Josh Chigwangwa

SMALL BUSINESS BITE SIZE PROJECT MANAGEMENT SOLUTIONS FOR YOUR BUSINESS

2020-01-02T08:57:00.000+00:00

Are you an Entrepreneur or Small business Owner and struggling with ideas on how best to grow your business? I suppose Brexit may have now taken you to round three sixty degrees and uncertainty is driving you crazy! The advice from the ESBM-Hub (https://esbm-hub.co.uk/) is that you need to focus on those aspects of your business which you can control and manage to grow your business and sphere of influence. Your business needs a boost with a dose of better and more efficient ways to manage projects. Ops! Projects, now that is something not in my league. True, most entrepreneurs get thrown by the wayside the moment the buzz word “Project Management” is flicked at them. There is this aura of hesitation and fear of losing control of the business. Most small business owners believe they can go it alone in their business and always adopt a know it all attitude until sales figures nose-dive and go pear-shaped. With an avalanche of project management tools or software, the task becomes daunting, gradually followed by a sense of cluelessness.

This is the point at which ESBM-Hub comes in handy to rescue your business and empower you to regain business confidence and run business operations as effectively as possible. As industry experts, ESBM will institute diagnostic tools to identify your business weaknesses and threats and help you turn around these into viable business opportunities using cutting edge best practice business productivity tools and project management software and advice. Identify your business operations into optimisable projects and programmes, ESBM will help improve your business and to enhance a grip and effective control over your projects and business fortunes. Here are some useful tips to help Small businesses improve business efficiency and productivity:

What is a Project and how is it distinguished from a programme or business as usual operations?
A project is basically a temporary business venture or activity that produces something unique and of value to the business and its clients. This could be a product, service or result that fulfills a business need, a strategic objective or meet market demand. The project outcome needs to produce a lasting effect that is beneficial to the business and meets demands in the market. A business venture undertaking more than one project at any one time becomes a programme. A Project ends once a deliverable as defined in the project has been delivered. The repeated production of the product qualifies as a usual business operation or activity.
Put simply, the design of a small baby toy is a project and a repeated or mass production of a similar baby toy becomes operational production. The production of a bay toy and a doll, for instance, makes a programme for the small business owner.

What is the role of project management in a small business?

Business success does not just happen just because you are producing products in a business. A project manager with the right skills needed in a business to ensure successful project delivery. This is a person who will oversee the production of the product from its start to finish, paying attention to detail regarding the project scope, resources and time required to produce the product. This is the defining point that separates business efficiency and whether a business is profitable, efficient and delivering quality products. How can this gap be bridged or optimised depends on executing a masterpiece of planning, effective communication, organisation, risk management, coordination and effective control of the business? This is achieved by optimising the “Triple Constraints” critical for the delivery of the products.

The ESBM Project Management Golden Triangle is designed to give you a complete overview of the project development cycle and highlight those areas as a business you need to maintain visibility and control over your project and resource utilization.

Project

It is important form the onset to ensure the project is assigned to a competent person to manage the project with the right skills to oversee its successful implementation from its inception to delivery. The
project manager needs to take a lead role in the project. Putting a team together and assigning clear roles and responsibilities to the team. Sharing clear information about the project, what needs to do when and by whom, making sure resources are available at the right time they are needed and in the right quantities and making sure things are done according to plan.

1. DETAILING AN ACCURATE PROJECT SCOPE

The PROJECT SCOPE is an important part of any project planning that specifies the specific project goals, objectives, deliverables, deadlines, any limitations, dependencies and assumptions that need to be done to deliver the project. The Project Scope forms the basis for every decision the Project Manager makes and informs the Project Communication Plan.

2. PRECISION IN PROJECT ESTIMATION

Problems in many businesses surface at this point as a result of failure to accurately estimate the project resources and budget needed at every stage of the implementation process. Several tools exist to support the budgeting and scheduling of resources that help inform the business of the impact of every step in the process and how it impacts the project’s “Triple Constraints” including the quality of the final product or service. Accurate project estimation provides a consistent and reliable system through which the project teams communicate effectively for the project’s success. Proper resource planning facilitates team efficiency and performance in delivering work packages, reducing waste and meeting customers' expectations.
In cases where there are multiple projects proposed for implementation, in small businesses, usually, it’s the dominant person who will decide the sequencing and prioritisation of projects which may be based on their personal likeability tastes and egos. We can work with businesses to capacitate them with effective decision-making tools that can rank and prioritise projects towards greater business profitability based on the meticulous alignment of resources at their disposal, the skill levels and stakeholder expectations. Don’t leave critical company decisions tom chance, it’s a profitable business and not a game of Poker.

3. EFFECTIVE STAKEHOLDER MAPPING

A lot of business fails at the implementation stage of projects as a result of failing to carry out an effective stakeholder mapping exercise. Projects usually involve several players who have both positive and negative impacts on their success or failure. By getting to know stakeholders who have an interest in the project, it helps get an insight into their thinking and expectations. Tools exist that can be optimised for your business to clearly identify these stakeholders and gaining an insight into their expectations which helps appropriately classify them into the right perspectives. Stakeholder analysis helps build intelligence for stakeholder requirements, their influence, and importance in the project. Advice will be on hand as to which stakeholders you always need to keep informed and which ones can adversely impact the success of your project and what is it that you can do to achieve success for your projects. Not understanding your stakeholders is like navigating in the dark. You need to see the light at the end of the tunnel.

4. SOUND PROJECT RESOURCE SCHEDULING VITAL PROJECT AND BUSINESS SUCCESS

Your business needs to employ effective tools for scheduling your resources in real-time and establishes the feasibility of the project plans. This allows you to position your resources at the right time, place and moment. If resource constraints occur during implementation, you need sound advice on how to optimise your resources through an effective scheduling process that provides the ability to smartly inform the project team on optimum resource utilisation. By being able to tap into your resource base. You will be able to assign the best alternate resource utilisation to deliver projects in a win-win situation and maintain constant revenue inflows.

5. OPTIMISING MANAGEABLE WORK PACKAGES AND DASHBOARD VIEW OF PROJECT DELIVERABLES

For your business to prosper, it's critical to effectively manage project outcomes, particularly for small businesses. Why? Because the gearing ratio for small businesses is high for project failures and impacts the business much more adversely than big businesses with high provisions to absorb business losses. Most small businesses prefer to cut corners, hence they have less or ineffective project management processes, business cases are often not rigorously scrutinized and critically analysed and little or no formal processes for justifying projects. It is important for small businesses to get experts to advise on the minimum threshold for progress monitoring and projection of delivery schedules. Simple Dashboard can be employed which allows the stakeholders to constantly monitor progress on projects even when they are on holiday or in the comfort of their homes. This allows them to respond instantly to issues and decisions that have the potential to disrupt the business and even push it into liquidation because of avoidable issues.

Many small businesses still use basic excel project reports which must be updated manually and hence prone to errors and often falling behind schedule with the potential of delaying critical processes and missing essential targets and delivery schedules. Tracking the project progress can be a daunting and challenging task particularly for small businesses that may not be prepared to invest a lot of money in monitoring resource usage. We can closely work with your business to recommend online task management software or tools that can inform your business and important stakeholders with standard systems of capturing progress on each project and highlight when bottlenecks that can delay the project are likely to occur and what options for resource optimizations are available.

6. EFFECTIVE COMMUNICATION ON PROJECTS IS THE LIFEBLOOD OF AN BUSINESS

On average it is said that every project manager spends at least 90% of each day on a project communication with stakeholders and project team members about the project. Many businesses overlook the importance of a clear project communication plan and tools on the overall success and growth of the business. We can recommend some of the most effective Online task management and collaboration tools. This helps reduce communication gaps and provides institutional capacity building within the teams and proliferation of cross-functional skills and the ability to institutionalize effective standard decision-making tools that are good at problem-solving, greater efficiency for the business and prospects for growth.

7. WHAT TO DO NEXT?

As earlier said, never leave the performance of critical deliverables of your project to chance or adopting a know it all attitude. The impact on the business can be catastrophic when it backfires more so if these are issues you could have avoided. It takes just an effort, that first step to contacting us could make a world of difference to you, your business, stakeholders, and revenues.

Joshua Chigwangwa is a Managing Partner and Co-Founder at ESBM-Hub and can be contacted at Info@ESBM-Hub.co.uk.

Zimbabwe Elections 2018 Campaign Discourse

2017-07-06T08:04:00.002+01:00

With the euphoria and fever gripping Zimbabweans in the run up to Elections 2018, there are many election permutations mutating from the so called learned Zimbabwean electorate and jostling for recognition and popularity. The most trending tactics so far the fatigued meet the people rallies and social media hype gripping the nation though far fetched from reality as the majority of rural and urban voters struggle to survive and feed families oblivious of the mushrooming and shrinking of the political space. Zimbabwe today with over 35 political parties, numerous coalitions and multiple offshoots of Independent and Dependant candidates is enmeshed in a vacuous dilemma!

Like any marketing effort, political campaigns have products that need to be sold and consumers that need to be persuaded. Unlike selling soap or soda, though, the marketing efforts of political campaigns have much higher stakes: the product that needs to be sold is the candidate, and the consumers that need to be persuaded are the voters. The ruling party ZANU PF has been in power for 37 years and is renowned for its use of coercion and violence to instil its visibility and on the other hand MDC T chides itself as the most formidable opposition party credible to claim monopoly in its opposition and cowing itself into alliances and coalitions to position itself strategically.

But one wonders whether most of the candidates understand the basic similarity of this election with product marketing. What they may not understand, though, is that many of the same tactics that are used to market products are also used to persuade the voters in political campaigns. One such tactic is repetition.It’s a fact – shoppers will often choose the brand of cookies, soap, hamburgers… or whatever they are shopping for, based on the name they know best. Sure, quality, price, and packaging make a big difference, but unless the brand name is one of the two or three that the consumer knows best, the product often doesn’t stand a chance of being purchased.

The same holds true with political campaigns. Voters, like consumers, have only a limited amount of time in their day – and most of it is not spent thinking about politics. Unlike candidates, volunteers, party leaders and consultants, the voters only think about political campaigns when they are forced to attend rallies, barraged with advertisements on radio and TV as well as mobile devices, receive t shirts and regalia and get coalesced into debates and the like.

Most voters don’t take the time to sit down and reason through the choices they face on the ballot. Instead, many voters simply go into the polls on Election Day and vote for the candidate whose name they know or recognize. That’s one reason why incumbents are so hard to beat – they have been in the paper, on TV and radio, at town hall meeting and in parades, so the voters have heard their name before, even if they don’t know what elected office the incumbent holds.

For this reason, campaigns must work diligently to raise the “name ID” of their candidate. The name ID is the percentage of people who recognize the candidate’s name… who have seen, read, or heard it enough times to know it (even if they don’t know anything else about the candidate). Before the campaign can connect the candidate with a positive message, or introduce the candidate’s issue or bio to the voters, it must first work to raise the name ID of the candidate.

The key to raising name ID is repetition. The more times a voter sees, hears, or reads the candidate’s name, the more likely he or she is to be open to the candidate’s message, and to vote for him or her on Election Day. In short, in politics, repetition is a good thing. If you can get the candidate’s name in front of each of your targeted voters three, four, or five times, you will be far ahead of an opponent who only reaches the voter once during the campaign.

There are many mass communication ways to get your candidate’s name in front of the voters, including live facebooking, rallies and going door to door, doing literature drops, parcelling out party regalia, getting press coverage, placing newspaper, television, or radio ads, putting up signs, etc. The campaign should plan on using a combination of techniques for getting the candidate’s name out there and getting the voters to remember it.

In fact, the opportunities for repetition are endless. Take going door to door, for example. If you simply go door to door, that would count as presenting the candidate’s name to the voters once. If the candidate hands out literature as he goes door to door, that reinforces name ID with a second repletion. The campaign can go even further, though, if it has the resources. The campaign could mail out a postcard to every home the candidate will visit that says “I’ll be in your neighborhood next week.” That’s three repetitions. The campaign can also mail out an “It was nice to meet you last week” postcard after the walk. That’s four repetitions. If a group of voters wanted to put up signs for the candidate, a volunteer could drop them off at a later date. That’s five repetitions. The possibilities are endless.

A major part of any campaign plan should be getting the candidate’s name in front of the voters through repetition on a regular basis. By repeating exposure to the candidate’s name, the voters gradually become familiar with him or her and are much more likely to vote for the candidate on Election Day.

BOTSWANA AND ZIMBABWE FDI: IS IT A CURSE OR PROSPERITY DRIVER: A COMPARATIVE ANALYSIS

2017-05-30T22:22:00.001+01:00

A comparative analysis of Botswana’s Foreign Direct Investment (FDI) to that of Zimbabwe is only achievable by analysing an array of weighted statistical tools and reflecting on past performance trajectory objectively. Botswana just like Zimbabwe is a landlocked country located in Sub-Saharan Africa with a population of just over two million compared to Zimbabwe’s estimated population of 16million. Botswana gained its independence from British rule in 1966 and at the time perceived as one the poorest nations then with a per capita gross domestic product (GDP) of only US$70 according to World Bank statistics. Botswana grew from an agro-based country which was contributing approximately 43% to GDP to a diamond mining economy when it discovered vast amounts of diamonds. Botswana’s real GDP increased at an average annual rate of 4, 6% between 1994 and 2011. Its agriculture productivity shrunk from 39% of GDP in 1966 to about 2% today.

In contrast, Zimbabwe got its independence in 1980 after the unilateral declaration of independence (UDI) in 1965 by Ian Smith as Rhodesia. It was put under international sanctions after this until its independence in 1980. Its growth potential shrunk during this UDI era due to the effects of internal strife and the liberation struggle. Zimbabwe signed the ZIMCORD agreement in 1981 with FDI inflow pledges of US$1, 45 billion economic aid deal of a 3 year period. This generosity from the international community was premised on Zimbabwe’s newly acquired independence and undertakings agreed at the Lancaster House conference in 1981.

Foreign Direct Investment inflows (% of GDP) Botswana

Foreign Direct Investment inflows (% of GDP) Zimbabwe

Comparative World Bank figures show that Botswana did not receive any FDI inflows in 1970 and US$393m in 2015 accounting for 2, 7% of GDP whilst Zimbabwe received US$ 18,7m in 1970 and US$ 399m in 2015 which accounted for 2, and 8% of its GDP. Zimbabwe’s recorded a Current Account deficit of US$ 2595.30m in 2015. Overall, Zimbabwe’s current account deficit averaged US$ 576,44m from 1977 with an all -time high of US$ 698m in 1992 and a record low of US$ 3432, 23 in 2013. On the other hand, Botswana recorded a Current Account surplus of US$ 349,64m in the 4^thquarter of 2016 and averaged a surplus of US$ 172,15m from 2004 until 2016, reaching an all- time high of US$ 1 102,09m in the second quarter of 2016 and a record low deficit of US$ 365.18m in the fourth of 2008.

A brief comparative economic outlook overview shows that Zimbabwe’s GDP growth declined from 1.1% in 2015 to 0.5% in 2016. It is projected to increase to 1, 3% in 2017 due to the above normal rains as a major boost to this agro-based economy. It endured years of mismanaging and endemic corruption due to sanctions leading to economic contraction which was worsened by a severe hyperinflation and subsequent of the suspension of its national currency in favour of a disastrous multi-currency regime. Resultantly, the economy is experiencing severe cash liquidity crisis which has crowded out fiscal revenue performance. This lack of resources has curbed capital expenditure and social policy interventions, exacerbating unprecedented hardships and poverty in both rural and urban areas. The World Bank forecasted Zimbabwe’s GDP to grow to 3, 7% following a good rainy season characterised by Command Agriculture and firming metal prices. Botswana is forecast to grow by 4, 1% against the Sub-Saharan average of 2, and 6%.

Just like Zimbabwe, Botswana’s was one of poorest countries in the world when it gained its independence in 1966 and relied 60% of its recurrent expenditure on international aid until the 1970s. Its per capita income increased from US$ 70 a year to the current US$ 6 000. Botswana’s extraordinary growth was fuelled by the discovery of minerals especially diamonds from about 1974/75 until recently. Its economic success is most importantly due to the adoption of good governance and economic management policies such as the fundamental respect of property rights and equitable rule of law. Botswana has avoided poor governance ethos such as rent- seeking, corruption, primitive accumulation of assets associated with malignant dictatorships and predatory tendencies. However, it is critical to point out that despite this high economic performance, Botswana’s social gains have stagnated. The proportion of poor people fell from about 50% in 1985 to 33% in 1994 and the literacy rate rose from less than 2% at independence to about 85, 1% in 2011 in contrast to Zimbabwe literacy rate which is estimated at 83, and 6% according to UN statistics.

These are the some of the dynamics that contrasts between Zimbabwe and Botswana and are the key determinants that have seen Zimbabwe struggling to attract FDI. It is important to note that countries that fail to develop remain resource dependent and resource abundance may be correlated with economic growth and development mindful of the fact that these resources are volatile to global prices and get depleted in the long run. The abundance of resources is not necessarily a curse but many countries including Zimbabwe have squandered this natural windfall with Chiadzwa in hindsight. Zimbabwe was weakened by the “government curse” which is a disease of the state claiming ownership of all minerals and subsequently succumbing to the temptation of irrational resource utilisation, rent-seeking, corruption and impunity of the law. Most of these factors are the key ingredients that opposed to confidence and trust that deter FDI across the globe.

Looking ahead, both countries have challenges of divergent magnitude. Botswana needs to invest substantially in its social policy and infrastructure to equitably redistribute its resources and economically empower its citizens. Zimbabwe is economically in a critical state and needs to reform and truly commit itself to be developing its capabilities and wealth creating infrastructure that gives future prospects of sustainability and that can only be achieved with purpose harnessed FDI. It therefore means it needs to be prepared to get work with dirty hands and eliminate the “resource curse” bedeviling its leadership. It means embarking on a cleansing exercise to improving on its principles on governance, rule of law and independence of the judiciary, guaranteeing property rights and build investor trust by reforming and overhauling it's archaic and aged hierarchy. It needs to demonstrate policy consistency without necessarily disenfranchising the spirit and minds that ushered in political independence to triangulate economic independence and social justice. Zimbabwe can draw a lot from learning experiences from around the world even from Singapore and China on dealing with issues of graft, corruption and nepotism that is driving away investors.

DIASPORA BONDS: A CASE FOR ZIMBABWE [2013/14]

2013-12-29T12:03:00.000+00:00

DIASPORA BONDS: A CASE FOR ZIMBABWE 2013/14

By Joshua Chigwangwa

[BA Hons Admin: Dip Public Sector: ZAAT]

INTRODUCTION

Zimbabwe has for the past two decades been experiencing chronic budgetary constraints due to problems originating primarily from the land reform program leading to restrictions in accessing multilateral funding support including development loans invoked by the Zidera Act of 2001 https://www.govtrack.us/congress/bills/107/s494/text). These restrictions ignited poverty and political instability precipitating a massive human capital flight of desperate Zimbabweans into the Diaspora who are now estimated at plus or minus 4 million people. An estimated £40 billion in development assistance funding has thus been foregone resulting in the unprecedented deterioration of public infrastructure and services including the collapse of key industries and defaults in international debt repayments.

The global economic crisis has adversely impacted on confidence in debt markets, many countries including Zimbabwe in particular is as a result also experiencing difficulties in accessing and obtaining private financing which is exacerbated by economic restrictions imposed on the country by the US and its allies in 2001 to date. These difficulties have pushed governments to be innovative and explore alternative means and options of accessing cheap resources. The Diaspora bond is one such facility that has managed to sustain economies in distress and Israel has successfully manoeuvred this instrument to bridge-finance its economy. Due to the rise in domestic poverty, many families have been sustained by remittances from family members in the Diaspora. It is now estimated Zimbabwe received about £1,6bn this year alone according to Finance Minister Patrick Chinamasa, from remittances making it the second largest contributor to Zimbabwe's Gross Domestic Product (GDP). The standards of living of the majority of Diasporas particularly in developed countries has significantly improved over time, which makes it worthwhile to target expatriate Diaspora communities as potential investors in capital investment projects in the form of Diaspora bonds (Db). Research has proved that Diaspora bonds and remittances are a vital source of unrestricted funding particularly in difficult times as has been acknowledged in Zimbabwe that remittances did help prop the Zimbabwean economy from collapsing during its worst crisis point in 2008.

BACKGROUND TO DIASPORA BONDS

In general, a bond is basically a debt security instrument with an original maturity date of more than 1 year and is also tradeable in the financial markets. A Diaspora bond (Db) is a bond issued by a country to its expatriate citizens' resident in the Diaspora to tap into their accumulated savings. It is an alternative to borrowing from the global financial institutions, capital markets or bilaterally from other governments. The idea of tapping into migrant wealth is not new. The practise of issuing Diaspora bonds dates back to the early 1930s with the first issuers being Japan and China followed in the 1950s by Israel and later by India in the 1990s. The Israeli bonds have been a success story and are estimated to have mobilised an estimated $25 billion in the past 30 years. According to statistics, Israel’s Diaspora bonds accounted for 20-35% of its outstanding external debt between 1983 and 2003.

Source: Publication by Prof G. Hugo: Adelaide University (2006)

LESSONS LEARNT FROM ETHIOPIA

In considering the floatation of Diaspora bonds (Db), Zimbabwe needs to draw lessons from Ethiopia. Ethiopia is the first African country to explicitly issue Diaspora Bonds targeted at its nationals living abroad. Ethiopia’s first Db issue in 2008 which was unsuccessful, dubbed the “Millennium Corporate Bond,” was intended to finance the Ethiopian Electric Power Corporation (EEPCO) hydro-electric power project. The bid failed to raise the expected cash revenue due to a variety of internal and external factors. Internally, it was mainly due to the lack of trust in the utility to service the debt, lack of faith and trust in the government’s credit guarantee and the overall volatile political climate in Ethiopia at the time. Externally, this was due to competition from bonds in the migrant’s adopted countries particularly the US and the effects of the liquidity crisis caused by the global economic crisis.

Ethiopia’s second DB issue was in 2011 to finance the 5250W Grand Renaissance Dam Project which was issued this time by the Finance Ministry on behalf of a State Utility and incorporated a number of enhancements such as a more concerted effort to engage with the Diaspora community in target geographic locations. The issue incorporated key investment incentives and was less politically driven. It was primarily the emphasis and enforcement of repayment in convertible currency which made the 2011 bond more appealing to investors living in developed countries.

The table below summarises Ethiopia’s Diaspora Bond Issues. :-

	EEPCO Millennium Corporate Bonds	Grand Renaissance Dam Project
Purpose	Raising funds for the Ethiopian Electric Power Corporation	Financing the Grand Renaissance Dam
Currency	USD, Euro and Pound Sterling and other convertible currency, and Birr	USD, Euro and Pound Sterling or Birr
Minimum Denomination	USD 100 denominations but minimum purchase USD 500	USD, Euro and Pound Sterling, in denominations of 50
Maturity	5, 7 and 10 years	5 or between 5-10 years
Interest	4%, 4.5% and 5%	Non-interest bearing Option with interest: 5yr: Libor+1.25% 6-7yr = Libor+1.5% 8-10yr = Libor +2%
Payment of the Bond	At maturity, the bold holder can: i) receive the face value of the bond in foreign currency; ii) purchase another bond with the same face value; iii) deposit in a foreign currency or birr account; iv) pay for import commitments	At maturity
Payment of the Interest	Annually	Every six months
Repayment of the Interest	i) in birr in person; ii) deposit in a foreign currency or birr account; iii) transfer abroad; iv) repurchase additional bonds; v) pay for import commitments	Paid in the currency in which the bond was originally purchased
Transferability	Transferable to a second party	Transferable to up to three people
Taxes	Interest income from the bond free from any income tax	Revenue accrued will be free from any tax

People Move: The World Bank Blog about Migration, remittances and development

A CASE FOR ZIMBABWE: DIASPORA BONDS

In the context of Zimbabwe, there is need for a massive investment on the modernisation of communication tools and technology upgrade that is critical to inducing the Diaspora community to participate in such Capital finance initiatives. There is need for investment in and promotion of increased use of electronic money transfer and payment systems that incorporate international systems such as Pay Pal and BACs to enhance capacity in handling large financial transactions and reduce red-tape. This measure will help alleviate current liquidity problems being encountered and promote wire-transfer payment arrangements thus reducing the need for physical currency circulation of large amounts unnecessarily. This also facilitates the effective monitoring of the flow of remittances including facilitating the securitisation of foreign remittances using established Money Transfer Operators (MTOs). This will go a long way as well to eliminate current problems being experienced by established MTOs such as Mukuru.com which is impacting on public confidence in this system.

Zimbabweans have a high literacy rate and most of its nationals in the Diaspora command high skills mobility potential due to their strong educational background, a legacy of post independence Zimbabwe. A majority of Zimbabweans believe in their culture of investing back home and this is an area where government support is needed to help ensure that these resources are applied in capital projects that have an overall benefit to the aspirations of the nation’s development agenda. This lack of synergy is evident in the thousands of low cost imported vehicles that have ended up making Zimbabwe a dumping ground for vehicles that are beyond their useful life flooding the streets and resulting in a drain of more scarce resources. It is estimated that there are over 500 000 un-roadworthy vehicles in Zimbabwe leading to serious road carnage and a loss to vital human lives. (http://www.herald.co.zw/500-000-vehicles-unroadworthy-mpofu/).

Nyaradzayi Gumbodzvanda rehabilitates Magaya School in Murewa from the Diaspora

A lot of Zimbabweans show a high degree of patriotism to their country and will engage in Diaspora bonds if the right investment climate is created and promoted. There already are a number of Zimbabweans and organisations engaged in micro-financing of small infrastructure projects such as school building projects and financing the education of children from poor backgrounds in communities they originated from, which is a clear signal that there is potential for this facility to prosper if government initiates efforts to tap the Diaspora market using instruments such as the Diaspora bonds are properly introduced into the market. . (http://www.globalgiving.org/projects/rehabilitating-magaya-school-after-a-storm/ ) The following link showcases a UK based Zimbabwean paying school fees and upkeep for more than 200 children from her home area in Honde Valley from her personal savings which is quiet remarkable. http://jmchigwangwa.blogspot.co.uk/2013/03/linda-satimburwa-amazed-at-zaa.html

Linda Satimburwa brings hope to disadvantaged children in Honde Valley from the Diaspora

CHALLENGES FACING ZIMBABWE’S ECONOMY

Due to the nature of political polarisation and manner in which human capital flight occurred, there is very little or no data available that has a complete mapping of Zimbabweans in the Diaspora making it even more difficult to plan how to effectively target and engage this community due to the spatial distribution and lack of accurate information but the areas of concentration including income data. A lot of the Diasporas suffered from lack of proper documentation in the early years leading to a concentration of low level jobs being taken up, but the situation has changed significantly with more Zimbabweans graduating in various post graduate studies and landing into highly skilled and rewarding jobs of late. There is scant information on how much the Diasporas earn, save and invest, key information that can facilitate effective planning and engagement. The ZIMSTATS Office carried a country profile published in 2009 which is not quiet convincing as detailed on the table below based on the sources of data.

A National Migration Strategy was carried out by the International Organisation for Migration (IOM) which published a report in 2009. The detailed report attempted to provided comprehensive migration data although it appears the report concentrated its findings in South Africa and included inconclusive secondary data representative of data from other parts of the world. The report is authoritative and identified a number of key issues for the Diaspora community but lacked weighted data and statistics mainly from parts outside the SADC region. The target population that is anticipated to contribute to the Diaspora bond issue is domiciled in the developed countries such as Australia, UK, USA and of Europe and Asia (http://www.iomzimbabwe.org.zw/index.php?option=com_docman&task=doc_details&gid=10&Itemid=3)
The report attempted to show data about the Diasporas spatial distribution based on isolated reports quoted from a number of authoritative sources but to not provide a comprehensive global perspective as it obtains today. The table below shows the summary data:

Zimbabwe therefore needs to map out detailed information first about its Citizens Living Abroad with a high degree of precision particularly those living in developed countries where there is inconclusive data due to the nature migration patterns, emulating a similar exercise carried out by Australia in 2003 contained in a report published by Professor Graeme Hugo from Adelaide University. See ( http://www.immi.gov.au/media/publications/pdf/aust_diaspora.pdf)

The thorny issue of weak institutional capacity in Parastatals, rampant corruption and lack of accountability needs to be tackled to restore public confidence. Lack of effective oversight on the prudent operations of state enterprises which has seen some CEOs earning more than 15% of a Parastatals revenue in-flows, at a time when such institutions are failing to pay wages to more than 80% of its workforce including the lack of transparency in the accountability of Diamond revenues are some of the current issues of public concern that to be tackled as well. (http://www.financialgazette.co.zw/clean-up-psmas-now/) These become key issues of concern for public interest in being responsive to the calls to subscribe to Diaspora bond floatation and entrusting these resources to these institutions. There is need to heal the rifts that have polarised relationships due to the volatile political climate that has prevailed over the past decade. A lot of Diasporas still harbour bitter sentiments emanating from previous political outbursts that have resulted in loss of mutual confidence between the State and the Diasporas. There is need to research on the clarity and suitability of regulations in the respective host countries to gather and ascertain conformity of conditions of the bonds with local enforcement laws across the globe for smooth operation of these bonds. .

The government is currently facing challenges of political insecurity due to the disputed July 31 polls that are yet to be endorsed by most countries in the developed world and a major stumbling block to mending relations with multilateral institutions. There is need to provide guarantees to policy consistence to reassure the Diasporas that previous decisions that undermined the credibility of the banking sector following the unilateral decisions to collapse Foreign Currency Denominated Accounts (FCA) by the Central Bank will not be repeated. (http://www.theindependent.co.zw/2006/07/21/pay-homelink-proceeds-in-forex-rbz-told/). The other policy issues that are of Diaspora concern regards challenges emanating from the current liquidity crisis and how it is being managed. A number of indigenous owned banks are struggling to meet depositors’ demands and this casts a shadow of doubt on issues of credibility. (http://www.bloomberg.com/news/2013-12-18/zimbabwe-bank-manager-assaulted-as-clients-fail-to-draw-cash-1-.html). Other key macro-economic management issues include measures being taken to resolve the £11 billion debt crisis including the protracted illegal economic sanctions that are crowding out government efforts to turn around the economy.

DIRECT LESSONS FROM THE DIASPORA HOMELINK SCHEME

The Reserve Bank of Zimbabwe (RBZ) set up a subsidiary company Homelink (Pvt) Ltd in 2004 to mobilise foreign currency remittances and facilitate property acquisitions and development for Zimbabweans in the diaspora, a package significantly mirrors the Diaspora bonds. It is believed the conditions of this scheme were not properly thought out and based more on limited assumptions that were more of a replication of the sub-prime mortgage deals that triggered the collapse of Fraddie Mae in the US and triggered the financial housing cash crisis that ignited the global economic crisis in September 2007. As toxic effects of this scheme sank poisonous fangs midway into its implementation, its venom shocked the product which was also exacerbated by severe foreign currency shortages which hit the domestic market.

The RBZ compromised the credibility of the deal following a unilateral instruction to its associate MTOs to pay recipients under this deal in local Zimbabwe currency when the Diasporas were compelled to only pay-off the loans in hard currency which in turn accrued to the Central bank. The decision fuelled the parallel black market causing even more problems for the economy as the Diasporas opted to deal with the more flexible and even more competitive black market. According to experts analysis, the foreign currency exchange rate offered then by the RBZ was far too low to attract the diaspora market and given that it was also a fixed rate which was not responsive to volatile environment that unfolded as the ripple effects of the global economic crisis were setting.

The scheme was dealt with a nail in the head in 2008 when the then Acting Minister of Finance Patrick Chinamasa announced the government decision to discard use of the Zimbabwe dollar in preference of the US dollar as official tender. The turn of events made the scheme unattractive leading to the decision in 2011 for the RBZ to ditch non-core quasi fiscal activities. Although financial products under Homelink had been re-engineered to adapt to the volatile environment, a lot of damage had been done to its reputation. A lot of properties under the scheme were repossessed from the Diaspora participants who felt trapped in the devil's dungeon and unrealistic clauses which were part of the packages. It therefore goes without elaboration, that there already exists painful experiences that have scarred both sides giving rise for the need to put more effort in gathering intelligence data and engaging with the Diaspora to remove predatory tendencies and scheming the Diaspora community.

DIASPORA BOND PROPOSALS AND CONSIDERATIONS

The government through the Budget presented by Finance Minister Chinamasa, earlier this month expressed its interest in engaging the Diaspora to fund some small scale hydro-electric schemes through issuance of Diaspora bonds in return for tax and import duties concessions and participation in the indigenisation programme. In the spirit of transparency and democracy as expounded in Zimbabwe’s new Constitution, it is perhaps advisable that meticulous efforts be made to consult and engage the Diaspora to make an informed input into the complexity of what of form and shape the first Diaspora bond issue should appear like. A one size fits all approach may not attract Diaspora interest taking into account a number prevailing factors as discussed earlier. The offer on the table is only focused on hydro-electric schemes but needs to a have a broader outlook in my view.

It is advisable and prudent to come up with a basket of unique projects covering different sectors that could be optional such as housing, power generation, health facilities, upgrading of infrastructure, tourism development and transportation, etc. This gives flexibility given access to opportunities differs across the globe as some areas may be ideal to use these instruments with flexibility. It is also vital that a frame work be formulated that guarantees accountability, transparency and effective governance necessary to enforce these contracts given the weak institutional capacity that currently exists.

The government needs to take this opportune moment to offer incentives that can guarantee long term engagement mechanisms with the Diaspora. In mind, it should create conditions that encourage the Diasporas to register with and engage with their respective embassies. This should also come with decentralisation of key services like a quick turnaround in the processing and provision of key documents such as birth certificates and passports among others. The embassies need to be also equipped to help Zimbabweans stranded in the Diaspora for whatever reason to provide a protector of last resort status in times of difficulties to reduce cases of people dying either due to destitution and neglect. The government needs to foist and demonstrate a culture of caring and genuine concern for its abroad to make this engagement worthwhile and not be construed merely as a desperate measure to callously milk savings and resources from the Diaspora community in difficult times.

CONCLUSION

This paper discussed the rationale and potential of issuing Diaspora bonds as instruments of raising external development finance drawing on experiences from Ethiopia. Ethiopia has so far issued two Diaspora bonds, the first one was unsuccessful and the second one generated substantial interest in the Diaspora after suitable adjustments and consultations had been taken into account. There is need to deal with challenges affecting Zimbabwe’s economy which discourage participation of the Diaspora community to engage government in infrastructure development. There is need to engage the Diaspora and carry out an exercise to determine their geographic location across the globe, as well as key data such as skills, occupations, earnings, savings and investments and to promote engagement with embassies regularly for data consistency. Australia has carried out such an exercise which can be a learning curve.

The government needs to deal with governance challenges such as rampant corruption, weak institutional capacity and governance polarisation to foster cordial relations with the Diaspora community. There is need to consult the Diasporas on optional projects that they may be interested in investing in and to formulate a framework that guarantees accountability, transparency and capacity to manage the investments. Lessons from the Home link schemes should be a seriously considered given that this is product that failed dismally, taking into account that there are no immediate signs of the economy stabilising in the short to medium term.

REFERENCES

Zimbabwe Bank Manager Assaulted as Clients Fail to Draw Cash (Dec, 2013)
http://www.bloomberg.com/news/2013-12-18/zimbabwe-bank-manager-assaulted-as-clients-fail-to-draw-cash-1-.html

Mapping Issues for Diaspora Participation and Engaging in Zimbabwe’s Reconstruction by Peter Mudungwe (2009)
http://www.iomzimbabwe.org.zw/index.php?option=com_docman&task=doc_details&gid=10&Itemid=3

Migration in Zimbabwe: A Country Profile (2009) by Dr L. Zanamwe and A. Devillard
http://www.iomzimbabwe.org.zw/index.php? option=com_docman&task=doc_details&gid=10&Itemid=3

http://rickymarima.wordpress.com/2013/05/02/zimbabwes-diaspora-question-and-its-economic-colonisation/

http://www.theindependent.co.zw/2006/07/21/pay-homelink-proceeds-in-forex-rbz-told/

http://www.financialgazette.co.zw/clean-up-psmas-now/

http://www.immi.gov.au/media/publications/pdf/aust_diaspora.pdf

http://www.slideshare.net/Ausmerica/the-australian-diaspora-its-size-nature-and-significance

http://jmchigwangwa.blogspot.co.uk/2013/03/linda-satimburwa-amazed-at-zaa.html

http://www.globalgiving.org/projects/rehabilitating-magaya-school-after-a-storm/

People Move: The World Bank Blog about Migration, remittances and development

http://www.herald.co.zw/500-000-vehicles-unroadworthy-mpofu/

https://www.govtrack.us/congress/bills/107/s494/text

http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Economic%20Brief%20-%20Diaspora%20Bonds%20Some%20Lessons%20for%20African%20Countries.pdf

http://www.afdb.org/en/news-and-events/article/diaspora-bonds-in-an-african-context-10289/

ZIMASSET - A DIFFERENT VIEW POINT

2013-12-15T14:59:00.000+00:00

I have had brief time to peruse the ZimAsset Blueprint and wish to commend my comrades at home for putting together such a comprehensive document which is the fishing rod for the "Party" to exercise the mandate handed on the 31 July electoral victory. The document has been adopted by Cabinet and as such is now an implementation authority and guiding principle for the State machinery.

I however need to make some observations which will only serve to make this document more strengthened by way of re-envisioning constructive criticism that will maybe form part of its monitoring and evaluation mechanism. The document lacks mention of the key role of the Diaspora in underwriting its successful implementation. At the recent Diaspora engagement meeting with Hon Minister Mzembi, Diaspora remittances were recognised as the biggest revenue input contributor to the Consolidated Revenue Fund, with remittances from Tourism being the second significant contributor. What this means is that a lot of work needs to be done to understand the nature and relevance of Diaspora remittances and how this feeds into the National Development plans.

How can the Diaspora investments be harnessed to contribute positively to building an income earning structure for the country as opposed to misdirected investment that is more consumptive in nature and hopefully explore a way of supporting Diaspora to invest in sustainable projects that promotes the govt's growth trajectory? According to previous studies, an estimated 67% of remittances to Zimbabwe are channelled through informal means. As the Diaspora, we stand ready to support the initiatives to lobby for the removal of US Sanctions, an albatross hindering the effective implementation of the ZimAsset strategic action plans to revive the economy.

Previous studies carried out have made recommendations for the establishment of a Diaspora Engagement and Institutional Support Framework to cement this strong bond. Due to deficiencies in official data on remittances, it is currently difficult to analyze the macroeconomic impact of remittances on growth and poverty reduction. The Institutional framework which can be done in conjunction with the UZ and Central Statics Office to improve on data collection and reporting systems on remittance flows might help to better understand the flow and impact of both formal and informal remittances. "Despite the lack of official statistics, migrant remittances are a major source of foreign currency as international balance of payments support has dried up. Various studies have established that remittances have helped the Zimbabwean economy to remain afloat despite the negative performance of all other economic sectors. With deliberate fiscal and monetary policies, remittances could be channelled towards local industry through lines of credit and thus help revive local production capacity. "

With proper engagement that guarantees protection of investment and recourse to dispute resolutions, we can predict to see more investment being directed to key sectors of the economy. We have engaged the embassy to host a trade and investment conference on May 24-25, 2014 and these are part of broader issues which we are focused on under the auspices of the Zimbabwe Business Network (ZBN). Item 2.6 acknowledges that there was a significant flight of skills resulting of effects of the illegal sanctions and it fails to look further and appreciate that this is an opportunity to turn around this brain drain to a brain gain that can be used positively to redress economic performance. The country is fast becoming a dumping ground for Japanese vehicles due to lack of synergy with the Diaspora leading to unwise investment to hard earned incomes. If 2 million people in Diaspora all buy a Kombi, this means we will end up saddled with more cars than commuters and harnessing these resources can prove critical to the long term development of the nation. It may wise to tap into coordinated investments that helps drive the economy.

The document appears to be more focused on the co-ordination of govt-centric activities and feel it should do more to encompass manufacturing and productive sector growth that is needed to kick start this ailing economy. Item 3.12 on sustainability of Agriculture, there is emphasis on the Presidential Inputs scheme to help farmers and to write-off as irrecoverable electricity debts US$80m, and while this is politically prudent, it is crippling the farmer work mentality to be efficient and productive to the extent of being self sufficient. This has seen the slackening of capacity land utilisation resulting in the productivity substitution in favour of contract farming deals. The overall effect is the dwindling the national strategic grain reserves precipitating reliance on foods imports. Item 7.12 on "Quick wins for the food security and nutrition cluster", states as its first priority, "To intensify collection of maize from Zambia and redistributing to needy provinces,” again while this acknowledge the required shortfall in production, this is pre-empting a national dependency culture.

Do we have proposals to mitigate these challenges in the long run? This trajectory is certainly not sustainable and came as no surprise when Zambia decided to cancel earlier this year, the standing grain import agreement, a development which extraordinary diplomacy manoeuvres to resuscitate the deal. (1) ( http://zimbabwe-president-robert-mugabe.rsspump.com/?key=20131027124849.crisis-zambia-cancels-maize-deal) (2) http://www.thestandard.co.zw/2013/10/27/zambias-michael-sata-goes-back-maize-promise-mugabe/ As a result ZimAsset at review stage needs to reassure us that this situation is being seriously addressed, this is what will resonate with the people as they get empowered to be the masters of their own destiny.

The document has reassured us that the multi-currency regime will be maintained, but how is this sustainable in the long run without being a draw back to our own growth projections. The recent slump in the US$ against the rand has already started to distort trade with South Africa as the rand is now trading firmer meaning the rand is buying more goods and boosting trade balance in favour of South African Traders. The shortage of US$ notes in circulation is another unintended consequence of using the dollar and of cause the diplomatic farce it dangles with the "sanctions" debacle. There is need to quantify the value and effects of lost business opportunities resulting from lack of accessing the dollar in circulation. Most targets envisaged will be missed if there is no currency in circulation and this also kills the development of small and medium business enterprises. The closure of TN Harlequin resulting in the loss of more than 800 jobs is resulting from lack of demand in the market of its products and can be traced to lack of money circulation in the economy. The current liquidity problems which are constraining banks from lending can partly be addressed by instituting policies that encourage the transmission of remittances through formal means and hence availing remittance funds to financial institutions.

The document fails to fully address the effects of globalisation and how this are impacting on the way we do business on a day to day basis. The issue of introducing international business transaction systems such as PayPal, Pay point and BACs and how this money wire transfer can revolutionaries business in Zimbabwe and help address the challenges posed by the lack of US$ in circulation. The setting up of Special Economic Zones can benefit the economy if conducive instruments that make business flourish are in place and this also helps monitor capital flight and prevent fraud and externalisation of cash subject to tax as gross company earnings. ICT is at the hub of all this and the document is skating over this issue. We need a robust and strategic intent to transform business infrastructure that helps creates downstream industries and small traders which activates and rejuvenates the economy.

The issue of bringing in accountability in the govt thrust towards the management of natural resources needs re-emphasis because the GDP growth targets and projections are anchored on these not so finite resources. These resources need to form the nexus of economic transformation with clear safeguards from plunder. The strategic focus should look at the bigger picture, how these resources can transform the country's economic potential and change the outlook projected into the next 50 to 100 years. The 'Look East Policy' needs to look seriously at how the govt can bring in equipment for the beneficiation of natural resources ahead of sub-contracting foreign firms to assume overall control of these key scarce resources. Gold is Zimbabwe's most important mineral with about 600 registered gold mines across the country comprising about 30 large and medium sized producing an annual output of about 20 tons of gold, which ranks 3rd to South Africa and Ghana in the world top20. So it is of necessity to prioritise the beneficiation of gold internal to boost the market value of final products, boost local enterprise and create employment in highly skilled polishing capabilities.

http://www.jaw-crushers.org/solutions/gold-mining-processing-equipment-zimbabwe.html

By exporting raw natural resource, we are technically transferring in excess of approximately 6 000 highly skilled jobs to India and parts of Asia in the diamond sector alone as well as the downstream demand for goods and services from this work force. Looking at other sectors such as steel and ore mining, this means we can technically rejuvenate the economy and create close to 40 000 jobs resulting in increased tax revenue involves and related demand boosting the economy.

To sum up my analysis, there is need forgovt to move out of its shell and engage more with its Diaspora constituency in a way that opens clear lines of communication to transform the way we do business and relate with the wider world. Some of the countries that have successfully engaged their Diaspora Nationals include the likes of the Philippines, India, Mexico, Bangladesh, Nigeria, Morocco, Kenya and Ghana. Lessons learnt indicate a positive correlation between reforms meant to facilitate Diaspora participation, and the actual participation of Diasporas in areas such as investment, remittances, etc. The reforms/policies not only contributed to the Diaspora maintaining social and psychological links with the homeland, but also served as vehicles for building mutual trust and promoting remittances and investments. The fight for the removal illegal sanctions needs to be intensified to free the country from tactics of modern day slavery camouflaged as restrictive measures. The world appears ready to re-engage Zimbabwe and we need to up our game and use the fishing rods at our disposal.

Joshua Chigwangwa

KARIMAZONDO AFRICA INTERNATIONAL (KAI)

2013-09-12T15:09:00.000+01:00

Karimazondo Africa International (KAI) an International Private Development, Finance and Investment initiative created to be an economic and development vehicle for Africa linking the Diaspora Communities to impact and bring development to their countries of origin. The KAI intends to initially set up Offices in the United Kingdom, South Africa and Zimbabwe with possibilities of future global expansion in response to investment and development appetite determined by demands in the global environment. KAI will engage with Governments, Non- Governmental Organisations (NGOs), Private Partnership players, Small to medium businesses and Individuals to identify, assess and appraise proposed Development projects on the one hand and link these to potential Investors of varying degrees and proportion subject to agreed terms and conditions to take up investments and impact communities through providing sustainable community development projects.

DIASPORA BONDS (DBs) is a debt note that usually matures (is paid back) in 5–10 years, but the term may be less than one year or as long as 50 years. They can be issued on a fixed or floating coupon basis. Floating rate medium term notes can be as simple as paying the holder a coupon linked to the US$ or can be more complex structured notes linked, for example, to swap rates, treasuries, indices, etc. DBs are most commonly issued as senior, unsecured debt of investment grade credit rated entities which have fixed rates. DBs offer more flexibility to the issuer and investor both in terms of structure and documentation.

Introduction

This brief account aims at helping you find out about some of the obscure, or unclear, aspects relating to the Private Placement Opportunity Programs (PPOP), also known as Private Placement Programs (PPP), or under other acronyms like Private Placement Investment Programs (PPIP), etc. There are lots of people who know something, but cannot grasp the whole picture.

Large Instruments Market

As a consequence of the previous statements, there is an enormous daily market of discounted bank instruments involving issuing banks and long chains of exit- buyers (Pension Funds, large financial Institutions, etc.) in an exclusive Private Placement arena. All such activities on the bank side are done as "off-balance sheet activities" and as such, the bank can benefit in many ways. Off-Balance Sheet Activities are contingent assets and liabilities, and as such the value depends upon the outcome upon which the claim is based, similar to that of an option.

Private Placement

All programs in the Private Placement arena involve trade with such discounted debt notes in one way or another. And to bypass the legal restrictions, this can only be done on a private level. This is the reason why this type of trading is so different from the "normal" trading, which is highly regulated. In other words, this business can be done and restricted on a private level only (the private Placement level) that falls down in a special regulation without the usual strict restrictions present on the securities market.

The normal trading known by the public is the "open market" (as the "spot market"), where discounted instruments are bought and sold with bids and offers like an auction. To participate here the traders must be in full control of the funds; otherwise, they cannot buy the instrument and sell them on. And there are no arbitrage buy-sell transactions on this market, because all participants can see the instruments and their price.

However, besides this "open market", there's a "closed, private market" where a restricted number of "master commitment holders" is the inner circle. These master commitment holders are Trust with huge amounts of money that enter contractual agreements with banks to buy a certain number of new issue (fresh-cut) instruments at a specific price during a specific period of time. Their job is to sell these instruments on, so they contract sub-commitment holders, who contract exit-buyers.

These "programs" are all based on arbitrage buy-sell transactions with pre-defined prices, and as such, the traders never need to be in control of the investor's funds. However, no program can start, unless there's enough money behind each buy-sell transaction. And it's here the investors are needed, because the involved banks and commitment holders are not allowed to trade with their own money, unless they have reserved enough funds on the market-- money that belongs to the investors which is never used and never at risk.

The Safety

The real core of KAI trading and its safety is due to the fact that we arrange the buy-sell transaction as arbitrage, which means that the instrument will be bought and sold at the same time with a pre-defined price, and that a chain of buyers/sellers are contracted, including the exit-buyers who often are institutions, other banks, insurance companies, big companies, or other wealthy individuals. The issued instruments are never sold directly to the exit-buyer, but to a chain of up to 3-7, or even perhaps 50 investors. The involved banks cannot for obvious reason directly participate in this as in-between buyers and sellers, but they are still profiting from it indirectly, because they are lending out their money (with interest) to the trader, or to the investor as a line of credit. This is the Leverage. Furthermore, the banks profit from the commissions involved in each buy-sell transaction of debt bank instruments in the trading circle.

You can also realize now why in these Private Placement Programs, the investor funds are always safe without any trading risk, or whatever other risk, except for the normal bank system risk (a bank can still virtually go bankrupt.)

ZIMBABWE TRADE AND INVESTMENT EXPO MAY 2014

2013-08-28T22:28:00.000+01:00

ZIM TRADE AND INVESTMENT EXPO 2013

WE HAVE A VISION TO FULFILL A DREAM

http://www.zimtradeandinvestment.com/index.php?option=com_content&view=featured&Itemid=101

We have a vision and dream to see Zimbabwe propsper, achieve double digit growth projections, create wealth and full employment as the SADC business regional Hub. The Zim Trade and Investment Expo seeks to harness purpose driven investment to kick start and rejuvenate all sectors of the economy and to interface and compete with the rest of the world. This Business Expo comes at an ideal time and moment following stabilisation of the socio-political climate conducive for business growth. The recent launch of the Investment Promotion Handbook at the ongoing UNWTO Tourism Conference in Victoria falls demostrates the commitment by key decision makers in fostering economic growth.

APPETITE FOR FOREIGN DIRECT INVESTMENT AND WHY EXHIBIT

Zimbabwe's Medium Term Investment Plan emhasises govt commitment to raise foreign direct investment levels from the current 4% of GDP to at least 25% by 2015. It has huge endowment of mineral wealth and an educated highly literate workforce with an adult literacy rate of 92 percent. Zimbabwe needs business partners and investors in almost all sectors of the economy and is poised for growth. The country's inflation has been on a consecutive downward spiral over the past six months, with a cumulative marginal fall of 1.73 percent, making the lowest inflation rate in the SADC region. Zimbabwe adopted the multi-currency system and currently uses the US$ which hedges investors and guarantees currency stability from any possible currency fluanctuations which impact on possible devaluation against other major currencies. The problems of red tape were eliminated following the launch of the One-Stop Shop Investment Centre in December 2010, designed to simplify and shorten procedures and guidelines for investment proposals.

OPPORTUNITIES IN ALL SECTORS OF THE ECONOMY

Opportunities in the agriculture sector, the mainstay of Zimbabwe’s economy, include mechanisation, value addition of agriculture produce, horticulture, dairy and livestock.The infrastructure sector offers opportunities in energy, transport, water and sanitation, housing and construction, information communication and technology and SMEs. Mining sector investment opportunities exist in exploration, resuscitation of existing companies, establishing new mines as well value addition among other areas. Zimbabwe's gold deliveries for the month of May increased marginally by 4,6 percent from 1 081,93kg in April 2013 to 1 131,27 kilogrammes in May as output by small-scale miners registered a significant growth whilst the Railways infrastructure needs about US$2 billion for its rehabilitation.

Manufacturing has traditionally been one of the key drivers of the Zimbabwean economy and the sector presents numerous opportunities in the sub-sectors of food and beverages, leather and leather products, packaging and plastics, metals and metal products, textile and clothing, chemicals, ICTs and pharmaceuticals production. The govt has committed itself to support the resusitation of ailing and struggling industries in Bulawayo and Harare. A well developed and diversified financial services sector offers opportunities in insurance industry, money and capital markets development and micro- finance banking.FBC recorded a 20 percent increase in after tax profit to $8.3 million during the financial period ending June 30, 2013 as it continues to be well placed to exploit the new business environment whilst ECOBANK Zimbabwe's profit before tax leapt 2 300 percent to $1,2 million in the half year to June largely driven by growth in interest income.

REGISTER EARLY DUE TO LIMITED PLACES AND HIGH DEMAND!

It is absolutely essential and worthy-while to participate at this Business Expo to interact with key policy and decision makers and make the right investment decisions that will spur growth and prosperity for serious investors and industry players. Follow this link for more detai;ls about this prestigious event which is a must to attend and participate.

http://www.zimtradeandinvestment.com/index.php?option=com_content&view=featured&Itemid=101

MY PROFESSIONAL COMPATIBILITY HOROSCOPE:A LINKEDIN VIEW?

2013-04-12T13:33:00.001+01:00

You are naturally suited well towards the following roles:

Sales

You are well-suited towards sales roles since you are persuasive and often able to convince others of your ideas. When presented with an obstacle, you often come up with out-of-the-box solutions. You can sell to others in innovative and creative ways. If a product is not selling, you will often come up with new techniques to sell it that have not been tried before.

Marketing

You understand how to portray your ideas to make them appealing to others. Combined with some analytical skills, this would make you phenomenal at marketing. Marketing is more art than science, and you thrive in areas with rules are not clearly defined.

Product Management

You like to take build things and pursue your own ideas. When given responsibility to manage a product, if you can believe that its yours and given full responsibility for it, you will excel at the job. However if the role is presented to you as mechanical list of to-do items, you will treat this as someone else's idea and not perform as well.

Executive

You are always looking for opportunities and ideas. In a mediocre organization that is very rigid, you will fail. However within the right company that values innovation, disruption and new ideas, you will quickly rise to the top because of your enterprising nature. You are more well-suited towards small businesses and start-ups that tend to be open and flexible.

Business Development

Similar to your prowess at sales and marketing, you will do well at building partnerships for your organization in a business development role. You will thrive where the opportunities and role is less defined. You are the rainmaker for your organization, and will always keep trying to bring in new opportunities and ideas. When paired with the Social personality-type, you will be a 5-star BD person.

Venture Capital

You believe in taking calculated risks with your time and your money. You would be well-suited towards venture capital (VC, Angel, Private Equity) where you are making risky, ill-defined investment decisions in new and small businesses. Where the rest of the world sees uncertainty, you see opportunity. When combined with an Analytical type, this would make you an ideal junior or mid-level manager. When combined with a Social type, this would make you an excellent partner at a VC firm.

Entrepreneur

This is your best-fit role. You have had some experience organizing things - events, parties, charities or groups. You are naturally good at organizing businesses. You are able to deal with your fear of failure and take calculated risks. All Enterprising types should try starting a business at some point in their lives - even if it is just a small side- business. It will be a rewarding experience.

Inventor

When combined with an Artistic or Analytical personality type, this makes you well- suited to being an Inventor. This also influences what kind of products you will make as an inventor. You may already have thought of new products that are just waiting to be invented. You may also have a patent to your name. When combined with an Artistic personality type, you will come up with the most creative inventions possible.

Secondary Match:

Points:

You are naturally suited well towards the following roles:

Manager

You believe in the tried and tested way of doing things, and excel in structured environments. You are the nuts-and-bolts of an organization. You keep the wheels turning with your disciplined, organized approach. Over time, this makes you invaluable to any organization since you quickly and quietly get work done. Because of this you will rise up the ranks quickly and become a manager, supervisor or executive overseeing your area of work.

Operations

You particularly excel at operations, logistics and the art of the mundane. Getting stuff co-ordinated, delivered, manufactured or supplied on time and per schedule. You have the ability to take a set of procedures and streamline them to make them better. You also have the discipline to be good at doing the same thing routinely, and pay attention to detail. When combined with a Realistic personality type, you will be amazing at this role.

Logistice & Supply chain

With any project, you are good at managing and executing the mundane. Whether it is managing a network of vendors and suppliers, or organizing the tickets for a corporate event, you can get things done efficiently and quickly. When combined with a Realistic personality type, you will be excellent at this role.

Finance & Accounting

When combined with an Analytical personality, this is your best-fit role. It takes some specialized training, but within the highly rule-based world of finance and accounting you will excel. Numbers do not lie. Balance sheets are driven by a fixed set of rules. Because of your discipline and stick-to-the-rules approach, you will be valuable in this role.

Project Manager

When a project comes in that has a list of requirements, deliverables and a deadline, you will do really well. When it is not defined, you will not perform well. Since most projects are structured and defined, this is a role you are suited to.

Customer Service & Support

When combined with a Social personality type, there is perhaps no better customer service rep out there. You care for people, and you have the ability to get their problems resolved within the rules and structure given to you by your organization.

Government

Government is built on a large set of rules and procedures. Most government departments have a sizable bureaucracy. You are content to live by the rules, and when needed, know how to shortcut them to get your job done. Bureaucracy does not intimidate you. You will be a good fit within most government jobs.

Other Match:

Points:

You are naturally suited well towards the following roles:

Executive

You enjoy getting the job done whether it is delivering a shipment of supplies, finishing production on a key component, or meeting a deadline. You also like to see real, tangible results of your efforts immediately. You will excel in executive roles that are about delivering a measurable result and working with physical things - Operations, Production, Manufacturing, Sales etc. When combined with an Enterprising personality type, you will make a solid C-level executive.

Law Enforcement

You see things as they are. As a law enforcement officer, lawyer or a judge, you will come across all sorts of people driven by unrealistic or untrue ideas. You will know how to deal with them based on facts and reality. You can distinguish between fact and fiction, reality and drama. When combined with an Enterprising type, you will be realistic and persuasive, making you an especially good lawyer or counsel.

Construction

The construction industry is about building real, tangible things with your hands. You will enjoy seeing a home or a building result directly from your efforts. You will be effective here in most roles.

Agriculture

Of all the personality types, you are the best-suited towards agriculture. You understand the real important of food production, of being close to real things, and working with your hands. You will enjoy seeing your crops grow. You will enjoy the direct result of your long, disciplined efforts.

Manufacturing Manager

You hate working in industries or roles where people just talk and nothing gets done. In a well-run manufacturing organization, you will enjoy producing your industrial supplies at the end of each day. You will be good at the details of manufacturing and industrial supplies. You will get the job done, and move up the ranks quickly.

Editor, Journalism

Being an editor or a reporter in a news publication will appeal to you since it deals with real events and people. There are daily deadlines, real problems, and real things to get done. You will enjoy being in close touch with events as they are happening, and stories as they are unfolding. You will bring a no-bullshit attitude to finding the facts which most news organizations will value and appreciate.

Surgeon, Doctor

Your dispassionate focus on the facts and reality make you an adept surgeon or physician. You will be able to perform surgery without feeling scared, nauseous or uncertain. When combined with the Social personality type, this will make you an excellent doctor. You'll build caring relationships with patients, and deal with their problems based on research and facts efficiently.

Executive Assistant

Your attention to detail, and your hard work ethic, will make you a good assistant. Whatever the items on today's list, you will get them done. Because of that, others will learn to rely on you for getting the small things done quickly and without hassle.

Other Match:

Points:

You are naturally suited well towards the following roles:

Academics, Teaching

You enjoy the life of the mind. Intellectual pursuit of knowledge can be an end in and of itself. There is great joy in dealing with complex ideas and problems, and coming up with elegant solutions. You enjoy helping young minds experience and learn knowledge, and transferring on what you have learnt. Your career in academia can be a life-long one. When combined with a Social or Artistic personality type, you will make a 5-star teacher.

Researcher (all areas)

Being a Researcher in any area or discipline means being on the cutting edge of knowledge in that area. You enjoy pushing and expanding the limits of knowledge. You scope out the problem, then devise the most probable method to get to a solution. With your highly-developed analytical skills and insatiable sense of curiosity, you can keep researching hard problems until you come up with a solution.

Engineering

You can apply your analytical and problem-solving skills to be a very competent engineer. Whether it is building bridges, designing a circuit or running an experiment, your attention to detail and analytical mind bring you clear advantages. You derive a sense of satisfaction from an engineering task completed. When combined with a Realistic personality type, you will make a 5-star Engineer.

Computer Software

Similar to Engineering, you are very good at computers. Chances are you already know a lot about how to operate them efficiently. You are good at math, at relationships between variables, and understand how software should run. You will be very strong in writing computer code, designing software and architecting complex computing systems. When combined with an Enterprising personality type, you can be a superb technology entrepreneur.

Strategy & Corporate Development

Strategic thinking requires analysis and advance planning. It requires an innate ability to understand cause-and-effect variables, and use that to forecast likely future outcomes. You have the ability to perform well in strategic and corporate development roles at large organizations, research institutions and government think-tanks. You can analyze and prepare a good strategic roadmap for an organization.

Money Management

Your deep analytical skills make you suitable for managing money and delivering better- than-market returns for investors. You can apply your analysis to new investment ideas and show whether they are viable or not. Your understanding of abstract variables, probability and likely outcomes allow you to invest better than average. You would fit in well within a hedge fund, private equity or mutual fund. When combined with a Realistic personality type, you would make the best of investor - one not driven by emotions but by logic, and one with patience.

Other Match:

Points:

You are naturally suited well towards the following roles:

Human Resources

You have an innate understanding of people. You are able to build a good rapport, listen to others, and know how to deal with them. You build good relationships with people. This makes you an excellent fit for Human Resources - whether as a recruiter, counselor or manager. People like talking to you. They feel they can trust you. And you use that trust wisely to help them.

Client Services

Client services is as much about relationships as the job itself. You understand that and excel at it. You can keep people interested and engaged in you. Even if projects are performing badly, you can often use your superior relationship advantages to soothe things over and solve problems.

Customer Support

When combined with a Conventional personality type, you make an excellent customer support rep. You understand how to work within prescribed rules, and enjoy making people happy by solving their problems. You believe that people come first, and your customers can notice that. You are likely to do well and be promoted quickly within a customer support role.

Nursing, Doctor

You make an excellent care-giver, whether as a nurse or a physician. Healing people requires love and understanding, and you have plenty of both. You can build a relationship with your patients based on genuine empathy, which positively affects their healing. They will keep coming back to you, and your practice will grow.

Sales, Consultant

You are a natural salesperson. Because people like you, they are often open to your ideas and what you are selling them. You first establish a relationship, and then introduce your product or service. You may not want to hurt people, so you don't push too hard in selling. When combined with an Enterprising personality-type, you can really excel at sales by being both relationship-driven and persuasive.

Education, Teacher

There is perhaps no greater joy for you than helping teach and mentor young minds. You are helping the next generation. You feel your students are your children, and care deeply for them. When combined with an Analytical personality type, you can excel at teaching in higher-education (college, university etc).

Charity & Welfare

This is your best-fit role. You are naturally good at relating with others, and excel at all sorts of welfare and charity work. You genuinely care about people and this will show in your work. You are likely to perform well at charities.

Other Match:

Points:

You are naturally suited well towards the following roles:

Fine Arts

You believe work should be an outlet for creative expression. You believe in your individuality. You believe that we are here to build and express new things, and that by doing so, we make the world a better place. our sensitivity allows you to see things that others often miss. This can be both a blessing and a curse, but it makes you unique. You are a highly creative person, and would likely excel at all forms of Fine Art - painting, sculpture, drawing and others. This is your best-fit role.

Actor, Theater

Your flair for expression, and desire for attention, makes you adept at the performing arts. When combined with the Social personality type, you can relate to people on-stage with your facial expressions and body language. You have nuance, and your desire for the spotlight allows you to excel at the performing arts.

Writer

This is another common outlet for creative expression. You would derive satisfaction from writing, if that becomes your emotional outlet. To excel at writing, it is best to separate personal and professional writing. Personal is what you write for yourself. Professional is what you write for others. Focus professional writing on areas that you have an expertise in, and that are of strong interest to others.

Inventor

When combined with the Enterprising personality type, you can be a great inventor. Creativity does not always have to be expressed through a paintbrush. It was shine through brilliant new products or services. You have the spark of creativity in you that shows you what is possible.

Graphic Designer, Advertising

Your master of color, speech or form allows you to craft marketing messages in attractive ways so that others will listen. Your are never out of new ideas. This makes you very valuable to advertising agencies, ad networks and other companies involved in selling things.

Director, Film & Movies

Your flair for creative expression can dramatically enhance the art of story-telling in movies and television. We are drawn to good stories, and you know how to make them special. When combined with an Enterprising personality type, you will have both the ability to tell good stories via film, and to persuade others to help you make them a reality.

Music & Entertainment

You can recognize good talent. Your musical tastes are likely well-developed. You could be a good musician, composer or songwriter. Or you could excel within the recording and entertainment industry as someone who recognizes and nurtures good talent.

US BASED HIT SINGER TINASHE SET TO PERFORM AT ZIMACHIEVERS AWARDS 2013

2013-04-06T03:07:00.000+01:00

Tinashe, arguabbly tipped to be the next young solo upcoming act that will rock the US music scene and will be this year's main star attraction to perform at the ZAA ZimAchievers Awards (UK) on 20th April, 2013 at the glamorous Millennium Gloucester Hotel in London.

Born Tinashe Jorgenson Kachingwe on 6th February, 1993 in Lexington, Kentucky but grew up in Los Angeles, Calirfonia. She is a native of Zimbabwean and Irish/ Norwegian ancestry along with her two young brothers Thulani and Kudzai. A fluent Shona speaker, Tinashe is an American singer-songwriter, actress and former model who kicked-off her career as one of the five piece girl band "The Stunners" before embarking on her solo career in 2011.

The group has appeared on "The Today Show" as well as "The Wendy Williams Show" and were announced as the opening act on Justin Bieber's "My Wor;ld Tour".

Tinashe is also famous for her acting debut in Television film "Cora Unashamed" (2000) and from 2008 to 2009 for her recurring role in US sitcom "Two and a Half men" and is also a Model.

She released her first solo music video, a cover of Lil Wayne's single "How to Love" in May 2011. In february 2012 saw the release of "In Case We Die", a mixtapw with four singles. She signed the label RCA Records in July 2012 and released her second mixtape "Revenie" in September 2012.

Tinashe - How to Love (Lil Wayne Cover) Music Video currently with 1,276,762 hits on U-Tube!!

Tinashe is currently working on her debut studio album set to be released later this year. She has been working with producers including Clans casino, Ryan Hemsworth, T-Minus among others.

SEE YOU AT THE AWARDS AS WE CELEBRATE EVERYTHING ZIMBABWEAN!!!

A ZCG PRODUCTION ~ 2013

LINDA SATIMBURWA AMAZED AT ZAA COMMUNITY CHAMPION NOMINATION!!

2013-03-22T14:47:00.000+00:00

CHANGE A CHILD, INFLUENCE A DESTINATION !!

By Josh Chigwngwa

“It is easy to think of donors as being some rich people somewhere overseas whom we will never know. No one is so poor that they cannot make a difference somewhere. So long as we look at ourselves as victims, we become the problem. A gift of a few books to your old school could brighten some child’s day. If you do not make a difference, nothing may become any different any time soon. Complaining never built anything. Do something!”

Inspirational quote from Zimbabwe’s Motivational Speaker, Milton Kamwendo

LINDA SATIMBURWA: COMMUNITY CHAMPION NOMI NEE 2013

Linda Satimburwa is one of this year's Nominees for the ZimAchievers (UK) Community Champion Award 2013 and below is a transcript of my one-to-one person interview with her conducted recently in Essex. I was humbled and inspired by her commitment and selfless devotion to literally move mountains with the palm of her hand.One such person she supported is Ms Faith Matingo who graduated in Accountancy from the University of Zimbabwe among more than 120 people she has funded using her own hard earned cash from working extra hours voluntarily

Linda Satimburwa, originally from Zimbabwe started a self-funded project in 2008 to pay school fees for underprivileged kids from her rural community in Honde Valley, Mutare. She grew up in the same rural village and understands their story. She is a devoted Christian, a dedicated mother of two boys and is so committed to her cause largely due to her background, experiences and upbringing. This background inspired her passion and commitment to fund children from her rural community. Her driving Motto is, “Be the change that you want to see in this World! Be active on the front-line and create the change you seek”. Linda has developed a burning desire to reach out and give less privileged children an opportunity to develop academically to their full potential despite their poor background.

She is a down to earth women from Honde Valley

Linda, CEO and Founder member of Nolpert Trading Pvt Ltd, was inspired by the Zimbabwe Business Network (ZBN) to think outside the box and broaden her sphere and scope of operation. Linda’s passion and drive for business and charity is taking her to greater heights. This journey has taken her to rub shoulders with high profile business persons such as Mike Southon the Beermat Enterpreneur and Financial Mail Columnist, Caroline Marsh Channel 4 Secret Millionaire, Sir Allan Sugar, Betty Makoni CNN Hero and Founder of Girl Child Network World Wide, Justina Mutale CEO Positive Runway, Conrad Mwanza CEO Zimbabwe Business Networking, PR Guru Mavis Amankwa CEO Rish Visions, Washington Kapapiro CEO AAOE, to mention a few.

She pioneered an on-line networking group, “The Power of Networking”, which falls under the “Nolpert Brand”. The Power of Business Networking showcases Linda’s road to success, profiling successful and upcoming entrepreneurs. Since inception in July 2012, the brand has attracted 155 members who are active in business to share ideas, contacts and building networks to encourage the spirit of entrepreneurship. She has a diverse educational background which includes secretarial studies, hotel management, nursing and midwifery and is currently studying a B Sc Honours degree in Family Planning and Women’s Health.

Linda strongly believes that every child has a right to a good education. However, this is still far from being a reality, the majority of African countries especially children in the rural areas. A lot of children still fail to access education due to lack of resources and poverty. For the fortunate ones to be in school, often they are forced to attend classes out in the open due to lack of facilities such as decent classrooms, desks and chairs. “By supporting young disadvantaged children in my area, l hope to sow seeds in their hearts to create a domino effect to transform lives and future generations” She retorted.

Linda’s first engagement as a public speaker will be at Betty Makoni’s “Never again” book launch next month in April where she will speak against domestic violence how it impacts society. She has previously had an opportunity to film and do interviews at the launch of the Charity "Help Us Help Ourselves”, founded by Stephanie Chiyangwa and has at the "Sister-to-Sister" mentoring programme hosted by Viola Ncube, CEO and Founder of iRock UK. The Zimbabwe Business Networking (ZBN), was Linda's first ever Business Networking event she attended in the UK.

You can follow Linda on the Group's face book page “The Power of Business Networking” . Please keep the votes coming and support, make the Rural Children Proud. Thank you.

Below is a transcript of my interview with Linda Satimburwa

Josh: What motivated you to engage in community work?

Linda: My personal experience of poverty ignited the insatiable appetite to educate, empower and to bridge the knowledge gap in my rural community were l grew up and went to school. The struggles in my community compelled me to start a self-funded project to alleviate poverty and committed to sponsor disadvantaged children into education since 2008 as well as advocating for positive change to my community.

Josh: Did you find it easy setting up your charity, what are the challenges you have faced?

LINDA: Personally, l didn’t see it as a challenge as such because it's something that l was very passionate about, l know l faced some difficulties here and there, but I made a personal commitment to do the work. It’s something I have always wished to do stemming from the poverty l experienced. I set out each month to do six extra shifts each month to kick start it, being a nurse and a midwife as well. Through networking with the Zimbabwe Business Network (ZBN) in the last 2 yrs, l was inspired to look beyond established frontiers of my business venture, "The Power of Business Networking” falling under the Nolpert brand. The Power of Business Networking showcases my life transformation journey to success and profile successful and upcoming business owners. Since its inception in July 2012, the concept has attracted about 155 members who are active in business to share ideas, contacts and building connections to encourage the spirit of entrepreneurship

Josh: How has the community around you welcomed this project?

LINDA: They were very surprised about the idea, because in my rural community, l was the first person to do such a thing. We have always relied on donors such as Plan International or World Vision, and so it amazed them and lots of people visited my mother appreciating the inspiration she had nurtured me to prioritise in the community.

Josh: What are the highlights of your achievements or activities you have carried out so far?

Linda: My focus so far is paying school fees and exam fees, so far that is what l could afford. I know there are other things to be done such as building classroom blocks, library books, uniforms etc. I thought the key issue at the moment what to enable the children to enrol in school and sit exams and then if l expand and get other people to help so that l can register a charitable organisation so that l can have more help coming in. . I said to myself “Be the Change That You Want to See in This World”. Be actively on the frontline and create the change you seek. To reach out, give someone an opportunity to develop academically to their fullest capability regardless of poverty. I hope to sow a seed in the hearts of the students I help so that a domino effect can be created to effect continuous positive change to future generations.

Josh: What hurdles have you overcome working with people from different backgrounds and cultures?

LINDA: When I came to the UK, it was a real culture shock, so l had to learn how to interact with other cultures. It is very important how you present yourself and to learn how to approach different situations affecting people from different backgrounds

Josh: How has your effort in this project impacted communities in Zimbabwe?

LINDA: I am passionate about the welfare of the children and through my work in Honde Valley, some have managed to go as far as University and made positive changes in their lives. I managed to obtain consent from some the beneficiaries and these include Kudzanayi Sagwete who passed 10 ‘O’ Level subjects and now doing A level at Samaringa, Febie Saruwaka passed 9 subjects at O level and is also doing A level at Samaringa, Locardia Marowa passed A level with 12 points and waiting to enrol in University, Tapiwa Jaricha and Bright Ndarasika passed A levels and are now all in University, Danny Masara graduated from University and is now a Journalist, Josephine Magota is now a qualified Teacher and Tonderai Chitsamba who is in the Police Force. So far I have assisted about 120 children since 2008 with either school fees or exam fees depending on the need.

"I feel poverty should not define us; every child should be given an opportunity to unleash their full potential and to be a success in life. I want to reach the hard-to-reach children in remote schools - thus my work is rooted and focussed in the rural areas."

Josh: How did you feel being nominated for an achievement award?

LINDA: It came to me as a surprise, l am very grateful to the people who nominated me, it’s something l never expected, l thought l was doing something privately and no one would notice what l was doing. I am so humbled and it’s something l least expected and feel inspired.

Josh: Do you have any message that you think can inspire other people to emulate your achievements?

LINDA: I must point out that it is no secret that the majority of our African people are still not yet used to the concept of giving back to their own communities as people do in the western world, a concept which I am aiming to instil among Zimbabweans. I am aiming at nurturing this culture among our young people by grooming them as well as fostering the same spirit among adult Zimbabweans who have made it in life, to give back to their own communities, for life is all about sharing resources. I think we need to together as people from Africa and see how we can unite and try solve our own problems. Some of the problems have been going on for many years and it’s high time we took responsibility for our own problems.

Visit http://www.zimachievers.com/ to vote and book tickets for this event!!!

A ZCG Production - Rights Reserved.

MORLEEN OKOLONJI-A WOMAN OF SUBSTANCE & COMMUNITY CHAMPION

2013-03-16T23:37:00.000+00:00

"If you educate a man, you educate an individual, but if you educate a woman, you educate a nation". Ghanaian scholar Dr James Emmanuel Kwegyir-Aggrey (1875-1927), one of this century's greatest educators had this to say !!

By: Josh Chigwangwa

Community Category ZAA 2013: Community Champion Nominee

MRS MORLEEN NYIRENDA OKOLONJI

What is the vision that inspired Morleen Okolonji to devote part of her precious time to charity? What is it that inspired her to set up this charity, "Women of Substance Community" (WOS) in Barking, Essex? Morleen was this year nominated for the Zim Achievers Awards (UK) 2013 Community Champion due to be held on Saturday, 20^th April 2013 at the magnificent Millennium Gloucester Hotel in the heart of London. Visit Ihttp://www.zimachievers.com/ to vote and book your seats on-line, tickets usually sell fast on a first-come- first-serve basis due to event popularity and limited capacity.

I was privileged to share a precious moment over a cup of tea with Morleen and getting her to pour out to the world, what it is that inspired her to work for her community in such an amazing fashion. I realised that it takes a devoted heart and selfless commitment to be a woman of substance. I trekked Morleen all the way to Barking in Essex, UK and am grateful of the hospitality l received and rare moment to open her heart, believe me you, it is made of real oak and she is such an awareness and amazing character. She has lived up to the celebrity fame, “The Only Way is Essex”.

Morleen Okolonji is the founder member and CEO of Women of Substance, a community organisation based in Barking, Essex working with young people to nurture, educate and empower them to lead a life of pure substance, free from drugs, alcohol abuse and gangster life fuelled by peer pressure thus depriving young people an opportunity to play an active role in building successful careers in life. According to UK official statistics, in December 2012, 974 000 young people aged 16 to 24 were unemployed, representing 20,8% whilst 1,62 million 18-24 year olds' were economically inactive in the period October to December 2012

Morleen is a trained counsellor, advisor and teacher, currently studying Masters in Teaching and Learning at Edge Hill University in UK and a Minister of the gospel. She was born in Harare, Zimbabwe and has a passion for women who have been oppressed, abused and disadvantaged as a result of their life circumstances. She has a unique role that allows her to reach out holistically especially to women. She also has a passion for young mothers having previously had a challenge of having a child at an early age herself.

Below is a transcript of my interview with Morleen. It was amazing to realise how she has impacted diverse communities and positively contributed to tackling head-on, challenges faced by the UK's Coalition government. This is a clear testimony of how migrant communities are resourceful and contributing to greater good within communities.

Josh: What motivated you to engage in community work?

Morleen: My motivation was triggered by growing youth unemployment and the infamous London riots and preceding disturbances thereafter. The aim was to encourage as many youngsters especially girls off the street and into something constructive and fun-filled. I focussed my target at under-represented 16-25 yr olds’ with the goal of encouraging them back to reconsider learning and acquiring new skills, rebuilding their confidence, giving advice and training as well as entrance to possible job opportunities to give the youngsters access to a better life

London riots inspired me to make a difference

Morleen: The Project is also aimed at supporting young women that have showed a definite interest in training and working in the hair, fashion, and beauty industry, who have made an effort to attend group sessions. “WOS” is growing and expanding by the day, the project is helping an array of youngsters and women who get trapped in that never ending circle of despair and hopelessness. It is also helping to break them out of this circle and we’ll help give them the focus.

Supporting youth people to gain confidence and to be focussed in life

Josh: Did you find it easy setting up your charity, what are the challenges you have faced?

Morleen:It has not been easy because I had to go through a lot of paper work and challenges that can set you back but with perseverance and the right people behind me, “l prefer calling them my “CONFIDANTES” it all worked out for good.

Josh: How has the community around you welcomed this project?

Morleen:“Ohhhh!!” she shrugs, “It was with open arms, I identified a need and filled in the gap and they have been so supportive of WOS to the point that we were even nominated for a Peace Award 2012 for bringing people together by the Council” She beamed at me as I smiled back in admiration.

Morleen Okolonji with the Mayor of Barking and Dagenham

Peace Award for Bringing People Together

Josh: What are the highlights of your achievements or activities you have carried out so far?

Morleen: WOS has helped more than 300 men to identify their mission, vision and to unlock their potential through coaching and mentors, with some success stories. About 150 women were supported to start small businesses, 80 were supported to go back into education and more than 100 into employment.

One such person is Shannon Storey who has managed to secure a job and her own business as a result of winning the Miss BD Role Model 2012 project. She is also due to receive her £1 200 package with La mode. With the title, Shannon is going to be an “Ambassador of Change”. She is signed under the “Women of substance” for the next one year to work on projects such as promoting health and peace awareness to young people. She will be the voice for less privileged and above all, a role model for young people.

Young Women attending sessions to gain skills to start businesses

Josh: How have you found it working with people from different backgrounds and cultures?

Morleen: Very informative, fun, an experience every human being should get a chance to do, you become aware and appreciate the difference people of all walks of life have e.g. the way we talk, eat, relate, socialise.

It’s very educational for me and l loves it so much because l has managed to have friends from so many different countries.

Uniting diverse communities from different cultural backgrounds

Josh: Do you have any plans to work with deprived communities back home and other parts of the world?

Morleen: Definitely! l feel like setting WOS here in the UK and the success its had for the past 5 years, has been a learning curve for me, with everything l have learned and experienced l feel like am really equipped and ready to take WOS to Zimbabwe and really impact Women and their families’ lives, l have already started working and making plans for this.

Morleen: Women of Substance” prides itself on integrating people from diverse communities and cultures to enjoy a shared vision.

Morleen:“So Zimbabwe “Watch this Space”

Josh: How did you feel being nominated for an achievement award?

Morleen: Am very honoured to have been recognised by my fellow Zimbabweans, it has given me a feeling of acceptance and appreciation , because most of the time we hardly support ourselves and l appreciate what ZAA is doing, its sending a message of togetherness and unity between the Zimbabwean community.

I also feel like all the people that were nominated are all winners and blessed, because it’s not easy to do what we do in a foreign country, well done! To all of them, they make me so proud to be a Zimbabwean.

Josh: Do you have any message for other women or young people about your experiences so far?

Morleen: Keep doing what you are doing in time you will achieve!! The power of unlocking your vision or mission is to do what YOU love doing, e.g. if you love waking up every day and going to work as a nurse, mother, wife, teacher. social worker, community worker, etc for me that’s your ministry that’s your “calling as a child of god!, Ministry does not always mean you have to be a Pastor and open a church, the ministry is in our everyday jobs, so if you are doing what YOU love doing already you are impacting lives. Morleen can be contacted by email on: admin@womensubs.info

^^^^^^^^^^^^^^^^^

“What should young people do with their lives today? Many things, obviously But the most daring thing is to create stable communities in which the terrible disease of loneliness can be cured.”- Kurt Vonnegut.

2013-03-14T07:43:00.001+00:00

ANNIE-MARIE CHIDZERO: A GLOBAL VISION TO ERADICATE POVERTY IN AFRICA THROUGH MICROFINANCE EMPOWERMENT

in this blog, my focus features the value and importance of initiatives to empower vulnerable communities ravaged by the global financial and economic crisis. The blogger, Josh Chigwangwa is a founder member of CobFin Finances Services launched in Harare in 2002 as the pioneers of Micro-Finance credit as a means of bridging gaps and inequalities to access resources. In the latest report, reporter Lucy Conger speaks with Anne-Marie Chidzero about her career in Africa’s microfinance industry, the developments it has undergone in recent decades, and the work ofAfriCap, where she serves as CEO. An edited transcript of the interview follows.

A daughter of Zimbabwe before it won independence, Anne-Marie Chidzero was raised in Africa and Europe. Her studies and work took her to Canada and the United States, but she always knew she would return to Africa. Chidzero studied economics, inspired by her father’s role as finance minister in the newly independent Zimbabwe. Unlike her father, she focused on the private sector in her master’s degree studies. “I felt strongly about the role of the private sector for Africa,” she says.

Early in her career, she worked with small enterprises at the UN Center on Transnational Corporations. There, she honed her skills in identifying entrepreneurs and creating entrepreneurship training and platforms that linked small business with multi-nationals and the financial sector. On joining the World Bank in 1993, her work broadened to include micro, small, and medium businesses. As part of the team that launched the Consultative Group to Assist the Poor (CGAP), a multi-donor initiative aimed at improving financial services for the poor, Chidzero conducted financial appraisals of microfinance institutions (MFIs) and led training in best practices for MFI staff as well as donors and governments.

She moved back to Zimbabwe in 1997 and then to South Africa where she has consulted on microfinance and financial sector development while raising her two children. Chidzero has spent the last 10 years dedicated to making markets and financial sectors work for the poor. As a consultant to FinMark Trust and in various roles at AfriCap Microfinance Investment Company, Chidzero works to adapt regulatory and policy frameworks for financial inclusion at the bottom of the pyramid and seeks to introduce innovations such as microinsurance.

At AfriCap, she manages the equity investments of the fund. AfriCap buys shares in regulated MFIs and buys quasi-equity (such as convertible loans) in MFIs that are not yet regulated, aiming to convert them to equity holdings once the MFI becomes a regulated entity. All of the invested companies of Africap are managed by Africans.

Reporter Lucy Conger spoke with Chidzero by telephone, in her office in Johannesburg. An edited transcript follows.

Conger: How did you get started in international development?

Chidzero: My passion for development work stems from my upbringing. My father, a native of Zimbabwe (then Rhodesia), worked for the United Nations for a long time. As we could not live in then-Rhodesia because my parents were a mixed couple, we lived in Ethiopia, where I was born, Kenya, then Switzerland. My father always spoke of his dreams for Rhodesia. Later, my father became finance minister of independent Zimbabwe and that greatly influenced my desire to contribute to the African continent from an economic perspective. There was a slow shift at that time away from a more socialist to a more capitalist approach to development and the private sector was seen as the engine of growth. At the United Nations, I worked with transnational corporations in developing countries, creating links between small businesses and corporations as part of the value chain.

Conger: You were directly involved with the World Bank’s initial forays into microfinance and with the launch of CGAP. What was your role there?

Chidzero: At the CGAP, I traveled to African countries to identify the World Bank role in microfinance. At the World Bank, microfinance was seen as a tool for poverty alleviation. They understood the importance of getting this right. My role was to share best practices with country offices in Africa and to feed microfinance into the strategies for the financial sector and the Bank’s country assistance plans. I always believed the private sector was the way to do this; that is a thread throughout my career.

Conger: What are the landmarks in the development of the microfinance industry in Africa?

Chidzero: When I began working, microfinance in Africa took the form of either large, informal savings clubs or non-governmental organizations (NGOs) providing revolving funds and not focusing on interest and repayments. When we engaged with policymakers, they couldn’t understand how you charge interest on loans for the poor. Equity Bank of Kenya was a landmark, it convinced people that one can profitably serve this market, and Equity Bank is run by Africans. Now, there is a real understanding among policymakers that microfinance is part of the financial sector and policies and regulations must provide an enabling environment for microfinance to grow and for the development of more inclusive financial sectors. And also to support innovation in the financial sector to the benefit of those that do not have access to financial services.

Conger: What is Africap’s strategy for investing in MFIs?

Chidzero: We’re fully invested, so our strategy now is to build our institutions and create shareholder value. Twelve investments are MFIs at various stages of growth, one is a payment platform, another is a bank working in the cell phone transactions space. We are also looking for opportunities to exit [from] some of the investments.

Conger: How do you strengthen the institutions, and how is capacity-building financed?

Chidzero: Africap takes an active role in the operations of its portfolio companies. Through its technical assistance facility, Fintech Africa, it is able to provide capacity-building support and TA to AfriCap portfolio companies. FinTech provides technical assistance in areas like management information systems, and it trains investee staff in risk management, financial analysis, governance, accounting principles, and skills for loan officers. FinTech also places experienced technicians in MFIs for two years and there they train operations managers, finance directors, and audit managers. FinTech allows us to accelerate institution-building. The costs are shared, with 40 percent coming from the MFI and FinTech providing the remainder with funds provided by international donors.

Conger: What are some of the innovations you are working with?

Chidzero: Cellphone banking is being introduced through FinTech, which is preparing all Africap investees with management information systems that can eventually engage with cellphone banking. One of the Africap investments is a tech company with a platform for mobile banking and the use of cards, and another investee is a company with leadership in cellphone banking. Mobile banking is promising due to the low population density in Africa and the low costs and high penetration of cellular service on the continent. We’re on the tip of the iceberg.

Conger: How do you evaluate the success of Africap as a model for private financing of microfinance in Africa?

Chidzero: The jury is still out. We have successfully done three exits during the first and second funds and these generated positive returns. We have also made losses, and had to write off some institutions. There are lessons both in terms of Africap’s investment decisions and the spread of the portfolio. We tried to diversify country risk/political risk, and also have a large footprint across the continent. With 14 investments across the continent, and a very small investment team, overseeing the investments becomes a challenge from a cost and human resource perspective.

Conger: What other challenges does the fund face?

Chidzero: It’s been tough, one needs to have a long-term horizon. Microfinance is a difficult business. For those who think they can invest and make a quick financial return in Africa, I wish them luck. We have lost some value in our portfolio and are working now towards increasing shareholder value and building strong, profitable institutions with good outreach. We see good potential for this as we work closely with FinTech. I believe the glass is half full. I’m very excited about the challenges and opportunities this portfolio holds to generate both social and financial returns.

Conger: Would you change the investment strategy?

Chidzero: If I were to redo this, I would say, “Let’s find African leaders who have a passion and vision for microfinance, and support them to realize their vision.” To a certain extent we have done that. I also think a regional approach makes sense. We could focus on institutions that could forge joint ventures across national borders. I would also reduce the number of investments, and provide more capital to fewer companies. I believe we have a unique formula – where we can combine TA support with equity, while playing a very active role in the operations of the investments. We are all, at AfriCap and Fintech, from the board to the management team, working towards making this formula a success story. It is going to take a lot of hard work and dedication.

Conger: In addition to providing equity capital to MFIs, Africap also plays an active role in governance of MFIs. What are the contributions Africap has made through its governance role?

Chidzero: We grouped all of the CEOs of Africap investees into an Africap network which meets once a year. There, they share lessons and business ideas. At the last conference, the focus was on governance and leadership and the role of a board for MFIs. Africap sits on all of the boards of our investees. We try to see that the boards of the MFIs use practices of good reporting and good understanding of the financial statements. We’re encouraging our institutions to report with transparency and to join the Association for Microfinance Transparency. Additional support comes from FinTech, which is developing a training initiative on governance for the portfolio companies.

Conger: From your vantage point overseeing investments in MFIs across Africa, how do you see microfinance evolving on the continent?

Chidzero: The story is “watch this space.” There are a lot of fragile institutions. The issue we deal with is how to do microfinance economically—the jurisdictions are small, population density is low, and finding human resources is difficult. There is a lot of demand for microfinance; building up the staff and operations of the institutions are real challenges. Africap wants to build leadership; that is key.

Conger: It seems remarkable how work with the private sector, financial access for the poor, and Africa are interwoven in such a consistent way throughout your career.

Chidzero: I knew at university that I was going to be a daughter of the African soil and make a contribution to the continent.

Acknowledgements to Annie-Marie Chidzero, Lucy Conger, Center for Financial Inclusion and the World Economic Forum.

UHURU KENYATTA NARROWLY WINS KENYA'S POLLS: ARE THERE ANY LESSONS LEARNT FOR ZIMBABWE ?

2013-03-09T23:52:00.001+00:00

Uhuru Kenyatta casts his ballot

Uhuru Kenyatta (51) won Kenya;s electoral polls by narrowly beating his rival Raila Odinga (68). Kenyatta garnered 6,173,433 (50.07%) compared to main rival Raila's 5,340,546 (43,3%). Kenya, with an estimated population of 32 million people has 14, 352,533 registered voters of which 12,330,028 cast their votes representing an impressive 86% voter turnout, which represents about 38,5% of the overall population. Uhuru has since been confirmed as President Elect for Kenya despite protestations from Raila who queried the electoral process before and during the count. The process surprisingly witnessed peaceful protests in stark contrast to horrific incidences of ethnic violence which marred the previous elections which culminated in a transitional government. Poll Observers and the EU have endorsed the polls as a success and peaceful. US Secretary of State John Kerry has since hailed the Kenyan people for conducting a peaceful poll.

Lessons emerging from the Kenyan election appears to indicate that the Kenyan people have shown a high degree of voter awareness and responsiveness to exercising their right to vote with a record 86% voter turnout. In Zimbabwe's instance for the 2008 elections, the estimated population then was 12,754,378 with about 5,5m registered voters. In the 2008 March elections, Tsvangirai polled 1,195,562 votes against Mugabe's 1,079,730 while in the June elections, Tsvangirai got a paltry 233 000 votes compared to Mugabe's 2,150,269 votes. This accounted for about 41,4% of the registered voters which represented approximately 18,7% of the overall population. It is critical to encourage more people to register as voters and to intensify voter education so that more people exercise their right to vote on Polling Day. The ability to attract large crowds at campaign rallies will not necessarily translate to an electoral landslide victory and may instead instil a complacency and a false sense of popularity.

Raila Odinga casting his ballot.

What maybe also be emerging is that perhaps it may be "unafrican" to concede defeat or let alone congratulate the winning candidate, a prerequisite for respecting the will of the people. Despite endorsements of a peaceful electoral outcome, losing rival Raila Odinga refused to concede defeat and has vowed to contest the results through the courts claiming electoral fraud and irregularities. The Kenyan people however, appear determined to avoid a repeat of the violent aftermath of the disputed 2007 elections, which claimed the lives of more 1200 people through ethnic violence that spread across the country. The ability to absorb pressure from party supporters in the face of defeat is the other lesson. Raila Odinga’s victory starved supporters in the Nairobi slums of Kibera and Mathare had expressed bitterness, declaring lack of confidence in Kenyan authorities including the Electoral Commission. Odinga however urged his supporters to refrain from taking to the streets and instead opting to pursue the matter via the courts.

The aftermath of pressure emerging from pledges with external players as electoral underwriters and perceived manipulation and influence from the West. Raila's strong links with the West may have also made him pay dearly in the electoral polls. Raila Odinga, popularly known to Kenyans as Agwambo, the son of the first Vice President of Kenya, Jaramogi Odinga is believed to be a first cousin of US President Barrack Obama, through Obama's father. The lesson is perhaps to have the ability to assess the degree of sensitivity arising from links with the US and other EU countries. There is also an emerging tradition of taking "as personal spite", results of an electoral outcome including the tendency of assuming this result as an outright rejection by the people rather than appreciate that one's ideologies or electoral strategy is the direct cause of one's failure to gain trust and reliability from the electorate. Kenya has also evolved a new leaf and chapter of less violent polls in the history of its politics and this is an opportunity for its political leaders to be selfless and seek to unite its people.

The Kenyan people collectively and regardless of political or ethnic persuasion should come first and this juncture should see the entire nation embracing each other as one. This also puts demands on Uhuru to put aside differences and honour political pledges that the Kenyan people are yearning for. Uhuru needs to extend a gesture to Raila and accord him due respect as an alternative political voice that will bring checks and balances to the new govt!! Its no longer a contest but an obligation to value the electoral pledges and transform the lives of the Kenyan people to economic prosperity, peace and better standards of living. As Zimbabweans, there is a lesson learnt on the benefits of seeing through an electoral process free of violence and political intimidation and how this translates to a smooth process of peace and tranquility. After all, its only an electoral process which is an event, valuing our lives and relationships as a nation united by common links as a sovereign nation is paramount as opposed to giving preference to our political persuasions and gravity of external influence.

The focus has now shifted towards cash-strapped Zimbabwe tasked with the undaunting challenge of holding the Constitution referendum on March 16, followed by the parliamentary and presidential polls thereafter. The process is hinged on the sanctions debacle, lack of resources to fund the exercises and political banter. The run-up to the referendum has been calmer due to consensus from the main rival parties, ZPF and MDC-T, for a "Yes" vote to approve the proposed draft constitution. There has been incidences of police high handedness to reign in civil society groups and isolated reports of unsubstantiated politically motivated violence, a characteristic of anticipated events in the run up to elections due to tempers fanned by heights of political tension.

NO AFRICAN PRESIDENT DESERVED TO WIN THE US$5m LEADERSHIP PRIZE FOR 2012: MO IBRAHIM FOUNDATION PANEL !!WHY?

2012-10-22T00:17:00.001+01:00

NO AFRICAN PRESIDENT DESERVED TO WIN THE US$5m LEADERSHIP PRIZE FOR 2012: MO IBRAHIM FOUNDATION PANEL

http://www.africareview.com/Have+Your+Say/Mo+Ibrahim+prize/-/1216562/1533834/-/70cqr0/-/index.html

I tend to disagree with the decision made by the Mo Ibrahim Foundation panel that no African president deserved to win the coveted $5m worth leadership prize in 2012. entirely. The prize should have been given to the new President of Malawi Joyce Banda, in recognition firstly, to the people of Malawi in being selfless and allowing a smooth power transition following the untimely death of the incumbent, Bingu wa Mutharika.

Secondly, the new President has stirred Malawi towards a new path that is redefining a new era and governance ethos based own reconnecting with the generality of the Malawian people and the regaining the confidence and support of Multi-lateral Institutions including the global communit. She has reformed structures of governance which has attracted confidence of the International Institutions and created a conducive environment to attract foreign investment and development assistance. In May this year Britain pledged £23m to help stabilise the Malawian economy and £10m for the country's health system and bi-laterally negotiated and persuaded Zimbabwe to repay in kind, a long outstanding debt of US$17m.

The zero tolerance to corruption and opulent life-style for Politicians and Senior figures has set Malawi on a path deserving this leadership prize. Joyce Banda introduced a controversial decision to either sell or lease the impoverished country's £8.4m presidential jet and fleet of 60 Mercedes government cars and instead apply the proceeds from the sale towards provision of basic services to Malawi's poorest in urgent need of relief following massive devaluation of the Malawian Kwacha by one third on the advice of the International Monetary Fund (IMF). The measures were necessary to cushion Malawi from the effects of wild-cat public sector strikes due to poor salaries and conditions of service including student demostrations. She has managed to stabilise constitutional crisis in Parliament following a charade of defections between the Democratic People's Party (DPP) and the People's Party (PP) which she formed in 2009 when she was expelled from the DPP.

Malawi, one of the world’s poorest countries, has faced growing macroeconomic management challenges for several years. In 2010, Malawi secured an Extended Credit Facility (ECF) from the IMF and the government adjusted fiscal and economic policy accordingly, but was unable to meet the IMF targets set at end-December 2010 and June 2011. Further measures taken failed to remedy the failings and donor countries suspended budget support.

In 2012, under Joyce Banda's direction, the new administration moved swiftly to devalue the kwacha, adopt a flexible exchange rate regime and liberalize current account transactions to address the country's chronic balance of payment problems and improve the outlook for poverty reduction and growth, leading to the approval in June 2012, of a new three-year IMF funding support under the Extended Credit Facility (ECF) amounting to about US$ 156.2 million. This funding is boosting real GDP growth from 4.3 percent in 2012 to at least 6½ percent per year from 2015.This will lead to the scaling up of social protection programs to mitigate the adverse impact of adjustment measures on the most vulnerable segments of the Malawian people.

In conclusion, given the optimistic global economic climate resulting from the global financial crisis and the challenges of its effects in the Eurozone, the dramatic about turn in Malawi and pace of economic reforms cannot go unnoticed, I rest my case...hear hear hear!!!!!

Josh Chigwangwa is an Independent Researcher and holds a BA (Hons) Admin degree from Hertfordshire University, a Public Sector Accounting Diploma from Harare Polytechnic College and more than 10 yrs Public Sector experience in Zimbabwe. Contactable on jmchigwangwa@hotmail.com

Josh Chigwangwa: RE-ENGINEERING EDUCATION AND SPORT TO BE THE EPI-C...

2012-08-21T18:19:00.001+01:00

Josh Chigwangwa: RE-ENGINEERING EDUCATION AND SPORT TO BE THE EPI-C...: The London 2012 Olympics are now a part of our history and focus is now on political parties haggling of who has the right and muscle to...

RE-ENGINEERING EDUCATION AND SPORT TO BE THE EPI-CENTRE OF ZIMBABWE’S ECONOMIC GROWTH

2012-08-21T18:11:00.001+01:00

The London 2012 Olympics are now a part of our history and focus is now on political parties haggling of who has the right and muscle to massage the COPAC-Led Draft Constitution. Zimbabwe made history in that no medals were achieved in the games despite phenomenal achievements from the seven athletes who represented the country. The games concluded with the appointment of Kirsty Coventry to the IOC Athletes board, but what does this all mean for Zimbabwe. Is there a relationship between sports and economic development, in particular income growth and poverty alleviation or is sport a weekend pastime for Zimbabwe’s largely unemployed youth as they get manipulated to justify Parliamentary funding for Zimbabwe’s political parties?

In Europe and most developed countries, sports are increasingly important to the economy. About 2 million people are employed in the sports economy in the 15 member countries of the European Union – that is, 1.3 per cent of overall EU employment. And the sports economy is growing. In Europe, in the early 1970s, the ratio of overall sport expenditures (for goods and services) to GDP was around 0.5 per cent. In 1990, the ratio ranged between 1 and 1.5 per cent of GDP in most European countries (Andreff and Szymanski, 2006). In the UK, the contribution of the sports economy to GDP is currently estimated at more than 2%. As a comparison: this is three times as high as the current contribution of agriculture to GDP in the UK.

In the Atlanta Games in 1996, the British team achieved one gold medal only and immediately reviewed its priorities, injecting a lot of its National Lottery funding into elite Olympic sports for the first time. The return on investment was almost instant. In the Sydney Games of 2000, Team GB won 11 golds - the first time Britain won more than 10 golds since the Antwerp Games in 1920 - and 28 medals in total. Athens in 2004 saw a similar return, the last games before the Olympic Committee awarded the 2012 games to London. Investment in Olympic sports in the UK immediately rocketed in preparation for the country's first games since 1948, and again the return was both immediate and spectacular - the British team won 19 golds and 47 medals in total in Beijing in 2008 and 29 golds and 65 medals in all in the London 2012 Olympics. In essence, the Lottery accounted for about 60% of funding for GB's Olympic teams' preparation for the London Games with almost 40% coming directly from the UK government

Comparable and representative data on the economic value of sports in Zimbabwe are not readily available, including most developing countries. In this paper we focus therefore on two specific issues which seem particularly relevant for the impact of economic development. The first is the impact of sports/infrastructure investments on development; the second is about migration of sports players and development. Sadly for Zimbabwean sport, it is at the mercy of individuals which has seen Cuthbert Dube (Zifa President) using his personal house to guarantee debts for the National Team to participate in national tournaments. National institutions should never be the personal responsibility of individuals because firstly, it is beyond their capacity and mandate and secondly, their actions will not be in the interests of the nation or the development of sport ultimately. Kenya’s gold medal winners emerged from the remote parts of Kenya with no modern training facilities apart from dusty and bumpy strip roads. The focus in Zimbabwe has been to focus on urban cities as catchment areas with athletics relegated to mining towns which have since become ghost towns with lots of talent being put to waste whilst Zimbabwe's unemployment rate exceeds 80%.

Zimbabwe has ridden at the back of Kirsty Coventry for all its haul of Olympic gold medals and a dysfunctional and non-existent youth sports development and funding is failing a generation of otherwise talented youth people with potential. The exodus of Zimbabweans into the Diaspora since 2000 has seen a new generation of Zimbabweans emerging with a lot of talent and expertise that has been developed using state of the art facilities and a pool of professional coaches and sporting experts. The Sports and Recreation Commission should be at the epi-centre of enticing and tapping into this talent pool to leverage on sports development. At the London meeting with the Zimbabwean Diasporas during the London Olympics, Senator David Coltart had the opportunity to meet and interact with some of this abundant talent such as Stanley Madiri. Stanley is a successful and experienced athletics coach both in Zimbabwe and the UK. Stanley Madiri currently coaches Christina Ohurugu, 400m athlete who achieved a gold in Beijing and a silver in the London games representing team GB in the Olympics. He is also behind British 200m champion Desiree Henrys and Jodie Williams, world junior champion who won gold in the 100m and silver in the 200min Canada 2011.

The London meeting recommended the setting up of an entity to support development of sports and education in Zimbabwe which taps into the Diaspora market. The issue of dual citizenship is key to the development of sports which integrates the global nature of Zimbabwean talent which also needs to be reviewed ahead of other outdated considerations being proposed. Other African nationals are already showing a keen interest in this model, but Zimbabwe needs a coherent national drive to pursue this model with the global context of its nationals and learning from other countries dominated by migrant populations such as Jamaica, Nigeria, Cameroon and Ghana who have a lot of players plying their trade in the elite sports abroad such as football, basketball and athletics. The next Olympics will be held in Rio, Brazil in 2016 and a blue print of what sports to focus on needs to be developed and a clear strategic plan adopted. The idea of creating a Sports Lottery fund to directly support medal potential sports and athletes is worth pursuing and for priorities of the government to be reviewed to support aspirations of young people and prosperity of the nation as a long term strategy. Jamaica focused on athletics and they are now riding on this success crest which we can learn from, being a smaller nation like Zimbabwe.

Joshua Chigwangwa

MY CLOSING BELL: CNBC.com Million Dollar Portfolio Challenge Top Traders Board

2011-09-24T14:23:00.019+01:00

The CNBC Portfolio challenge closed its curtains in the first week of December 2011. As at the close of the challenge, my best performing Portfolio was ranked 82 in the UK and 4 621 on the Global Rankings as defined on the CNBC.com Million Dollar Portfolio Challenge Top Traders Board. This result is out of 372 000 participants with Poertfolio entries totalling about 700 000. Congratulations to 1st Prize Winner Gary Lewis, IL, USA and 2nd Prize winner Scott Cole, CA, USA. Gary Lewis walked away with a whooping US$1,000,000 and Scott Cole drove away in a 2012 Maserati GranTurismo Convertible Sport. Needless to say l was not pleased with my final outcome result becuase l had set a target for myself to be in the top 50 in the Global Rankings and at least in the top 20 in the UK. But this has underlined the adage that " Once an Alligator Always an Alligator and that Oil always floats above Water."

My major weakness was on the currencies were l performed dismally due to unfamiliarity on the trading platform, effective application of trading tools and the effects of volatility in the markets caused by the uncertainty in the Euro Zone and the weak strength of the US dollar which formed a major part of trading preference in the currencies. I have learnt that taking risks can be rewarding at times but can also be costly. In the markets, ounce you start trading, its akin to a day out fishing in the Lake, you have to keep reassuring yourself, checking your bait and trying different spots with the hope of attracting a big catch. It paid off initially but my preferred currencies performed dismally in november. This resulted in a knock down in my rankings and will hence be more cautious in the future. On the Equities side, my stocks performed very well which resulted in the most favourable outcome rankings. The risks l took in this challenge cannot be replicated in real live trading, to qoute the immediate remarks of Gary Lewis, the eventual winner, but admit that it has been a real life changing experience. It has taught me the predatory instinct in the markets and the power of inferential bets.

I have realised that when it comes to money, it's easy to become a little obsessed. This can be translated to the fantasy bonus payouts to Top Bankers. What on earth do you need a bonus payout of US$5 million for!This obsseion with such payouts without any corresponding productivity is mind boggling and perhaps alien! That's especially true in the money markets, which are now totally accessible on the iPhone, along with plenty of leverage, nearly 24 hours a day. When markets are volatile and anxiety is high, it's easy for our self-worth to become confused with our net worth. The danger comes when one starts internalizing emotions into trades, opting to "get back" at the market by doubling down or making irrational, all-or-none decisions at all. It becomes addictive and in essence, a trading platform becomes part of the mechanism functionalising the traders heart and circulation system.

Effective traders practice money management. The dirty little secret is that market results are a function of how you invest much more than what you invest in. From Internet stocks to oil, bull markets come and go with each passing season. The experienced trader maintains consistent initial position sizes and follows the golden rule of cutting losses and letting winners run in order to survive and prosper in any market environment.

For the Trading week ending 18th Nov 2011, my best performing Portfolio is ranked 62 in the UK and 4 843 on the Global Rankings as defined on the CNBC.com Million Dollar Portfolio Challenge Top Traders Board. This ranking goes up from last week's rating of 6 967, a % gain of 13,1% was achieved and this l am attributing to measures taken to turn around the Euro Zone crisis, particularly in Greece were a Technocratic led coalition has taken the reigns. Inflation figures released indicate a possible double dip recession in mid 2012, which has made the Markets volatile. The currencies have responded adversely against heated debate on the future of the EU and sudden resignation of the EU - IMF Chief Representaive, amid signs of EU debt crisis unravelling fissures in the French Economy.

Investors have flooded investments in Germany, a central tendency effect due to its dominance in the EU as the strongest economy. It is also clear the market no longer considers French government debt risk-free – despite its AAA rating. This makes sense, especially when you consider how heavily exposed French banks are to Italy. What is less obvious less obvious to many who are buying gold – is why German government debt is seen as such a safe haven. Yes, it offers a short-term bolt hole. Germany holds the Eurozone's checkbook, and it isn't going to let itself go under ahead of any other member.But surely, sooner or later, Germany will be on the hook for all this?

Virtually all markets saw strong double-digit growth in demand for gold bars and coins. Investment demand in Europe surged 135% due to the deepening sovereign debt crisis. Significantly, 390.5 tonnes of the 468.1 tonnes of investment demand went into physical bullion in the form of bars and coins.A huge and paradigm shift change in the gold market is central bank buying which rose 556% to 148.4T from 22.6T in Q3 last year. For the past 15 years there has been net selling of around 400 tonnes per annum from central banks.
The increase in overall investment demand was quiet impressive considering the higher average price in the quarter and the price correction in September but not surprising given the scale of the global economic crisis.

NOW WHAT DOES THIS ALL MEAN FOR ZIMBABWE AND AFRICA, WHAT ARE THE RIPPLE EFFECTS OF THIS CONTAGION? JOIN ME IN MY NEXT BLOG AS I INTROSPECT INTO THIS!!!

My Portfolio as of 11th Nov 2011 ranks 78 in the UK and 6 967 Globally on the CNBC.com Million Dollar Portfolio Challenge Top Traders Board. The change is due to uncertainty in the Greek leadership crisis, the unravelling debt crisis in Italy coupled with Berlusconi's decision to cling onto power.

My Portfolio as of 29th Sept 2011was ranked 11 564 down from the previous day's ranking of 7 434. The has been due to volatility in the markets caused by the need for the EU to raise 350 billion bond to bail out Greece and the much anticipated speech by Ed Milliband at the Labour Conference, The markets are expected to bounce back following the yes vote from the German Parliament and other EU member states. My other ranking previously was 34 274, a big jump from the other previuos day's ranking of 372,192 on the CNBC.com Million Dollar Portfolio Challenge Top Traders Board. My ranking is expected to go even higher tomorrow after bagging in another US$ 6 000 Bonus Bucks this morning!! Making Surfing the Net Make Cents!! I think l will soon be in the running for the top prize!!

My Portfolio as at end of business on 26th Sept 2011 ranked 372,192 on the CNBC.com Million Dollar Portfolio Challenge Top Traders Board. My ranking is expected to go even higher tomorrow after ending the day on a high note bagging in a whacking US$ 6 000 Bonus Bucks!!

WEEK ending 24th Sept 2011 MY PORTFOLIO RANKS 375,615 on the CNBC.com Million Dollar Portfolio Challenge Top Traders Board

What a challenging week for the markets! with fears of the last kick of the global financial crisis in the coming weeks Volatility continues to be the name of the game. My portfolio on this year's CNBC Challenge is a mix of equities, ETFs, currencies, and cash. On the equity side, my strategy is to focus on high yielding and performing companies on the London Stock Exchange with big names, given the short time horizon. l am impressed with the movement in gold prices and continually evaluating its potential as a hedge fund ! my experiences is urging me to be cautious and confident yet humble.So as this first week of trading in the competition l have been highly ranked with only 2 days of trading!! Wow !! and am optimistic to rise up to be among the top 100 000 in the coming fort night, there are still several weeks to go and l look forward to rising to the challenge! and who knows, maybe scoop the One Million US$ top prize fund. You too can do it, Making Surfung the Net Make Cents.

CNBC Million Dollar Portfolio Challenge milliondollar.cnbc.com

MERRY CHRISTMAS YO YOU ALL AND DONT DRINK AND DRIVE THIS FESTIVE PERIOD. !!

Is leadership the real challenge in africa or is it systematically being eroded by economic migration and lack of capital?

2011-09-16T13:17:00.001+01:00

Economic migration remains the single largest erosion of leadership from the continent, the potential to stay and make a difference is negated by the perception of ineffective leadership maximising on the ignorance of the majority.

The opportunities in Africa exceeds every other place on the planet, however without leaders the pockets of change will emerge but will not be sustainable unless lead by Africans. China,or India for that matter would not have emerged as fast growing economies without indigenous leaders within their civilizations.Every flight to major destinations of opportunity are filled with foreign players in search of opportunities, however the african experts stay away in the worlds major markets. Perhaps, a best practise example is about how India's success venture. India succeeded when a sizeable team moved to the Silicon Valley and acquired expertise and knowledge to build India's booming Call centre industry. It was a deliberate strategy to learn from best practise and transfer appropriate technology and expertise to make a global difference. Africa is inclined to replicate this by sending 52 teams to the Silicon, which makes it an exercise in futility.

Africa needs to refocus and up its game to compete with other continents in a more co-rdinated and structured approach as a Union. Its polarised into 52 countries just like a football team with strikers all eager to score a hat-trick. To fix it, there is need to improve governance systems to be more co-ordinated and less selfish or ego-centric. Pooling resources to create an African Bond which is applied to create an enabling enviroment for growth, more like the set-up of theUSA governance system and remove trade barriers within Africa and negotiating for a common currency to create a uniform economic system. For example, the bond can be used to finance projects such as the Cape to Cairo Motorway and Rail Link to facilitate infrastructural development that has potential for economic growth across the continent, creating jobs and industries in the process, Financing giant power generation projects in the DRC where it is ideal capable of meeting power demands for at least 15 to 20 countries in the current set-up. Wild life in Southern Africa is moving in this direction but it has to co-rdinated with other key services for it to succceed. For now its an uphill struggle more like pushing toothpaste back into its tube, but its clear, its either that approach or Africa will always lag behind and rely on foreign aid because its not utilising its resources and potential effectively. Other economies have reformed over periods dating back 400 years and it has not been an easy ride at all.

Africa has been dominated by Multi National Corporations such as De Beers, Anglo-American, BP Shell to name but a few, who have expanded their influence on the continent due to its abundant potential. Any shift from the status qou means a cut in the slice of the cake and obvious long term threat to viability. Perhaps this is more of a structural problem in that clustering itself (Africa) into smaller clusters or countries leading to duplication of efforts resulting in Africa developing at a dimishing rate, no matter how good the leadership is. Africa needs to block itself into a Union or Unions, remove internal barriers designed to outdo each other within Africa itself. It has to rationalise key services across the continent and not have each country trying to compete with the likes of say India, China or the USA. It has to take a leaf from the EU and tackle its challenges as a block,

ShareThis is Powering the Sharing Revolution!

2011-07-06T22:29:00.000+01:00

ShareThis is Powering the Sharing Revolution!

IDENTIFY THE VARIOUS FACTORS THAT HAVE PROMOTED THE GLOBALISATION OF BUSINESS?

2011-05-23T06:33:00.000+01:00

IDENTIFY THE VARIOUS FACTORS THAT HAVE PROMOTED THE GLOBALISATION OF BUSINESS?

The aim of this essay is to untangle the main factors that have promoted the globalization of business. In this essay, l will attempt to define globalization and to discuss the theory of international production including the various factors that have promoted the globalisation of business. I will conclude that the factors that have promoted the globalization of business so far as the technological changes that have occurred, the paradigm shifts in ideologies, economic liberalisation policies and the effects of migration trends.
Globalisation is a phenomenon that gained popularity in the early 80’s and has shaped the structure of what the global village is this day. Stiglitz (2002) defines globalization as the closer integration of the countries and peoples of the world brought about by the enormous reduction of costs of transportation and communication, and the breaking down of artificial barriers to the flows of goods, services, capital, knowledge, and (to a lesser extent) people across borders. Wolf (2005) suggests that globalization is a long run process with powerful forces behind it. Hill (2009) argues that globalization refers to the shift toward a more integrated and interdependent world economy, citing the decline in barriers to the free flow of goods, services and capital since the end of World War II and the wave of technological change as key factors.

The eclectic theory of international production brings together three dimensions to the globalisation of business. The “why” approach which explains competencies that TNCs need in-order to penetrate foreign markets, the “where” approach that underpins the location theory. The location theory explains the notion that TNCs only invests in favourable markets in terms of optimum market size, tariff barriers, costs, skill intensity and investment incentives. The third dimension is the “how” approach which focuses on the internalisation theory. It explains why TNCs opt to maintain control of key functions and what to outsource in these markets (Alderson, 2004). Alderson (2004) in summary argues that TNCs will relocate if and when ownership and location conditions are in its favour and it is in the interest of the TNC to internalise in the global markets. The following are the factors that have promoted global business within the context of this theory.

Technological change is the first factor that has promoted the globalization of business through advances in information technology, communications and transportation logistics. Hill (2009) argues that technological changes since World War II have transformed the global audience through leading to the emergence of the World Wide Web and the creation of the global village through advances in transportation logistic. This resulted in the development and popularization of mass media and communication technologies such as cell phones, credit cards and e-commerce which has transformed the way we do business today (Totir et al, 2011).

Advances in transportation logistics have been pivotal to the development of commercial jet aircraft, super freighters including the concept of containerization which significantly lowered costs and transformed transportation logistics (Hill, 2009). Technology has had a causal effect on the emergence of new process industries as well as the demand for more complex technical skills (Nascia, 2009). It has facilitated information and knowledge gathering techniques (Arnheiter, 2010). Developments in technology has resulted in the globalization of production, financial markets, transnational institutions and the unfolding shifts in demographic patterns of the global economy (Dickens, 2009).

James (2001) argues that countries that have embraced technological changes such as India and Japan became more competitive in foreign markets (James, 2001). The World Bank report (2010) on world development indicators from 1960 to date summarizes that technological advances have led a cumulative causation in the global economy linked to economic growth, improved standards of living and poverty reduction in developing countries. The Indian industry has in the last two decades proactively responded to market demands due to the introduction and effective application of new technological capability (Krishnan, 2010).

The shift in ideology is the second factor which facilitated globalization of business. The shift from the traditional conception of sovereignty based on nation states and governments as the supreme and ultimate authority in a society accelerated after 1980 (Eroglu, 2010). The privilege to engage in global business shifted to international institutions, transnational corporations and individuals. The geo-economic shift of centrally planned economies to transitional economies was another significant factor when more than 30 countries from the former Soviet Union shifted towards market based systems (Hill, 2009). The Uruguay Round finalized in 1993 adopted key deregulation measures culminating with the formation of World Trade Organisation to institutionalise and internationalise global trading systems (Hill, 2009).

More significant ideology shift by China, other states in Southeast Asia and Latin America continue to move progressively towards greater free market reforms (Hill, 2009). Hoare (2008) argues that since China set about reforming its economy a decade ago, its economy has continued to grow at the rate of 9,5% per annum. The fall of the Berlin Wall and the completion of the European Single Market in 1992 eased trade and investment between countries in the EU as markets were opened (Dickens, 2010).

The third factor that facilitated globalization is the economic liberalization of global financial markets, privatization and foreign direct investment (FDI). This was facilitated by policy prescriptions from the International Monetary Fund (IMF) which forced governments through liberalization and privatization to relinquish control of economic policy instruments (Eroglu, 2010). The OLI framework developed by John Dunning (1977, 1981) is one of the models of foreign direct investment which guided TNCs to decide which markets to operate in (Barbra-Navaretti et al, 2004). FDI promoted free trade which allowed workers in poor countries to get a living wage and helped alleviate global disparities in income and life chances (Sort, 2001).

Demand for Foreign Direct Investment has grown largely due to privatisation measures and deregulation of the financial markets. Over the past decade FDI flows into India have averaged around 0.5% of GDP against 5% for China and 5.5% for Brazil. FDI inflows to China now exceed US $ 50 billion annually. It is only US $ 4billion in the case of India (Goyal, 2006). TNCs also developed social networks and a global network of knowledge workers (Hill, 2009) which facilitated the development of value chain production networks such as Dell and Air Bus.

Restructuring of Hong Kong’s banking industry contributed positively to regional economic development by channelling funds from outside the region to countries in the East Asia Pacific region (Arestis, 2001). The World Bank (2006) annual report argues that ounce considered the periphery of the global economy; emerging economies are transforming to become the main drivers in the global economy (World Bank, 2006). China has since surpassed Japan in 2010 to become the world’s second-largest economy, capping the China’s three- decade rise from Communist isolation to an emerging superpower (Bloomberg News, 2010).

The other factor that promoted globalisation of business is the increased demand for labour migration across borders in response to shifts in global patterns. Economic liberalisation policies caused disparities in skill intensity which precipitated the increased demand for foreign labour (Taran et al, 2003). Migration is a key factor which has been linked to globalisation (OECD, 2000). Wickham et al (2008) argues that rapid expansion of high-technology industries in Ireland in the 1990s lead to a shortage of suitable labour resulting in mass migration and the recruitment of migrants an integral of Ireland’s human resources strategy. However, despite advances in the globalisation of business, migration remains a volatile issue with many countries opting to impose restrictive policies and as a result in the policies on migration lagging behind on the global arena.

This essay explored the main factors that have since promoted the globalisation of business. It looked at the theory of international trade and how it has facilitated the policy on globalisation to support the emergence of TNCs. The essay concludes that globalisation of business has been mainly spurred by technological changes particularly in the digital era, shifts in global ideologies particularly the former soviet bloc countries and the China’s shift from a command economy towards market based reforms. Economic liberalisation policies and foreign direct investment drives led by the International Monetary Fund (IMF) and the global migration trends which have facilitated human skills development and capacity to drive these reforms.
BOOKS
Barba-Navaretti, G.Venables, A.J. Barry, F. Ekholm, K. Falzoni, A. Haaland, J. Midelfart, J-H. Turrini, A. (2004) Multinational firms in the world economy: The Multinational Enterprise:
An overview of theory and empirical findings.
Dickens, P. (2010) Global shift: Mapping the changing contours of the world map. Sage.
Hill, C.W.L. (2009) International Business: Competing in the Global Market Place. McGraw
Joseph E. Stiglitz, Globalization and Its Discontents (New York: Norton & Company, 2002)
Organisation for Economic Co-operation and development (2000) Globalisation, Migration and Development. OECD Publishing 2000.
Short, J.R. (2001) Global Dimensions: Space, Place and the Contemporary World.
JOURNALS
Alderson, A.S. (2004) Explaining the Upswing in Direct Investment: A Test of Mainstream and Heterodox Theories of Globalisation. Source: Social Forces.
Arestis, P. Demetriades, P. & Fattouh, B. (2001). Financial liberalization and the globalization of financial services. Two lessons from the East Asian experience. Source: Regionalism & Globalisation; p223-241.

Arnheiter, E.D. Maleyeff, J. Venkateswaran, V. (2010) Lean Six Sigma for the 21st Century. Source: Proceedings for the Northeast Region Decision Sciences Institute (NEDSI). Information technology, cumulative causation and patterns of globalization in the third world. Review of International Political Economy 8:1 p 147-162.
Bloomberg News (Aug, 2010) China Overtakes Japan as World's Second-Biggest Economy
http://www.bloomberg.com/news/2010-08-16/china-economy-passes-japan-s-in-second-quarter-capping-three-decade-rise.html Accessed 10/03/ 2011.

Eroglu, N. (2010) The Effects of Financial Globalization on Economic Policies. Source: International Research Journal of Finance and Economics, ISSN 1450-2887 Issue 47

Goyal, K.A. (2006) Impact of Globalization on Developing Countries: (With special reference to India). ISSN 1450-2887 Issue 5; http://www.eurojournals.com/finance.htm

Krishnan, T.N. (2010) Technological Change & Employment Relations in India. Source: India Journal of Industrial Relations.

Petrescu, C.E.M. Jola, R. Hurduzeu, G. Vlad, L.B. (2011) Foreign Direct Investments
Expansion-Essential Globalisation Factor: Theoretical and Applied Economics Vol. XVIII
1(554), pp. 163-172
Nascia, L. Pianta, M. (2009) Forces of Inequality? The Impact of Technology and Globalisation. Source: Intereconomics.

Taran, P. Geromini, E. Globalisation, Labour and Migration: Protection is paramount: ILO.

Wickham, J. Bruff, I. (2008) Skills shortages are not always what they: migration and the Irish software industry. Source: New Technology, Work and Employment 23:1-2

World Bank (2010) World Bank Economic Indicators: Working for a world free of poverty: World Bank Publication.
http://data.worldbank.org/indicator Accessed 15/ 03/ 2011.

ABOUT JOSHUA CHIGWANGWA KARUMAZONDO

2010-10-13T14:26:00.001+01:00

Joshua is a co-founder and director of a new UK based start up ESBM-Hub (https://esbm-hub.co.uk/) which focuses on building project management skills and development for small businesses and entrepreneurs. Josh has a unique performance leadership reputation of consistency and delivering results on assigned projects, strong communication and interpersonal skills that are critical to project success working in teams and keeping stakeholders on board, always striving to exhibit precision in quality delivery on time and within budgets. A great asset in researching, planning and budget scheduling. According to Traci Schwarzenegger (2019), the most effective teamwork is nurtured when individuals harmonise their efforts and commit to work towards a common goal.

Josh was conferred a distinction and graduated with an MSc in Project Management in October 2019 and holds a BA (Hons) Admin degree both from the University of Hertfordshire. He also holds a Diploma in Public Sector Accounting from Harare Polytechnic and is a qualified member of the Association of Accounting Technicians in Zimbabwe (ZAAT). He currently works for Hertfordshire County Council as a Support Specialist since 2006. Prior to that he acquired commercial working experience with Ocado for 4 yrs as a Personal Shopper and worked for 10 years in the Public Sector in the Zimbabwe Public Service specialising in Local Government Finance and Management of Donor Funded programs with the Public Service Commission involving the Civil Service Reforms, Performance management systems and dynamics of culture change in the public service to be more responsive to the needs of the people. He holds several in-service competence training and development courses acquired over the years.

According to Raghupathy (2011) ethics and social responsibility adds a moral dimension to leadership qualities of project managers. Joshua has served his community as a Trustee of Welwyn Hatfield Ethnic Minorities Group (WHEM) between 2009 and 2010. He assisted in restructuring WHEM from a charity sustained on public donations to a company limited by guarantee capable of generating its own revenues to sustain its operations as Kaleidoscope Enterprises Ltd. Josh is a past director and Panelist’ in 2011 of the Zimbabwe Achievers Awards (UK) a philanthropy that seeks to identify outstanding Diaspora talent, innovations and creativity in a variety of genres.Visit http://www.zimachievers.com/uk/. He is a founder and technical strategist of the Zimbabwe Global Business and Political Issues social media networking group which seeks to nurture and develop budding entrepreneurs on LinkedIn and Facebook.

Started from the Bottom Now l am Here !!

With lovely daughters Vimbai and Gamu

Started from the Bottom Now l am Here !!

CONSTITUTION MAKING ROAD MAP: A CASE FOR ZIMBABWE

2010-01-09T01:52:00.000+00:00

OPINION - A review of Zimbabwe's Constitution is now being rolled calling for the participation of all Zimbabweans in crafting a historic document for the present and future generations. The controversies about the "Kariba Draft" appeared to have been watered down in the interests of progress.

Local and donor resources have been pledged to ensure the successful implementation of the consultation exercise in Zimbabwe in the next 65 days or so. The chairperson of the Commission indicated that consultations with people in the Diaspora will also be done and interest groups have shown willingness to fund the outreach to augment the initiatives of the State. It is estimated that at least 4 million Zimbabweans are residing abroad all over the World, and hence calls for the need to ensure a clear outreach strategy is adopted that will not disenfranchise the views of the majority of these Zimbabweans.

The challenges now are on Zimbabweans in the Diaspora to pool resources and to come up with effective strategies to popularise this historic event across the World so that as many Zimbabweans as possible participate. It may therefore be prudent to establish focal points which will be within reach of the Commission to consult and gather views given the resource constraints and finite time at its disposal. It will also be ideal for diverse representative groups to begin consulting their membership and to gather critical points of discussion which seek to harness talking points peculiar to the diaspora. I believe some accreditation criteria for such groups is agreed to present views on behalf of members given the sporadic settlement and distribution patterns of Zimbabweans across the world. This consultation should capture views from as many Zimbabweans in the diaspora as possible irrespective of immigration status. As such there should be a way of ensuring that undocumented migrants’ views are taken on board, as these may be crucial in ensuring the views of the worst case scenario are taken on board. How this is done, its the Zimbabwean people who needs to decide..

It is encouraging to note that the Commission acknowledges the apolitical status with which the consultation needs to pursue, as anything short of that will seriously undermine the objectivity of the views and how they will be considered for incorporation into a final draft. The need for members of this Commission to separate themselves from the partisan perspective in pursuit of this objective cannot be overemphasised, and only time will tell if they can withstand this objectivity test. Lessons from the 1999 consultation should be an easy guide on the current initiative to contain the tendency to digress to partisan platforms. Ethical standards and remedial measures needs to be in place to redress this issue should signs of it emerge.

In my earlier deliberation on this subject, I have emphasised on the need for government to separate itself from this exercise and to play a more facilitatory role in ensuring its successful implementation. Like l said, "if a constitution is the source from which government derives its existence and power, the government cannot logically create itself” Logically, a constitution cannot be the act of a government which is to be constituted by a non-existant constitution ; something as yet to be constituted (and therefore as yet non-existent) cannot act. Having said that, it is important to appreciate that in reality, there cannot be a power vacuum in government at any one time inorder to facilitate this role, hence it has to be tackled rather as a going concern, calling on the Constitutional Commission to display maturity, objectivity and professionalism in the conduct of its business. A transparent point of last resort, ideally invested in the Praesidium needs to be invoked strategically as well to guide the sticky and volatile moments in pursuit of a common goal. This task will be challenging given the fragile and skewed nature of the GPA consultations running concurrently with this consultation. The task for the GNU negotiators should be to tackle sticky issues including the media in a manner that does spill into the work of this Commission or influence its work in any way which may render its efforts futile.

My view is that this Constitution making process takes precedence on all other matters of governance as its successful implementation will ensure a stable and tolerant Zimbabwean society. A nation built on a firm and rocky foundation will not falter during trying times, and as such the constitution should be there to guide generations with a sense of pride and belonging. It should encompass Zimbabwe's cultural unique values and ethics that will enshrine sovereign and universal appeal. The question of legitimacy of the constitution is concerned with how to make it command the loyalty and confidence of the people, thus, it must be understood and be an acceptable product of the Zimbabwean people. It needs to be put through the process of popularisation with a view to generating public interest and participation in it and an attitude that everybody has a stake in it. The ultimate product from this process should represent the views and interests of the majority of Zimbabweans to make it legitimate and should guarantee the rights and freedoms universally perceived to be fundamental.

The height of challenges obviously are on how the issues of the rule of law, the property rights and freedoms of expression are formulated. For Zimbabweans abroad, this document should give them hope, inspiration and a source of national pride, which should resonate spiritually with Zimbabwe's national colours and anthem. The key issues of dual citizenship, governance philosophy and protection of property rights will feature prominently in the Diaspora.

The history of constitution-making in Zimbabwe has witnessed self-evident tension between the need to reach a broad-based consensus in the process of constitution-making on one hand advocated by the National Constitutional Assembly (NCA) including other civil society groups, and the need to ensure that the authority of the government is not undermined on the other hand. The subjective outlook of the modus operandi of a people driven constitution is appears to a trump card for the civil society. For all intents and purposes, ‘people-driven’ in this context, means involving key stakeholders in determining the points of consultation in the drafting of the constitution. Perhaps, civil society groups need to reflect on best practises globally, to appreciate that as Zimbabweans, we have a sovereign state to preserve and that the participative role of the Civil society will always be a complimentary role to the State. Perhaps, it may be the lack of this appreciative role that has generated mutual mistrust that has underpinned the constitution-making process that resulted in the rejection of Constitution in the 2000 referendum.

Civil Society ideally exist as a plethora of pressure groups which have evolved as a third sector in corporate governance to provide an independent opinion in governance matters. Ideally, it should an oversight in the independence and professional conduct of the Constitution making commission in the discharge of its functions, in regardless of whether it is as an independent body or not. The Commission should be guided by its terms of reference and ethical code of conduct,because ultimately, its not accountable to itself. It is accountable to the people through the machinery which sets it up, which is the government ultimately. It should provide the much desired checks and balances and perpetually probe this entire process so that the Commission discharges its role satisfactorily. It is critical that as far as possible this Commission be well resourced and be manned by a full -time Secretariat, contracted or seconded for this specific task and directly reporting to the Commission for the duration of the process, so that it does rely on the State to implement its obligations. The funding of this exercise by donors ideally creates this independence for the Commission which should not rely on the whims of the machinery of government to access resources.

It is vital fur us to take a leaf from constitutional reform experiences of other countries as part of a learning experience. The South African Constitution is widely regarded as one such document we may benefit from noting that it has unique situations almost similar to our background and history. I have discussed experiences from the Nepal's constitution-making road map which we may also draw lessons from, particularly in the areas of terms of office for the parliamentarians and the Praesidium.

In conclusion, it is vital for the final document to jealously guard the rights and freedoms of its citizens, to deal with issues of corruption which have eroded the social fabric, to strengthen the independence of the judiciary, create a rationalised bureaucracy which is optimum for the needs of our country, address the issues of economic confidence and poverty alleviation among other key issues. We need to appreciate that this constitution is no ordinary law to be modified or replaced by ordinary legislative processes. It must be perceived as a higher law, authorising and governing ordinary law, and commanding adherence to constitutional precepts. While ordinary law may be adopted and altered by legislative majorities of whatever size, the adoption of this constitution and its subsequent amendment should require much more widespread participation by the citizenry, and achieves broad-based consensus. Ultimately, this should render the referendum a formality, and only time will tell.

Josh Chigwangwa writes in his personal capacity. He is the Executive Secretary of the Zimbabwe Community Groups Initiatives UK and is a Business Management student at Hertfordshire University. He worked previously in the Zimbabwe Public Service for 10 years and supported implementation of the Civil Service Reform programme in Public Finance and Administration. He can be contacted on jmchigwangwa@hotmail.com

THE HOUSING MARKETS AND HOW THEY CONTRIBUTED TO THE GLOBAL ECONOMIC CRISIS ?

2009-12-05T09:29:00.001+00:00

"THE HOUSING MARKET IN THE US AND BRITAIN AND SUB-PRIME MORTGAGES INCLUDING THE ROLE OF SECURITASATION AND COLLATERALISED DEBT OBLIGATIONS "HOW THEY CONTRIBUTED TO THE GLOBAL ECONOMIC CRISIS?　

By Joshua Chigwangwa

The effects of the cold war have seen a new dimension in global politics and the unprecedented challenges in global co-operation and international trade leading to the historic collapse of global financial powerhouses and financial systems. The global economic crisis which began in 2007 has been linked to the rapid economic slump of major economies across the world. It suggests the crisis emanated from the Housing markets in the USA and rapidly spread to Great Britain and other parts of the World. The financial crisis of 2007-2009 has been called by leading economists the worst financial crisis since the one related to the Great Depression of the 1930s. The collapse of the global housing bubble, which peaked in the US in 2006, caused the values of securities tied to housing prices to plummet thereafter damaging financial institutions around the globe. Analysts argued and believed that the roots of the crisis could be traced directly to sub-prime lending by State entities, Fannie Mae and Freddie Mac, the US biggest underwriters of home loans among low and moderate income earners. Wikipedia also refers to Sub-prime lending as the credibility or quality of particular borrowers, who have weakened credit histories and are at greater risk of loan default than prime borrowers.

Bernanke (2009) argues that in the past 10 to 15 years, the United States and some other industrialised countries have been recipients of a great deal of foreign injections. He states that net inflows had peaked in 2006 to 1,5% of GDP, an amount equal to about US $825 billion, which resulted in a housing boom fuelled by a rapid expansion of poorly managed mortgage lending schemes. Lenders expected the house prices to continue to rise, thereby allowing borrowers to build up equity in their homes, simultaneously availing credit for refinancing easily. Regulators did not do enough to prevent poor lending, in part because loans were made by firms subject to little or no federal regulation. Banks and finance houses were lending mortgages at 5 to 10 times the annual incomes of people. They used aggressive terms and conditions without insisting on creditworthiness. Foreign investors who had invested in the real estate market in the US had to declare bankruptcy owing to massive losses. (Housing News, 2009)

Paul Krugman (2008) suggests, the housing bubble started when house prices started rising indiscriminately, as homebuyers took on mortgages they could not afford, fuelled by low interest rates and a departure from traditional banking practises which resulted in an upsurge in unsecured housing loans. Buyers were given loans requiring little or no down payment, and with no regard to creditworthiness, or ability to repay should the economy reset. He further argues that lenders came to believe that because of ever-rising home prices, borrowers in times of difficulty could either take out home equity loans to get more cash or just sell the home equity loan to pay off the mortgage. Robert J. Shiller (2008) also argues that the impact of the loose monetary policy was amplified by the large number of adjustable-rates mortgages issued after 2000, particularly to subprime borrowers. He suggests that these mortgages were more responsive than fixed-rate mortgages, to cuts induced by the US Federal Reserve, triggering a boom. Borrowers had high expectations of compensation from rapidly increasing house prices and were also thought to be able to permit them to refinance at even lower rates. 　

Paul Krugman (2008) further argues that Lenders were involved in speculative lending, as they did not hold on to loan portfolios, these were on-lent or sold on to ignorant investors, as part of Securitization. Wikipedia defines Securitisation as financial innovations in which banks essentially sell mortgages to homebuyers and distribute risk to investors through mortgage backed securities (Wikipedia, 2009b). This meant that those issuing mortgages were no longer required to hold them to maturity, by off-loading these to potential investors, allowing the banks to replenish their funds and thus enabling them to issue more loans and generating transaction fees. It is argued that this may have fuelled the bubble as it accelerated substantially prior to years leading to the crisis. Securitisation was pioneered by Fannie Mae, a State-sponsored lending agency and was traditionally confined to prime mortgages. Krugman suggests that financial innovation that made securitisation of subprime mortgages possible was the collateralised debt obligation, or CDO. CDOs offered shares in the payment from a pool of AAA rated mortgages, but saturated with dubious and unsecured mortgages. This fuelled large scale financing of subprime lending from many institutional investors, such as pension funds and local authorities, resulting in the overvaluation of housing by more than 50% prior to the crunch. In reality, this meant that properties purchased during the bubble, ended up with negative equity, triggering massive involuntary defaulting by borrowers and the collapse of the shadow banking system.　

Paul Mason (2009) suggests that this burst caused a sudden rush of speculative capital into commodities and hedge funds.ie the shadow banking system. The subsequent bursting of the commodities bubble resulted in the acute starvation in villages across the developing countries and political disorientation. Robert J. Shiller (2008) also argues that the rating agencies that pass judgement on securitized mortgages persisted in giving AAA ratings to mortgage securities that ultimately were vulnerable because they too believed that there would be no bursting of the bubble. Shiller attributes the crisis to the failure of regulators to rein in aggressive lending. He also argues that since the Depository Institutions Deregulatory and Monetary Control Act of 1980 effectively ended state usury laws, thus making it possible for Lenders to reap super profits with subprime lending by charging exorbitant interest rates to offset the costs of the inevitable defaults and foreclosures. 　

Thomas (2007) suggests that the UK was adversely affected and among major economies hit hardest, following market corrections in the US housing crisis and its impact on the global economy. A substantial number of UK companies had invested substantially in the US housing market and off-shore in Icelandic banks. The increase in mortgage defaults at the subprime end of the US market meant institutions that bought up large packages of these debts were forced to close or bail-out exposed funds. The Times-Online (2008), reports that the endemic fraud in the UK housing market also proliferated. This rampant practice led the Financial Services Authority to ban at least two mortgage brokers for submitting false applications to lenders. This followed over 200 complaints of mortgage fraud allegations by Lenders to the Financial Services Authority. 　

Green S. (2008) the HSBC Group Chairman issued a statement that the UK economy was experiencing the worst economic downturn in well over half a century. He argues that it marked the first crisis era of globalised securitisation and also marked the first just-in-time global economy as the impact of the financial crisis fed rapidly straight into the performance of the real economy. He attributes the cause of the crisis to the global financial imbalances that rose from the accelerating global shift towards emerging markets which had created a macro-economic triangle consisting of major consumer markets. Green argues that huge global savings were invested in US dollars, which kept rates low and cheap. This cheap money fuelled consumer boom and rising house prices, characterised by increased borrowing by banks and consumers, fuelling asset price bubbles in housing markets. The complexity of financial instruments had peaked beyond the capacity of experienced bankers leading to sloppy risk assessments. Finally, Green also suggests that it was the result of excessive and unchecked gearing, which resulted in over-gearing and hence dependence on wholesale funding. The eventual collapse resulted in banks crowded with assets they could neither sell nor fund, forcing huge losses on housing markets. 　

Fulcher (2009) argued that the bankruptcy of rock solid US financial Institutions such as Bear Stearns, Merrill Lynch and Lehman Brothers, Mortgage Finance corporations like Fannie Mae and Freddie Mac and Global Insurance giants such as AIG, signalled the collapse of the global finance systems. The crisis spread rapidly causing global financial panic. Banks became reluctant to lend to each other, sending liquidity shock waves through the whole economy. This hoarding of capital caused the financial system to freeze. In the UK, private sector financed capital projects came to a halt, causing despondency and spiralling unemployment. The Government was forced to rescue most of the projects as they are linked to the successful hosting of the 2012 London Olympics.　The extent of the impact of this crisis on the global economies meant that unprecedented and extraordinary responses were involuntarily required to find lasting solutions to the challenges. The US government was forced to bail out insurance giant AIG following the collapse of Lehman Brothers. The UK experienced the shock waves following the collapse of Northern Rock, forcing the bail out from Treasury to avert the collapse of the financial system. According to Sam Flemming (Daily mail 2009), the Bank of England pumped £200bn of fresh cash into financial markets and pegged rates at just 0,5% to prop up the economy. (The scale of this crisis unearthed serious flaws in the management and control of financial sectors in economies around the globe. The financial monitoring mechanisms failed to flush out the problem at its infancy stages, rendering them irrelevant and in need of major overhaul. The risk management and assessment mechanisms, including stress tests which needed reforming to address the challenges emanating from adverse outcome. Adair Turner (Mail Online, 2009) Chairman of the UK Financial Services Authority suggested that banks that are too big to fail may need stricter capital requirements than smaller rivals and was also broadly in favour of the EU proposals to tighten financial supervision across the continent.　

The overview of the global financial crisis has led Analysts, Experts and governments introspecting on the broad concept of global capitalism, as a leading philosophy in driving International trade as well as global financial reforms. Fulcher (2009) suggests that the capitalist world economy’s failures have led some to suggest that the capitalist system may be in danger of collapsing. He however, argues that the history of capitalism is littered with episodes of financial crises and economic depressions. He suggests that the complex global environment will always characterise capitalism and will continue to do so. He also suggests that global reforms require an engagement with capitalism because of its global dominance. China’s entry to the capitalist world economy, with its huge reserves of cheap labour and substitutes, has transformed global financial trade and emboldened the dominance of capitalism. Mason (2009) suggests that the challenges of finding a better model always confront us during periods of recession and financial crises. 　

Policy makers need to draw important lessons from this crisis and take bold measures to reform the global financial systems, adopt effective intelligence models and monitoring mechanisms. The need to reign in laws and sound operational global co-operation to ensure compliance is as vital as dealing with a crisis ounce it has kicked off. The ripple effects of a global financial crisis affect across nations and require global interaction and solutions for it to be effective. The initiatives taken by the G20 Nations to find lasting solutions to the crisis are commendable. (Guardian Online News 2009) US President Barrack Obama, in his speech on financial regulation, recommended a raft of measures aimed at address the challenges of the global financial crisis. He announced the setting up of the Consumer Protection Agency to act as a consumer scrutiny and strengthening of financial monitoring mechanisms. (G-20.org On-line News 2009) The G-20 communiqué further details the G-20 Framework designed to manage the transition from crisis response to stronger, more sustainable and balanced growth for global financial systems with close co-operation with the IMF, World Bank and key agencies such as the Financial Services Board. The G-20 also viewed as critical, the need to have co-operation from both developing and developed countries in adopting common approaches to tackling the crisis as well as positively reviewing capacity building mechanisms to support the efforts of developing countries.　

Bibliography

Brummer A. (2009) The Crunch. How greed and incompetence sparked the credit crisis: London, Random House Business Books.

Fulcher, J. (2009) Capitalism: A Very Short Introduction: Oxford: University Press.Krugman, P. (2008) The Return of depression Economics and the crisis of 2008: London: Penguin Books.

Shiller, R.J. (2008) The Subprime Solution. How Today’s Global Financial Crisis Happened, and What to Do about it: Oxford, UK: Princeton University Press.

Mason, P. (2009) Meltdown: The end of the age of greed. London: Verso.　

External links and further reading　

Ben S. Bernanke (2009) Chairman’s speech at the Morehouse College, Atlanta, Georgia.14 April. Available at: http://www.federalreserve.gov/newsevents/speech/bernanke20090414a.htm. Accessed on 14/11/2009.

Financial Times (2007) Equity income hit by fallout from US housing crisis. Available at: http://www.ft.com/cms/s/2/c7baea48-57e2-11dc-8c65-0000779fd2ac.html Accessed on 21/11/2009.

Housing News Live (2009) Housing News [Online] Housing Market Crush in US. Available at: http://www.housingnewslive.com/housing-market crush-in-us.php. Accessed on 2009/11/12.

HSBC Annual Review (2008) Group Chairman’s Statement. Available at: http://www.2008.annualreview.hsbc.com/chairman_statement/index.html Accessed on 21/11/2009.

The Times Online (2008) UK housing market close to collapse. Available at: http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article3406268.ece Accessed on 21/11/2009

IMAGE: Predicting the Global economic crisis forecastingnet.com

Wikipedia, the free encyclopaedia (2009a) Financial crisis of 2007-2009. Available at: http://en.wikipedia.org/wiki/Financial_crisis_of_2007_&_2009. Accessed on 2009-11-14

Wikipedia, the free encyclopaedia (2009b) Financial crisis of 2007-2009. Available at: http://en.wikipedia.org/wiki/Financial_crisis_of_2007_&_2009. Accessed on 2009/11/14.

Wikipedia, the free encyclopaedia (2009c) Financial crisis of 2007-2009. Available at: http://en.wikipedia.org/wiki/Financial_crisis_of_2007_&_2009. Accessed on 2009/11/14. h

http://www.dailymail.co.uk/money/article-1194171/FSA-head-Adair-Turner-says-biggest-banks-face-tougher-regulation.html Accessed on 23/11/2009

http://www.guardian.co.uk/business/2009/sep/14/obama-speech-regulation-wall-street Accessed on 23/11/2009

http://www.g20.org/Documents/2009_communique_standrews.pdf Accessed on 24/11/2009.

FUNDAMENTALS OF CONSTITUTION-MAKING IN ZIMBABWE

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The Fundamentals of Constitution-Making: A Case for Zimbabwe

Published on: 27th July, 2009

By Josh Chigwangwa

A written constitution is something separate from and antecedent to government, something to be consciously framed as an act of deliberate choice and creation, which raises a question as to who has the right and the power to frame and approve it – the people or the government.
Obviously, if a constitution is the source from which government derives its existence and power, the government cannot logically make it; government cannot create itself. The constitution cannot be the act of a government which is to be constituted by the constitution;something as yet to be constituted (and therefore as yet non-existent) cannot act.This becomes the focus source of friction in the process.

The focus of debate is to investigate the root causes of this instability in constitution making processes. The question of legitimacy of the constitution is concerned with how to make a constitution command the loyalty and confidence of the people. In order for a constitution to command the loyalty and confidence of the people, the constitution must be understood and acceptable to the people.

To achieve this understanding and acceptance a constitution needs to be put through a process of popularisation with a view to generating public interest in it and an attitude that everybody has a stake in it. The aim of the constitution-making process is therefore the achievement of a constitution that is legitimate,that guarantees rights and freedoms perceived to be fundamental, and that provides a structure for the effective conduct of the nation’s business for the achievement of its economic development and for the welfare of its citizens. The height of challenges obviously are on how the issues of the rule of law, the property rights and freedoms of expession are formulated.

Appreciated, the constitution is no ordinarylaw to be modified or replaced by ordinary legislative processes. It must be perceived as a higher law, authorising and governing ordinary law, and commanding adherence to constitutional precepts. While ordinarylaw may be adopted and altered by legislative majorities of whatever size, the adoption of a constitution and its amendment require much more widespread participation by the citizenry, and the achievement of a broad-based consensus. The history of constitution-making in Zimbabwe has witnessed self-evident tension between the need to reach a broad-based consensus on the process of constitution-making on one hand advocated by the National Constitutional Aseembly (NCA), and the need to ensure that the authority of the government is not undermined on the other hand.
For all intents and purposes, ‘people-driven’ means involving all key stakeholders in determining the content of the draft constitution.

Experience has demonstrated that there is mutual mistrust that has underpinned the constitution-making process between the citizens and the government on the one hand and between the NCA and the State on the other hand. This resulted in the rejection in the 2000 referendum and subsequent episodes of stalemates being witnessed with the current process.
The process needs to be created under conditions which provides for checks and balances in terms of the composition and independence of the Constitution – Making Assembly on the one hand, and a particpatory process on the drafting of the Working Document. It is critical that as far as possible that this Assembly be well resourced and be manned by a full -time Secretariat,contracted or seconded forthis specific task and directly reporting to this Assembly for the duratiion of the process.

For all intents and purposes, or tend to agree with argumenst from other commentaries that 'people driven' means involving all key stakeholders in determining the content of the draft. The just ended dramatic All stakeholders conference adopted 16 thematic areas as a basis of defining the broad layout of the envisaged constitution. The process will assume greater relevance if the thematic sub-committes transverse the length and breadth of Zimbabwe, including reaching out to Zimbabweans in the Diaspora, gathering their wishes and aspirations without political interference and intimidation. This will make the process acceptable to the majority of the populace, rendering the Referendum a formality.

It is also important to take a leaf from constitutional experiences of other countries as part of a learning experience. The South African Constitution is widely regarded as one such document we may benefit from noting that it has unique situations almost similar to our background and history. I have discussed experiences from the Nepal's constitution-making road map which we may akso draw lessons from, particularly in the areas of terms of office for the parliamentarians and the presidium.

In conclusion, it is vital for the final document to jealously guard the rights and freedoms of its citizens, to deal with issues of corruption which have eroded the social fabric, to stregthen the independence of the judiciary, create a rationalised bureacracy and Executive which is optimum for the needs of our country and to address the issues of economic confidence and poverty alleviation among other key issues.

WHAT IS DEVELOPMENT AID ?

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I think what is required in the first instance is to define Development Aid and identify its proponents and sources. Aid is a broad area as a strategy in tackling sustainability in both developed (DCs’) and developing countries.(LDC’s)

For DCs, it may be a strategy to create an enabling enviroment to meet projected shortalls in the sustainabilty needs and mitigation measures for containment of epidedemics. Hence Aid is tied to conditions and obligations to implement and monitor project implementation. For example, the development of the lower Zambezi Valley was linked to seisimic studies that seemed to suggest that they may be oil and Uranium deposits in the Valley. This has been uninhabited over 1000s of years with known existence of elephants, buffalo herd ,tigers and giraffes among other natural habitats. Although it was linked to creation for land for resettlement, this is flood plain which may not have sustainability to effects of global warming.

A substantial amount of development aid is committed to provision of technical expertise and equipment, hence the notion that it is tied. This is always a precondition because it also becomes a vehicle to provide employment , research and a stimulus package for the DCs. This is ultimately linked to the GDP and becomes the fundamental underlying principles of Development Aid. Hence, Thomas Mapumo’s song with lines such as “Something for something and Nothing for nothing,” quickly resonates with the people.

For LDCs, the scope for initiating development to satisfy local needs is clear, but is constantly frustrated due to lack of technical expertise, equipment and of course resources.There has been a lot done to develop capacity and the effect brain drain has derailled continuity and unstable governance issues have been retrogrogrressive.This has contributed to high dependence on DCs hence the anathema high debt and declining ability to service debt aid.