor of Molecular Biology and Virology at the University of Zimbabwe. She said some of the graduates are prominent in the biotech industry in South Africa and other countries in 38 now fully doctored. The program has been re-enacted this year and will have a fresh intake in January 2014. Prof Idah Sithole- Niang: “Zimbabwe was one of the first African countries to enact a Biosafety law, and spearhead that with related research. The potential still exists to get back there…in Kenya and Uganda- scientists are excelling in conducting research. We are lagging behind. If you just infuse that with the resources we can become a giant.” Dr Fiona Robertson of Agritech Zimbabwe said seed potato production has decreased over the last 10 years because of lack of equipment and limited support from the government to produce the seeds. She said the country had very good regulations; in place since 1988 but have not been tested but these have not been tested. Professor Sithole Niang, who is also deputy chairperson of the Research Council of Zimbabwe, said there have been discussions to establish a research fund modeled along the South African National Research Foundation to fund targeted research. “We have a policy that recognizes biotechnology as one way of addressing socioeconomic development challenges.”
  27. 27. RETAIL and MARKETING CUSTOMER SERVICE and its BASICS by Gerald Brent. Companies, sole traders and those blessed with the entrepreneurial gift, spend inordinate amounts of time and energy focussing on increasing sales and profits, and rightly so. Always on the hunt for new opportunities, we create front end strategies, strategic partnerships and referral mechanisms to build the ever evolving sales pipeline. Included in this front end activity is often expensive advertising, laborious and intensive activity with, at times, little in the way of results. Perhaps there is an easier way? Ockham’s Razor (one of the statements linked to the medieval philosopher, William of Ockham, and that accentuates the shaving away of unnecessary assumptions) indicated that “the best solution to a problem is usually the easiest one”. Business owners and managers tend to overcomplicate the problems and issues that surround us, and the looking for the one cause with the easiest solution is at the heart of the statement. In my personal experience, both as a business owner and a customer, one of the ‘easier ways’ sits right under our progressive and analytical noses. I think because of its profound simplicity, it escapes our notice. That ‘easier way’ is the provision of exceptional customer service and the adding of significant value to both our existing and new clients. For our purposes here, I will use both a positive and negative, personally experienced an example for reinforcement. Walking with some friends on a warm summer evening along the along the first street in Harare, the place was abuzz and most restaurants were overflowing with patrons. We walked past one that had only a few customers but enticed us nevertheless due to its aromatic impact. We decided to eat there. What happened over the next hour helped me understand why the place was empty. The welcome was gloomy, we had to ask for water, I lit the candle on our table, we had to wait (and wait) for the waitress (who was not busy), we had to get up and get serviettes, there was no eye contact as they walked past us… and so it went. Food was great, service was lousy and I have never been back, nor ever will. The antithesis to this experience was my first visit to Hotel in Harare, Zimbabwe. Warmly welcomed, called by name, preferences listed, rooms cleaned perfectly, etc, made for ongoing and repeat visits. Having stayed there over a 2-month period, I decided, for a bit of variety, to try out another hotel in the vicinity. The rooms and presentation were excellent but the service was incredibly average. The cleaner left dirty cups in my room, no one called me by name, my booking was messed up, eye contact was lacking and so on. Needless to say, I am back at the first Hotel. Upon my return, nothing had changed. Warm greetings with numerous “nice to see you Mr Brent” and I am treated as if I am the most important person there. What was I thinking by trying somewhere else? The restaurant referred to above, like many other businesses, is potentially spending thousands of dollars on advertising, but lousy customer service only gives them one time business rather than repeat business. Thus the bottom line is seriously impacted by both increased advertising spend and decreased patronage; not a great recipe for any business. The hotel on the other hand, after dealing with them once, created a pathway back, with no additional marketing cost and have extracted large amounts of revenue from my wallet.
  28. 28. The Easy Way – For A Healthy Bottom Line For new clients:  Add value straight up. This might be in the form of an upgrade to what they have paid for, a small thank you gift, additional service or product for free, etc.  Ensure you explain the process, what they can expect, your pricing, etc.  Take the risk away. Offer strong guarantees in favour of the client that emphasises that you have to perform and that their business is valued.  Call them by name. general client base.  Referrals  Again, one of the simplest, easiest and overlooked ways of generating business. Simply asking for referrals works. Acquisition cost is next to nothing and is the absolute best way of filling your sales pipeline.  Training Your Frontline Team  Easy but neglected. Train your people to smile (or yourself for that matter), talk intelligibly, look at customers in the eye, go out of your way to make the customer’s experience incredible. It might mean making coffee for them, cleaning up after a job (in the tradesman’s case), showing them around, explaining the process, etc. After they have completed their first lot of business with you, follow them up with a phone call to ensure their complete satisfaction, send them a Surveys And Follow Up loyalty card or discount voucher to assist in their The best method here is a phone call. Vehicles return. service centres must emulate this. Within 24 hours Ask their permission to be added to your mail of a car being serviced, and without faltering in five out list and ensure you keep in touch with them years, make a phone call to ensure the customer is through newsletters, updates, etc, every 30 days. happy with the service received. For existing clients:  Develop a system that when they call or walk in, their details are easily accessible. Train yourself and your team to remember names.  Create levels of memberships that have increasing value.  Reward them for their ongoing patronage. Examples might include upgrades, free entry to upcoming events, social invites, special client evenings, Christmas gifts, complimentary drinks, etc.  Give preferential treatment. Categorise your customers, allowing you to understand who your top tier is and provide something in addition to what you would for your In closing, some personally experienced examples: The Great  Staff who remember my name with the simplicity of a genuine smile.  Employees who notice the small things, taking it upon themselves to improve my condition.  The taxi driver, mindful of my time and money takes the quickest route.  The company, hotel or store that makes me feel like I am their most important client, not just a number or dollar. The Bad  The waitress who asks “do ‘yous’ want a
  29. 29. drink?”  The retail assistant who says “are you happy browsing?” Reinterpreted… “please do not bother me, I have got better things to do”.  The tradesman who grunts and leaves a mess.  Sales people who are more interested in getting the sale than in my needs. The Ugly  Telephony support who upon hearing my complaint say “I understand”. How can they? They are not me!  Invoices that end up double what I expected because things were not explained properly at the start.  The bank that provides one teller for lunchtime queues.  Overhearing foul language from reception staff. As in all things, what you value, shapes your actions. And, if your company puts me first and communicates I am important, I will more than happily be a long-term, paying customer. I will refer my friends, be your evangelist and open my wallet. It will then mean decreased marketing costs, increased sales and profit for you. Easy!
  30. 30. Marketing and ICT with Matildah Zijenah “THE CASE FOR FACEBOOK” With over 1 billion users worldwide Facebook the social networking site continues to grow and engulf novices and old hands in its wake. More and more companies are setting up base on Facebook (following the conversation) hunting down fans through the omnipresent “Like” without which a fan base cannot be built. Research has shown that people “Like” Facebook Pages because they want to stay up-to-date with a particular company’s activity and get to know them better. Another reason people click “Like” is the long standing need for brand association stemmed in the inspirational values that guide our actions as humans. People want to be associated with brands whose values, add value to their own lives and Facebook provides a permission based platform for people to segment themselves based on these very principles. This of course leaves organizations of every industry shape and size to window shop and identity their target markets in a ready to use form i.e “conduct market research”, offer highly targeted valuable information and service ” at a fraction of what it would normally cost. While Facebook marketing is on the rise among businesses, many are still struggling to master the basics. Like the general idea of a marketing campaign strategy to launch a product. When setting up a Facebook page you have to have a strategy in place - a plan of action. Failure to plan can and will in most cases result in an unstructured approach that is not authentic enough to encourage those “Likes” to interact with your brand and incite the kind of action that leads to the viral sharing synonymous with inspired content. In Zimbabwe our corporates have been a long time coming onto the digital platform, but I am happy to report that the few that have dared venture into this territory have found that their audience had been awaiting their arrival. I do not know about you but every time I see a familiar Zimbabwean brand or any brand proudly Zimbabwean on Facebook I am prompted emotionally to “Like” its page. Because the reality is true in Zimbabwe as it is around the world that communities are gathering online and a conversation about your brand has ensued with or without your participation. Have you considered social media as another channel of communication over the last few months? Is your business taking advantage of the Facebook platform? Are you still not sure if it is worth your time and effort? You are not alone But guess what? I’ve got you covered I have some specific how-to advice so you can get rolling along the social media platform. Below are six key issues to consider when venturing into Facebook country!!! 1. Objectives First and foremost outline your purpose for setting up a Facebook page, and remember you can have multiple objectives that include: enhancing customer service, increasing traffic to your website, building brand awareness, increased customer engagement, or building an email list. Whatever or however many your objectives are they must be clear and your page should reflect this purpose. Once you have determined these objective the next step is to prioritize them so that you align your efforts with the most important of your objectives for setting up your Facebook page 2. Content Facebook is a social place; people do not expect to be bombarded with sales pitch upon sales pitch. Infact the opposite is true. People want content that is relevant, fun and useful to them and their friends in order for them to share it. Think carefully about the content you upload onto your Facebook page whether it’s images, videos, funny commercials or information that is valuable to your audience. I recommend having a structured approach. Plan in advance use the calendar to guide your Facebook
  31. 31. activities, and this will ensure you do not become repetitive and boring. The moment you become predictable your audience will stop visiting your page, now that you do not want to happen given the new Facebook algorithm-driven news feed. This new feature means that just because someone “Likes” your page, does not mean they will see your wall posts or status updates. This now requires engaging content that will get comments and shares. So it is critical to keep your content relevant, personal and varied in order to show up on profile news feeds. Facebook insights can help you track which content is most effective for your target audience. They have “Liked your page now it is your job to make them stay. According to Facebook spokeswoman Annie Ta “Facebook is all about authenticity, so if your company is not being authentic or engaging with customers in a way that feels genuine, the community will see right through it”. undeniable and focused visual brand presentation. Ensure that your designs echo the needs of your audience with whom you are trying to reach out to. So get your Facebook administrator to take full advantage of this branding opportunity and be counted amongst the top Facebook never know you may be subject to a case study, which would be great PR for your organization. opportunity to convert from fan to paying customer. You can also promote your page offline and you should in all your traditional channels of communication that include and are not limited to billboards, newspaper adverts, radio infomercials and any other outdoor signage you may have. 5. Time management A lot of the time my new clients will say to me “It’s not that big of a deal is it Matilda just set up 4. Promote our Facebook page and we will Whilst Facebook is not a platform take it from there”. Well I do for you to broadcast business not think so, unless of course however, you must promote you have someone designated your page in order for your to manage your page then audience to find your brand and you will not be serving your your relevant content. Research audience effectively. It takes a has shown that only about 3-5% great deal of time to plan what of your fans actually see the content you will put out to your information that you publish fans, its frequency and quantity onto your wall, as a result in all have to be considered. order to enhance your visibility Time management is critical you have to promote your especially if your main objective page. There are a number of is to enhance customer service, ways you can do this and these the time in which it takes you include offering sweepstakes to respond to complaints and and contests that offer prices comments will determine that are of value to your fans. how your fans interact with 3. Aesthetics You can also use Facebook you. It is in bad taste not to A lot of people overlook the advertising through sponsored respond to comments within importance of design for their stories, promoted posts, you 24 hours of them being posted. Facebook Page; a lot can be can also target people that have It is important to have a clear done with timelines and cover liked your page to promote Facebook strategy in place as to timelines to clearly stamp your targeted content. Remember how you will communicate with brand identity. Facebook now those segments I spoke about your audience; you need a policy offers much more screen real earlier, you can use these wisely in place to deal with the negative estate for your Facebook Page when promoting specific content aspects of being on social media than was offered in the not so that you do not annoy those that clearly outlines how you so distant past, when all we fans of yours to whom the will address such issues when had to work with was a profile content is not relevant. You can they do arise. Timely responses, picture and a few custom tabs. also promote your Facebook relevant content and constant Facebook has made it a priority page on your website, too monitoring will ensure that your to continuously enhance its many organizations do not link fans have their needs met and visual offering, providing brands their website to their page, will stay engaged. the essentials to create an this really amounts to a missed
  32. 32. 6. Terms of engagement There are few rules that you pledge to abide by when you set up a Facebook Page, and these dear readers cannot be broken under any circumstances. As with any terms of engagement should Facebook find you violating any of its terms your Page will come under scrutiny and risk being shut down. Hence just as you will take the time to learn how the tools of Facebook work so too must you learn the rules of engagement. Ensure that you are not setting up your Facebook Page on a personal profile page, consider Facebook rules when setting up contests and events. I guess one violation that will get Facebook on your Page tail is tagging people in photos that you upload into your Page from an event you have hosted or from elsewhere. Not only does Facebook find it offensive but in general people do not like to be tagged in photos without their consent. Take the time to get well acquainted with all the rules stipulated to ensure that all your hard work does not end up in the Facebook recycle bin. So...Remember above all else it is not about you broadcasting your brand, it’s about you know your target audience enough to share relevant content that is engaging on an ongoing basis. Lastly, offer more of the content that resonates with your audience, use Facebook Insights to guide your decision. Here’s wishing you as many relevant “Likes” as your relevant Facebook page can contain!!!! Matildah Zijenah, the Founder and CEO of Identity 365 Media Lab writes in her own capacity. She can be contacted on
  33. 33. LEADERSHIP PERSPECTIVE The modern executive is taught — in business schools and in In Praise of Micromanagement many jobs — that to manage people effectively is to delegate, and then get out of the way. I teach our masters of business administration students at Dartmouth’s Tuck School of What do Steve Jobs, Mickey Business much the same thing, Drexler, and Jeff Bezos all have in except for one caveat: Delegating common? is only step one. It’s not delegate and forget; it must be delegate They are all builders of giant and be intimately involved with brands, from Apple to J Crew, what happens next. to Amazon? Yes, but there’s something else you might not You don’t want to, and can’t, do realise they have in common, everyone else’s job for them. and it is directly related to their But why would you walk away, success — each is (or was) an as so many managers do? When unmitigated, unapologetic, you have deep passion for your micromanager! business, your job, you also have a responsibility to be involved What gives? How could the bane with how your vision is executed. of many of our performance You will likely step on some toes reviews actually be a good along the way and you may go thing? I can’t tell you how too far on occasion, but which many leadership experts have is worse: occasionally butting listed micromanagement as in on a subordinate’s work to Public Enemy No. 1. But, when make a point, or not providing strategically applied, it can be real-time feedback to help that a powerful tool not only to get subordinate grow and excel? The things done, but to develop dichotomy between delegation talent as well. and micromanagement is false If not for Tim Cook, perhaps the and misleading. It’s not one or legend of Steve Jobs would not the other, it’s both! And if that doesn’t sound so easy to do, have turned out quite so well. well, welcome to the big leagues Why would you micromanage of leadership. anyway? Here’s a bad answer: because you don’t trust anyone Being able to handle, and else to do his or her job as well indeed thrive, by doing two as you could. A better answer: opposing things at once is because you are so passionate a hallmark of great leaders. about what you are doing that Such “ambidextrous” leaders you are always striving to make it intensely execute today’s game better. The best answer: because plan while sowing the seeds you have a vision for what your for what comes next. They are business should look like and deeply analytical at the same you are prepared to back up that time as they are looking for creative solutions to business vision with action. challenges. And they are handson delegators. It’s a paradox only for the tired and the timid. And now the fine print Micromanagers must be selective. You can’t delve into the details of everything, and in fact superstar micromanagers don’t. Mickey Drexler might interview every single corporate hire — and more — at the $2.2 billion J Crew, but he lets other leaders manage the IT function. Steve Jobs was intimately involved with each product the company designed, and was even famously involved in designing the glass stairs at the Apple stores. But financial and operational issues were delegated to second-incommand and current Apple chief executive officer Tim Cook. Even Jeff Immelt, CEO of bluechip industrial conglomerate General Electric, is a selective micromanager. For him, intimately knowing the top 500 executives in the company, what their performance and potential looks like and what they need to develop further, are always at the top of his agenda. That’s not a bad role model for any manager, at any level, come to think of it. One key: micromanagers must be experts. What could be worse than a manager immersed in the details who really doesn’t know his stuff? Sam Walton spent most of his time flying in his little airplane to visit stores, deepening his knowledge as he went. When he had something to say, there was deep credibility behind it.
  34. 34. There is a natural limit to when micromanagement makes sense. Once a job, or a company, becomes too complex or too big, it becomes that much harder to gain the visibility and time you need to stay expert. This is a real danger zone for would-be micromanagers. You just don’t have enough time in the day, or energy in the belly, to keep up at the pace that is necessary. Either you embrace the principle of selective micromanagement, or you go down trying to do what cannot be done. Finally, it takes a strong, trusted team to be a micromanager. Could Steve Jobs have spent weeks with the iPhone design team if there was no one else to mind the store? If not for Tim Cook, perhaps the legend of Steve Jobs would not have turned out quite so well. The good news is that the best micromanagers are often the best talent developers. Their attention to detail, their intimate knowledge of the business and their deep involvement in what’s going on actually enables more, not less, delegation. Their position in the centre of the work creates an opportunity for micromanagers to challenge subordinates with big assignments precisely because they are informed. Delegating big does not carry the same degree of risk that it might for the typical manager. And so, the final paradox of the micromanager is this: micromanagers actually help other people get better at what they do. - Capital
  35. 35. The Most Successful Leaders Do 15 Things Automatically, Every Day all areas becomes learned and instinctual over a period of time. Successful leaders have learned the mastery of anticipating patterns, finding Leadership is learned behavior business opportunities in pressure that becomes unconscious and automatic over time. For situations, serving the people example, leaders can make they lead and overcoming several important decisions hardships. No wonder the best about an issue in the time it CEOs are paid so much money. takes others to understand the In 2011, salaries for the 200 question. Many people wonder top-paid CEOs rose 5 percent how leaders know how to make to a median $14.5 million per the best decisions, often under year, according to a study by immense pressure. The process compensation-data company of making these decisions Equilar for The New York Times. comes from an accumulation of experiences and encounters If you are looking to advance with a multitude of difference your career into a leadership circumstances, personality types capacity and / or already assume and unforeseen failures. More leadership responsibilities – so, the decision making process here are 15 things you must is an acute understanding do automatically, every day, to of being familiar with the be a successful leader in the cause and effect of behavioral workplace: and circumstantial patterns; Why Top Talent Leaves: Top knowing the intelligence and 10 Reasons Boiled Down to 1 interconnection points of the Erika Andersen Erika Andersen variables involved in these Contributor patterns allows a leader to confidently make decisions and 15 Ways To Identify Bad project the probability of their Leaders Mike Myatt Mike Myatt desired outcomes. The most Contributor successful leaders are instinctual decision makers. Having done it The Seven Habits of Spectacularly so many times throughout their Unsuccessful Executives Eric careers, they become immune Jackson Eric Jackson Contributor to the pressure associated with decision making and extremely Why You’re Not A Leader Mike intuitive about the process of Myatt Mike Myatt Contributor making the most strategic and Make Others Feel best decisions. This is why most 1. senior executives will tell you Safe to Speak-Up they depend strongly upon their “gut-feel” when making difficult Many times leaders intimidate decisions at a moment’s notice. their colleagues with their title and power when they walk into a Beyond decision making, room. Successful leaders deflect successful leadership across attention away from themselves and encourage others to voice their opinions. They are experts at making others feel safe to speak-up and confidently share their perspectives and points of view. They use their executive presence to create an approachable environment. 2. Make Decisions Successful leaders are expert decision makers. They either facilitate the dialogue to empower their colleagues to reach a strategic conclusion or they do it themselves. They focus on “making things happen” at all times – decision making activities that sustain progress. Successful leaders have mastered the art of politicking and thus don’t waste their time on issues that disrupt momentum. They know how to make 30 decisions in 30 minutes. 3.Communicate Expectations Successful leaders are great communicators, and this is especially true when it comes to “performance expectations.” In doing so, they remind their colleagues of the organization’s core values and mission statement – ensuring that their vision is properly translated and actionable objectives are properly executed. I had a boss that managed the team by reminding us of the expectations that she had of the group. She made it easy for the team to stay focused and on track. The protocol she implemented – by clearly
  36. 36. communicating expectations – increased performance and helped to identify those on the team that could not keep up with the standards she expected from us. 4. Challenge People to Think The most successful leaders understand their colleagues’ mindsets, capabilities and areas for improvement. They use this knowledge/insight to challenge their teams to think and stretch them to reach for more. These types of leaders excel in keeping their people on their toes, never allowing them to get comfortable and enabling them with the tools to grow. If you are not thinking, you’re not learning new things. If you’re not learning, you’re not growing – and over time becoming irrelevant in your work. Leading by example sounds easy, but few leaders are consistent with this one. Successful leaders practice what they preach and are mindful of their actions. They know everyone is watching them and therefore are incredibly intuitive about detecting those who are observing their every move, waiting to detect a performance shortfall. 9. Properly Allocate and Deploy Talent 7. Measure & Reward Performance The Seven Habits of Spectacularly Unsuccessful Executives Eric Jackson Eric Jackson Contributor Great leaders always have a strong “pulse” on business performance and those people who are the performance champions. Not only do they review the numbers and measure performance ROI, they are active in acknowledging hard work and efforts (no matter the result). Successful leaders never take consistent performers for granted and are mindful of rewarding them. Why You’re Not A Leader Mike Myatt Mike Myatt Contributor 5. Be Accountable to 8. Provide Continuous Others Feedback Why Top Talent Leaves: Top 10 Reasons Boiled Down to 1 Erika Andersen Erika Andersen Contributor 15 Ways To Identify Bad Leaders Mike Myatt Mike Myatt Contributor Successful leaders know their talent pool and how to use it. They are experts at activating the capabilities of their colleagues and knowing when to deploy their unique skill sets given the circumstances at hand. 10. Ask Questions, Seek Counsel Successful leaders ask questions and seek counsel all the time. From the outside, they appear Successful leaders allow their Employees want their leaders to know-it-all – yet on the inside, colleagues to manage them. This to know that they are paying they have a deep thirst for doesn’t mean they are allowing attention to them and they knowledge and constantly are on others to control them – but appreciate any insights along the the look-out to learn new things rather becoming accountable to way. Successful leaders always because of their commitment assure they are being proactive provide feedback and they to making themselves better to their colleagues needs. welcome reciprocal feedback through the wisdom of others. by creating trustworthy Beyond just mentoring and relationships with their 11. Problem Solve; sponsoring selected employees, colleagues.. They understand being accountable to others is a the power of perspective and Avoid Procrastination sign that your leader is focused have learned the importance of Successful leaders tackle more on your success than just feedback early on in their career issues head-on and know how their own. as it has served them to enable to discover the heart of the workplace advancement. matter at hand. They don’t 6. Lead by Example procrastinate and thus become
  37. 37. incredibly proficient at problem solving; they learn from and don’t avoid uncomfortable circumstances (they welcome them). Getting ahead in life is about doing the things that most people don’t like doing. 12. Positive Energy & Attitude Successful leaders create a positive and inspiring workplace culture. They know how to set the tone and bring an attitude that motivates their colleagues to take action. As such, they are likeable, respected and strong willed. They don’t allow failures to disrupt momentum. 13. Be a Great Teacher Many employees in the workplace will tell you that their leaders have stopped being teachers. Successful leaders never stop teaching because they are so self-motivated to learn themselves. They use teaching to keep their colleagues wellinformed and knowledgeable through statistics, trends, and other newsworthy items. Successful leaders take the time to mentor their colleagues and make the investment to sponsor those who have proven they are able and eager to advance. 14. Invest in Relationships Successful leaders don’t focus on protecting their domain – instead they expand it by investing in mutually beneficial relationships. Successful leaders associate themselves with “lifters and other leaders” – the types of people that can broaden their sphere of influence. Not only for their own advancement, but that of others. Leaders share the harvest of their success to help build momentum for those around them. 15. Genuinely Enjoy Responsibilities Successful leaders love being leaders – not for the sake of power but for the meaningful and purposeful impact they can create. When you have reached a senior level of leadership – it’s about your ability to serve others and this can’t be accomplished unless you genuinely enjoy what you do. In the end, successful leaders are able to sustain their success because these 15 things ultimately allow them to increase the value of their organization’s brand – while at the same time minimize the operating risk profile. They serve as the enablers of talent, culture and results.
  38. 38. STRATEGY and MANAGEMENT 10 office personalities Which one are you? Every office has a wide range of personalities. Here, spokesperson Michael Davies identifies ten office types. Which one are you? 2. Lazy Git Nothing annoys office workers more than having someone in their team who doesn’t pull their weight. favour could you?” If you are confronted with this question on a regular basis, then I’m afraid you are the office mug. Every office has a mug – someone who will always say yes to any Whether it is not doing their fair task you give them regardless share of the work or relying on of the job, tasks which are often others to carry them through, mind numbingly boring such as lazy gits are generally more photocopying, binding reports preoccupied about checking etc. their Facebook than the task in Inevitably, there is a fine line hand. between giving your fellow If you have developed ways colleagues a hand and being which waste time but make you used. Many mugs delude look busy, such as tidying your themselves by thinking that they inbox or organising your desk, are just being helpful or that their then you probably fall into this assistance will be reciprocated, category. but they are wrong. When you are doing someone else’s work you are not doing 1. Brown-noser Stress pots are highly volatile your own and this has a direct Every office has one of these. people. From the moment they impact on both yours and your These shameless sycophants wake up until they go to bed they team’s productivity. In business the ability to say no is just as suck up to management in the are worrying about something. important as the ability to say hope of promotion. For them, the tiniest set back yes. Have you ever commented on can mean the end of the world your boss’s appearance or do as they know it and result in a 5. Skiver you stick your head round their nuclear explosion emanating Is there someone in your office office door each afternoon and from their desk. who pulls just one to many offer to get them lunch? It is fairly easy to spot if you are “sickies” for it to be believable? If you have then you definitely seen as the office powder keg. If If yes then you have a skiver in fall into the brown nose category you would describe yourself as a your midst. and you should start to think very “control freak” then alarm bells Skivers are arguably worse than carefully about your behaviour. should start to ring now. lazy gits as at least the latter Not only will this alienate your Whilst you may see yourself as bother to turn up for work, colleagues, more often than not management can see right obsessed with the detail, others however both are weak links will see you as a ticking time in the office chain and their through it. bomb ready to blow up in their behaviour needs to be nipped in Trying to get a promotion face over the smallest error. the bud. through brown nosing rather How do you know if you fall into than hard work is, to all intents 4. Mug this category? Well, ask yourself and purposes cheating, and remember, cheats never prosper. “You couldn’t do me a huge how many times you have 3. Stress Pot