Networking to Promote Zimbabwe Exports

Start a business while still on employment

2012-01-11T10:44:00.000+02:00

Anyone can start a business. What's tough is starting a successful business. That's why, if you hate your current job, the best way to start a business is to keep your full-time job, maybe for years. Staying employed is, except in rare cases, the best way to dip a toe in the entrepreneurial waters.

Sure, that approach requires a tremendous amount of hard work, discipline, and sacrifice. But those are the same qualities you'll need to succeed as an entrepreneur, whether you quit your job or not. Almost every successful business was built by an owner who worked incredibly, almost impossibly, hard.

Here's how to start a business while keeping your full-time job:

1. Go lean. Most businesses spend money before they make money, and some go years before revenue exceeds expenses. No matter how much money you have in personal savings, it probably won't be enough. Cut family expenses to the bone. Eliminate all personal spending that is not absolutely necessary. Start-ups often fail due to a lack of money. Besides, a lack of funds can drive you to make poor decisions for the long term. Cash creates options and freedom, especially the freedom to make the best decisions.

2. Be a superstar at work. You must continue to perform well at your job; lose it, lose everything. Yet you also need to spend time on your new business. The solution? Work incredibly hard at your job. Get as much done as you can within normal work hours. Eat at your desk. Be the outstanding employee who never has to stay late because she gets everything done during regular work hours. Time is your most precious commodity. Don't waste a second.

3. Create a challenging work schedule. When you leave work, your workday is just starting because then it's startup time. Decide how many hours you think you can spend. Then add more. Then commit to that schedule. Don't just plan to work a certain number of hours; schedule those hours. When your schedule calls for you to work on your business from 7 pm to 11 pm during the week and from 7 am to 4 pm on weekends, do it. Work your business schedule like it's your job.

4. Never whine about your challenging work schedule. This may be the second-hardest step. Say you start a consulting business: Land a number of clients, and every night and evening will be tied up. (Of course, that's a good thing.) Meeting with clients may be difficult if they're in other time zones, so you might have to find creative ways to deliver your service. Rarely will you get to choose your work hours. Customers will choose your work hours for you. That's just how it goes. If you don't accept that fact, you won't be successful or might be tempted to quit your job long before you should.

5. Don't spend profits. Reinvest your profits. Use earnings to set up the business infrastructure you need. Buy equipment and supplies. Advertise. Grow your business. Every dollar you spend should further establish your business. Cash creates options.

6. Wait longer than you want to quit your full-time job. Deciding when to quit your job and go into business full-time is the hardest decision you will make, especially when you're tired, you're stressed, you're sick of your full-time job, and you want your real life back. Stay the course. Quit too soon and you'll regret it. Stay logical and focus on numbers rather than emotions. Don't listen to your feelings, especially late at night. Listen to your business. Your business will tell you when it's time to quit.

Source: Jeff Haden CBN News http://www.cbsnews.com/

Mitigating the effects of HIV on SMEs

2010-09-23T13:01:00.001+02:00

Impact of HIV/AIDS on SMEs

Whenever the matters of business advisory services given to SMEs are talked about, they are mainly centred on business management principles. No much importance is attached to the healthy issues, particularly HIV/AIDS, which have equally devastating effects on the operations of SMEs. A study of 209 small businesses by the University of Port Elizabeth identified HIV/AIDS as one of the three main factors that cause nearly 80% of South African start up SMEs to fail every year. Surprisingly, according to the report by Business Action for Africa, the majority of companies operating in Africa, in particular SMEs (who employ a large proportion of the workforce) have no HIV/AIDS programme in place, despite the clear need for them to safeguard a healthy workforce and enjoy long term success. HIV/AIDS has more devastating effects on SMEs than on big companies as the critical SME staff members (the owner, that honest driver, that innovative manager and that receptionist who plays multiple roles etc) are often lost to HIV/AIDS. If a HIV-positive forklift driver is sick, 20 other people slow down. Production can even grind to a halt if it is really a critical part of the SME team. HIV/AIDS increases funerals, death benefits and other expenses, recruitment costs as well as causing operational disruptions through increased absenteeism, higher labour turnover and loss of experienced personnel. Most SMEs’ operations are anchored on the support of families; when the same relatives are sick, all the extra business funds are channeled towards taking care of them, thereby indirectly affecting the financial position of the small institutions.

Why is such an important aspect often overlooked? What should SMEs do to avoid and mitigate the effects of the disease?

Most SME HIV/AIDS responses start and end with simple awareness or prevention activities like the distribution of condoms and awareness materials and this is not enough! There are many reasons for the lack of action. A first challenge for SMEs is developing an appropriate program for the size of the company. Secondly, a survey of 80 SMEs in South Africa found that 42% did not actively partake in dealing with HIV because they did not expect HIV/AIDS to impact their operations. The third reason is that there is also lack of information on HIV/AIDS amongst SME managers/owners to enable them to deal with the virus. Lastly and more importantly, there is generally lack of pressure among SME, government and donors to act on this matter.

It has to be acknowledged that SMEs may not adopt healthy policies which resemble what big corporates have in place. However, the important fact remains; SMEs employ majority of the population in developing countries, making it necessary and a worthy cause to fight HIV from the domains of SMEs. Donor community and Government are quite active in educating every citizen, through public media, about HIV and AIDS but the support structures lack in the SMEs, where most of the working class spend more time. In big corporates, the induction contains the HIV educational material and in some cases that companies have comprehensive HIV prevention and management programmes. In contrast, among SMEs, there is little concern about what happens to the workers as long as they still turn up for work every day. For instances, SMEs hire drivers for cross border transport operations without educating them internally; the same drivers fall prey to the vagaries of commercial sex workers along the route and at the border posts.

Taking Action to Implementing HIV/AIDS Programme

IFC advises that in order to adopt a good HIV/AIDS programme, the management of the SME should do the following: -

Draft company HIV/AIDS policy statement
Adopt the policy
Promote the company policy
Establish an HIV/AIDS committee
Select a focal point/coordinator

Provide information and referrals to locally offered services
Select a service provider to assist with implementation
Craft an HIV/AIDS action plan for specific interventions with time frames
Contact public health facilities for free condoms

Contact local government to access information on community and public health resources
Survey employees knowledge of HIV/AIDS
Target prevention messages to dispel myths
Launch a company HIV/AIDS slogan

Make awareness materials available in the workplace…e.g. display posters
Have a group of employee volunteers

Important Notes in Implementation

1. SMEs management should appeal to local clinics/NGOs for some free HIV workshops for their small staff compliment. It is worthy it to stop work for few hours of the working day to save at least one life rather than to be obsessed by drive to make short term profit at the expense of long-term benefits. Where clinics may not be forthcoming it is necessary to help get help from any resourceful outsider to run at least a short HIV/AIDS Peer education programme for staff.

2. The SMEs staff should be encouraged at institution level to get tested for HIV and get timely medical attention for a prolonged life.

3. The staff working for SMEs should be given resources to support the fight for HIV; time is a very important resource with is quite constrained given the long hours which SME staff tend to pull. They should be given time to be with their families, time for engaging to enhance their spiritual well-being through perhaps participating in church activities. They should have some leave days to participating in sports of their choice. If SME staff would have time for these aspects of life, it may assist in fighting HIV/AIDS.

4. There is an urgent need for the national government and NGOs to try to help small businesses become more proactively engaged in fighting HIV and AIDS more importantly in coming up with the best practice through which SMEs can implement comprehensive HIV/AIDS prevention, treatment and care programmes.

Conclusion

It is important to note that collaboration or partnerships play an integral role in HIV/AIDS mitigation efforts for SMEs, as collaboration assists in identifying resources in the wider community which can help avoid duplication and save companies both time and money. It is imperative that these SME businesses collaborate closely with the national governments and NGOs in order to support a form of welfare system for staff affected by HIV/AIDS.

Event Calendar for Upcoming Trade Shows in Zimbabwe 2010 & 2011

2010-09-14T14:40:00.001+02:00

Intershop

Date: 26 November 2010 to 27 November 2010

Intershop is an end of year showcase for all consumer products. Immediate sales can be made to a large pool of ready-to-buy public for the local and foreign market. Very ideal for product launches, cottage industries and established marketers in every type of consumer product from novelties to food. Local and foreign exhibitors can participate in this trade show, before the Christmas rush strikes. Find out more on this from the organiser, Zimbabwe International Trade Fair Company, Hillside Road, Famona, Zimbabwe, Tel: +263-9-884911, +263-9-884912-5, Fax: +263-9-884921 or email zitf@zitf.co.zw, zitfmktg@zitf.co.zw or visit website http://www.zitf.co.zw/.

Venue:

Zimbabwe

International Exhibition Centre, Bulawayo, Zimbabwe

Zimbabwe

International Trade Fair (ZITF 2011)

Date: 03 April 2011 to 07 April 2011

Zimbabwe International Trade Fair (ZITF 2011) is a multi-sector, multi-national trade exhibition. Participate in the growing markets of Africa by exhibiting at this fair which is central to Sub-Saharan Africa . Find out more on this from the organiser, Zimbabwe International Trade Fair Company, Hillside Road, Famona, Zimbabwe, Tel: +263-9-884911, +263-9-884912-5, Fax: +263-9-884921 or email zitf@zitf.co.zw, zitfmktg@zitf.co.zw or visit website http://www.zitf.co.zw/.

Venue:

Zimbabwe

International Exhibition Centre, Bulawayo, Zimbabwe

African Tour & Travel Expo (A’Sambeni 2011)

Date: 03 April 2011 to 07 April 2011

African Tour & Travel Expo (A’Sambeni 2011) is a tourism showcase (which runs concurrent with the main showcase, ZITF 2011) for sub-Saharan Africa: it is a country-neutral exhibition, not tied to any specific national tourist association. A'Sambeni 2011 is a full-scale, regional, info-rich tourism exhibition held in Zimbabwe which accommodates large and small operators and includes specialised suppliers to the tourism industry. The emphasis is on Adventure, Cultural and Eco-tourism. Find out more on this from the organiser, Zimbabwe International Trade Fair Company, Hillside Road, Famona, Zimbabwe, Tel: +263-9-884911, +263-9-884912-5, Fax: +263-9-884921 or email zitf@zitf.co.zw, zitfmktg@zitf.co.zw or visit website http://www.zitf.co.zw/.

Venue:

Zimbabwe

International Exhibition Centre, Bulawayo, Zimbabwe

Pakprint
Date: 03 April 2011 to 07 April 2011

Pakprint (which also runs concurrent with the main showcase, ZITF 2011) attracts exhibitors from the printing and packaging sectors and associated industries. The exhibition is meant for corporate buyers of printing and packaging equipment and accessories for enhancement of quality and visual presentation of their products and services. Find out more on this from the organiser, Zimbabwe International Trade Fair Company, Hillside Road, Famona, Zimbabwe, Tel: +263-9-884911, +263-9-884912-5, Fax: +263-9-884921 or email zitf@zitf.co.zw, zitfmktg@zitf.co.zw or visit website http://www.zitf.co.zw/.

Venue:

Zimbabwe

International Exhibition Centre, Bulawayo, Zimbabwe

Scholastica
Date: 03 April 2011 to 07 April 2011

Scholastica (which also runs concurrent with the main showcase, ZITF 2011) is Zimbabwe's only international education and training expo with products and services covering every aspect of the sector.. Exhibitors can display and demonstrate the latest technologies and developments in their speciliased areas. Find out more on this from the organiser, Zimbabwe International Trade Fair Company, Hillside Road, Famona, Zimbabwe, Tel: +263-9-884911, +263-9-884912-5, Fax: +263-9-884921 or email zitf@zitf.co.zw, zitfmktg@zitf.co.zw or visit website http://www.zitf.co.zw/.

Venue:

Zimbabwe

International Exhibition Centre, Bulawayo, Zimbabwe

Mine Entra

Date: 20 July 2011 to 22 July 2011

Mine Entra is a specialised international exhibition which caters for the mutually compatible sectors of mining, engineering and transport and their associated industries. Mid-year timing is for maximum convenience and corresponds to the industry's main buying and tendering period. The event is only open to traders and business visitors. Find out more on this from the organiser, Zimbabwe International Trade Fair Company, Hillside Road, Famona, Zimbabwe, Tel: +263-9-884911, +263-9-884912-5, Fax: +263-9-884921 or email zitf@zitf.co.zw, zitfmktg@zitf.co.zw or visit website http://www.zitf.co.zw/.

Venue:

Zimbabwe

International Exhibition Centre, Bulawayo, Zimbabwe

Harare Agricultural Show 2011

Date: 22 August 2011 to 27 August 2011

Harare Agricultural Show is an annual international exhibition which caters mainly for the agricultural sectors (i.e. agriculture, livestock & horticulture), commerce and industry. The mid-year timing is for maximum convenience to farmers and corresponds to the industry's main buying and tendering period. The event is only open to traders and business visitors. Stand preparation can start on 01 Aug 2011 until 21 August 2010 and dismantling should be done on 28 August 2010. Find out more on this from the organiser, Exhibition Park Harare, Zimbabwe, P.O. Box 442, Harare, Zimbabwe Phone: +263 (0)4/780963 Fax: +263 (0)4/780967.

Venue: Exhibition Park Harare, Zimbabwe

Sources of funding for SMEs in Zimbabwe

2010-08-05T09:21:00.000+02:00

While the specific sources of SME funding come and go, this article seems to keep the micro-institutions and SMEs aware of the antecedent institutions which are assisting funding for working capital and venture capital. The specific terms and conditions for such loans may be obtained from the institutions. I shall try to keep this page updated each time I get new information so the contents of this page do not become outdated. Here are some of the institutions who offer funding to SMEs and micro-institutions;

(a) MicroKing Finance

The institution supports micro-institutions (e.g. cross borders traders & vendors etc), SMEs and groups with working capital and order finance of minimum of USD140 and maximum of USD5,000 at an interest of 5.5% per month plus a once-off 5% loan administration fee payable upfront. The loans are secured by way of a pledge over business & household assets plus a guarantor. The tenor of the loans ranges from a minimum of 2 months for order/retail finance to a maximum of 6 for manufacturing and agriculture business. The qualifying businesses should be at least one year old (proven business record) – i.e. no venture capital. Contact email; city@kingdom.co.zw

Export of Scrap Metal & Removal of Import Duty on Solar Energy Products

2010-07-19T12:12:00.003+02:00

The most recently announced Mid-Term Budget Statement announced by Minister of Finance on 14 July 2010 opened some opportunities for Zimbabwean SMEs in the field of international trade.

Export of Scrap Metal

As you may remember from my previous article ‘Passports for Export’, all scrap metal exports from Zimbabwe were banned starting 1 August 2004 in order to promote their use in the local production.

On 14 July 2010, in the Mid-Term Budget Statement, the Minister of Finance announced that, with effect from 1 August 2010, scrap metal generated as a by-product of the production process shall be exempted from the aforementioned export ban. However, export licences of such scrap metal shall still be required and these are issued by the relevant Ministry on a case by case basis.

SMEs who have access to such scrap metal can now have a better business opportunity to export the by-product scrap metal to their clients. The SMEs should approach Ministry of Mines for the export licence of such scrap metal.

Removal of Import Duty on Solar Energy Products

In support of investment in solar energy, on 14 July 2010, in the Mid-Term Budget Statement, the Minister of Finance announced the removal of import duty customs duty on solar panels, inverters, batteries, regulators, geysers, lanterns, water pumps & heaters and energy saving bulbs with effect from 1 August 2010.

Some Zimbabwean SMEs may fall through World Cup cracks

2010-05-31T16:18:00.001+02:00

The glamour of the 2010 FIFA World Cup windfall for Zimbabwean SME businesses is likely to fall dramatically short of the expectations. Some SMEs, mostly those who export tourism services, may have borrowed some decent funds to renovate their accommodation, buy taxis and cars for hire, hoping tourists will flock the country and demand such services. From the onset, the Zimbabwean SMEs could have been aware that they would not benefit directly form the FIFA World Cup but hoping to cash in on some spill-over of FIFA world cup benefits. Now these spillovers may be too small for the kind of investments which could have been laid down. The fact is that many small businesses now stand to lose out as money spent on expansions and upgrades of hotels, lodges and restaurants may not be recouped during the month-long tournament Even in the hosting nation, South Africa, the hotel bookings are a little bit less than what was expected perhaps because the World Cup is coming in the wake of a global recession, among other reasons.

When faced with the reality of having sunk borrowed funds in anticipation of cashing in on World Cup spillovers, don’t despair. The first thing you need to do is to engage your Bank or the lender and explain the problem. Do not try to be elusive or difficult; rather engage the Bank management with constructive proposals to reschedule the repayment of the loan in line with what you may afford. The banking relationship has to be managed very well when your company is in financial distress.

Zimbabwean SMEs should not stay local

2010-05-27T14:53:00.002+02:00

Exporting of goods and services gives Zimbabwean small businesses better chances to reach new markets and increase sales, as well as opening up to more than 99.9% of the world's consumers! The world's population is currently about 6.8 billion. Zimbabwe population of about 12 million is by far very negligible (approximately 0.18%) compared to the world population. Therefore, when one thinks of where the next significant group of customers is going to come from, its likely to be coming from outside the territory of Zimbabwe. Inversely, it is more likely that the local customers are also increasingly not going to be loyal to local suppliers.

It may look a daunting and expensive to export goods and services, but it will actually help small businesses in both current and future economic downturns. Dealing with diversified foreign markets would assist the Zimbabwean SMEs to manage the risk associated with concentrating on local sales only. As a crucial stepping stone, Zimbabwean SMEs should perhaps start by serving the neighbouring foreign markets like Zambia, South Africa, Mozambique etc as these may tend to have less barriers in terms customer information availability, short distances involved, language and culture commonalities, as well as familiar regulations, bilateral and multilateral trade agreements.

Are you a Zimbabwean SMEs or micro-institution who has a product which you feel can do well in the foreign market? Feel free to network with trade facilitators (ZIMRA, ZimTrade, Commercial Banks, Ministry of International Trade etc) to find the best way to assess your export capability and initiate export of your product/s or engage a consultant to assist you in preparing to penetrate foreign markets, including getting that very first order you need to move the first shipment and assistance in export documentation. Call Dennis +263 912 948 419 for some support services.

Manage Quality of your Export Product

2009-08-12T16:09:00.001+02:00

The most fundamental quality control principle which is true for any Zimbabwean company is that when the management gets committed to controlling a manufacturing process, the quality of that process starts to improve as well.

When quality problems on products manufactured in and exported from Zimbabwe arise, they often affect profitability of the exporting venture, affect brand image on the export market and results in lost sales and costly product returns. All exporters should be conscious of problems which can result from the quality of their export product. The awareness of such problems triggers commitment towards improving the quality of the export product. What is the starting point in implementing quality management for your export product/s?

SMEs may adopt the most traditional kind of quality control, which is performed on exports which is carrying out final random inspection before shipment. After finishing production and when the export product is ready for shipment, inspectors randomly inspect batches of products to check conformance to the specifications and requirements. This process is also applicable to those exporters who are not really into production of the products they export; those who simply buy locally or internationally and then sell into their export markets. The final inspection may assist in boosting the confidence in own product quality, though the sample may miss at least one defective product unit. Remember that if one product gets to export market it may result in the loss of future sales! Nonetheless, final random inspection remains an efficient way to significantly improve confidence level in the quality, but they have to be designed and operated with professionalism.

Other quality management measures the SME exporter may adopt include performing inspections during production cycle (in-process inspections), meaning that the inspections are done at the end of each production stage of a given product. Performed by all shop floor employees at the factory site and during the production cycle, in-process inspections minimise the reaction costs in case of non conformities as they may usually cover a 100 percent check. In-process inspections are also carried out when loading the product i.e. verifying product quantities and the sealing of the containers so that, at destination, the receiver is almost guaranteed that his shipment would be delivered unspoiled.

It is often advisable to get the services of a professional partner who has the capability and experience to help set-up and operate a simple or very complex quality management system for your export market in a cost efficient way. If such efforts are to receive credibility in export markets, they should earn certification under ISO Quality Management Principles e.g. ISO 9001:2008. The rationale for encouraging SMEs to earn such certification is that some export markets insist on dealing with certified suppliers for the sake of quality of their own products. Those SMEs who are keen to get assistance on setting up the quality management systems in Zimbabwe may get into touch with the webmaster of this blogsite, who can assist at very reasonable cost.

Zimbabwean SMEs are therefore advised that they should take export quality issues seriously. Defective goods or incorrect consignments to international customers are expensive to deal with, and often in losing market shares.

Why should Zimbabwean Companies participate in Trade Fairs?

2009-07-23T10:49:00.008+02:00

Is it really worthy the effort to participate in international trade shows/fairs? Many SMEs would be forced to believe that participation is just an unjustifiable trip which has no predictable return. For business companies, it is different from consumers who go to trade fairs to ask, “How much it this and that?” as business companies have to participate in trade fairs to establish relationships which corporate buyers and distributors of own products. Its more of looking for opportunities to partner with business counterparts who assist in selling own products. There are many good reasons why SMEs should participate in trade shows - both domestic and international rather than relying on reputation and e-marketing like websites and emails.

Build Relationships with Corporate Buyers at the Trade Fairs.

The best way to make lasting business contacts is to talk to the customer face-to-face, as it gives one the chance to make the right impression. Zimbabwean SMEs should participate in international trade fairs in order to establish new trade contacts for their exports. For this to happen, they have to make good presentations (not of false promises), exchanging business cards and even visiting some foreign business premises and representative trade attachés of Zimbabwean embassies. This can go a long way toward promoting own product overseas. If the market is really good, the SME representative might even make a sale right at the show.
Find out Distributors for Export Market.

International distributors come to trade shows to find the best the world has to offer in terms of price and quality relationships. The SMEs should also build relationships with these international distributors, in order to reach out to some international buyers who may not have made it to the trade fair.. Smes representative should strive to talk with these distributors to find out what they need. It is a great way to get your product to customers in many countries worldwide. The SMEs representatives should not waste time moving from one stand to another admiring other products which are not in any way related to their own – this is not a tourist venture, its business search.
Trade Fairs are One-stop shop for Export Market.

When A Zimbabwean SME goes to an international trade fair, one meets potential clients from, not only the country hosting the trade fair, but all over the world. Not even the wealthiest companies could afford to meet with so many potential clients from so many regions in a few days. If your company is targeting a particular region, there are several trade shows designed for regional markets, such as SADC or COMESA or Europe. This means that not every trade fair suits own requirement, so choices should be made on which one/s to take part in.
Trade Shows Provide a Platform for Market Research.

This is one kind of market research which the Zimbabwean SME would do in-house and interface with real customers. By having a chance to talk to potential clients, the SME finds out what international distributors are looking for - and what their customers want. One may still find out that some of the preconceived notions about export markets are wrong, by learning from the market participants the special requirements and opportunities by region. Or, luckily one may find a niche market for a very specialized product that one happens to be uniquely qualified to produce.
Test your Product at Trade Fairs.

Zimbabwean SMEs should always take their trade samples to the trade fairs- its imperative! When such same products are presented, overseas buyers can give their opinion on the spot. Such immediate feedback will create a chance to get reactions to sizes, colours, design, price, flavors and ingredients. Remember products may need to be customised to suit the target market, due to different tastes. Trade shows give Zimbabwean exhibitors the chance to observe their competition for their products and whether their products appeal to buyers.

It is therefore imperative for any serious new or old Zimbabwean exporter to consider participating in some international trade fairs. The participation should however be punctuated by good negotiating skills and good presentations, considering different cultural background, language, political and geographical differences. For a successful participation the right team has to be assembled for each trade fair. For the calendar of trade fairs which Zimbabwe exporters can participate in, kindly get in touch with ZimTrade or search their website http://www.zimtrade.co.zw/ for such opportunities.

How some Zimbabwean firms have lost ground in export markets - failure to cope with technology

2009-03-11T18:06:00.005+02:00

Zimbabwean manufacturers used to be competing fairly in the international markets. Distortions in the Zimbabwean economy have resulted in many companies fast losing their competitiveness in the past 3 years. The basic reason for losing such competitiveness is the failure to keep pace with changes in production process technology, for whatever reason. Those firms who failed to make optimal investments in technology lost their markets because they could not meet the product quality demands of export markets.

Symptoms of Failure to Cope with Technology

The following are the symptoms among Zimbabwean companies who have since fallen behind in technology: -

Uncompetitive costs of production relative to what foreign competitors
Deficiencies in product quality

Why did the Zimbabwean Companies fail to upgrade their technology?

Some firms had made initial capital investments in labour-intensive production processes to take advantage of the relatively low labour costs which prevailed in the country. However, the change in the state of technology rendered such methods ineffective to meet the required quality and precision in finished products. In some cases, investment in more automated production methods has become necessary. There are several factors which inhibited investments by Zimbabweans in improved technologies. Some of the reasons are as follows: -

Some firms do not have search mechanisms for information on changing technological and market conditions and do not keep abreast of the technological trends in their industries. Such companies see no reasons for attending international trade fairs or technology exhibitions.
The information gap had not been filled by any institutional arrangements initiated by ZimTrade, Government or industry associations for various reasons.
Some firms had not made any investments in improved technology for lack of foreign exchange needed for importation on vital cogs of driving technology.
Other firms could not make any investments in improved technology for lack of accumulated profits which could be ploughed back into the enterprises. Such firms had either accumulated losses or had failed to generate profits for a long time.
Some firms had suffered from the effects of rigid price controls which prevailed in the country.

Zimbabwean firms had been in financial problems for a long time which eroded their capacity to make any significant investments in capital equipment, training and innovations. Investment in general had been low or stagnant.

What Should Be Done by Zimbabwean Companies

The following are methods which are relatively easy to implement but do have amazing results: -

Some firms must put considerable efforts into improving their competitiveness by way of making serious investments in technology. Why ‘effort’? For some companies it is a matter of efforts - some companies’ management think they can do with highly skilled labour only to beat competition but I feel it is short lived. In some cases, investments in more radical changes in technology are needed to include changing to the use of microelectronic controls. Management have to prioritise the modernisation production process technology in order to keep afloat in the export market
Top management has to develop appreciation of the pace and trends of technology development elsewhere, as a guide to the kinds of investment that must be made to create and develop new technological capabilities.
Attend international exhibitions to keep abreast with changes in technology.
Enter into partnerships with foreign companies or attract foreign shareholders who bring in new technology.

Suspension of Duty and VAT through Mid Year Fiscal Policy Review July 2009

2008-11-04T16:46:00.007+02:00

Reduced Customs Duty on Raw Materials, Intermediate and Gapital goods

The Ministry of Finance has reduced customs duty rates on raw materials, intermediate and capital goods, with effect from the 1st August 2009, as follows:

Reduced Customs Duty on Finished Input Goods

With effect from the 1st of August 2009, Customs Duty on finished goods has been as follows:

Reduced Customs Duty on Basic Consumer Goods

Duty-free importation og defined basic commodities has been further extended to the 31st of December 2009. The basic commodities to enjoy duty free importation are as follows: cooking oil, margarine, rice, flour, salt, mealie meal, bath and laundry soap, washing powder, toothpaste and petroleum jelly.

This development comes with opportunities to import the said items for SMEs.

‘Landmines’ in Exporting - The Don'ts of Exporting in Zimbabwe

2008-09-09T15:13:00.011+02:00

International trade business has extra dimensions of legislations and controls over domestic trade business. Because of those extra dimensions, any new or existing exporter should tailor-make own operations to avoid committing the "don'ts" of exporting, as the effects of ‘stepping’ on those ‘landmines’ might be fatal. Therefore the purpose of this post is to advise on how to quality control own export operations by reviewing some of the "don'ts" which Zimbabwean exporters commit.

Don’t #One:

Exporters should not forget that they are responsible for maintaining full compliance with all Zimbabwean Exchange Control laws and Customs and Excise Laws (hereinafter collectively termed export laws) that are relevant to their products at the time of export. Such responsibility makes the exporter liable for the export control violations that one might knowingly or unknowingly commit while engaging in an export transaction and for the export control violations that one’s agents (such as freight forwarders) commit while carrying out export operations on the exporter’s behalf. These include carrying out illegal transshipment or illegal export of own products without permits etc.

Don't #Two:

Exporters should not neglect to investigate whether the foreign markets into which they are exporting their products have any Import Controls related to the sale of such product. Such foreign destination’s import controls may be in the form of import prohibitions, import restrictions (quotas) and import licensing requirements. Such controls may be based on country of origin, product type, or product characteristics, such as products produced by convicts and counterfeit products. Imported products, which contravene an importing country's import controls, are generally refused entry at the importing country's border, thereby resulting in unnecessary loses or costs.

Don't #Three:

Exporters should not neglect to evaluate country risk in addition to buyer risk in selecting the proper payment method for their export transactions. Countries frequently experience political and economic problems so severe that buyers in such countries are precluded from obtaining the necessary foreign currency to pay for their imports. Exporters that ship to such countries without having investigated the country's political and economic situation and without having selected a payment method appropriate in light of such political and economic situation run the risk of not receiving payment for their export sale, regardless of the good intentions evidenced and financial responsibility exercised by their foreign buyers. Such non payments by foreign buyers may end up degenerating into violations of repatriation laws of Zimbabwe.Exporters should not neglect to evaluate country risk in addition to buyer risk in selecting the proper payment method for their export transactions. Countries frequently experience political and economic problems so severe that buyers in such countries are precluded from obtaining the necessary foreign currency to pay for their imports. Exporters that ship to such countries without having investigated the country's political and economic situation and without having selected a payment method appropriate in light of such political and economic situation run the risk of not receiving payment for their export sale, regardless of the good intentions evidenced and financial responsibility exercised by their foreign buyers. Such non payments by foreign buyers may end up degenerating into violations of repatriation laws of Zimbabwe.

Don't #Four:

Exporter should not confuse INCOTERMS when submitting the customs documentation. It is important to ensure that the exporter does not misuse any INCOTERM for any purpose and that the exporter fully understands the costs, responsibilities, rights and obligations that accompany the use of a specific INCOTERM. The misuse of a selected INCOTERM can lead to over or underpayment of costs and to over or under assumption of responsibilities, rights and obligations. Zimbabwean transporter of exported goods under which INCOTERM has been misuses might end up being forced by Customs authorities to complete Forms CD3 at the Border Posts in foreign currency simply because the exporter quoted incorrect INCOTERM on the respective Form CD1.

Don't #Five:

Exporters should not ignore their responsibility to comply with the Zimbabwe Exchange Control Laws as they relate to required export documents. Exporters are required to prepare and submit a Form CD1 for each export, unless where an exemption applies. The Form CD1 must list the contents of each shipment, values of shipment, cite the appropriate export license, and identify the final destination, end recipient. Failure to provide a Form CD1 exposes an exporter to criminal penalties under the Zimbabwean laws.

Don't #Six:

Exporters should not make any misrepresentations on their Forms CD1. Exporters are responsible for accurate Forms CD1. The following specific areas require attention: Don't under-invoice or over-invoice your products on your Form to help an importing customer avoid tariffs or taxes.Don't misrepresent the place of origin on your Form CD1 in order to assist your foreign buyer to gain access to a preferential duty program to which your foreign buyer is not legitimately entitled.Don't incorrectly identify the contents of your shipment in an effort to evade the Zimbabwe export controls that apply to your product. These activities violate Zimbabwe export laws and expose a Zimbabwe exporter to civil and/or criminal penalties. In addition, they expose the Zimbabwe exporter to a potential violation of the importing country's tax law under the theory that the exporter aided and abetted the importer in committing tax fraud.

Don't #Seven:

Zimbabwean exporters should not be greedy - if an export opportunity looks too good to be true, it often isn't true! Just think of all the Zimbabwean exporters who have so far been trapped in export scams and don't get lured into participation by thoughts of the scarce foreign currency in Zimbabwe which may become available to you for little or nothing in return. Some have been duped after being convinced by foreign conmen that their product will fetch unbelievably high price, only to lose track of the ‘too-good-to-be-true’ foreign customer soon after shipment and before getting payment. Don't lose your good business sense in the face of an export opportunity and give export sales opportunities the same level of scrutiny that you would give any business deal.

Exporting from Zimbabwe - The Passports to Export

2008-08-11T14:35:00.004+02:00

Any person ordinarily resident in Zimbabwe, whether individual or corporate, can export any of the uncontrolled goods from Zimbabwe without any need of a special authority. The potential exporter does not necessarily need to be a manufacturer of the product – all the entities throughout the chain of distribution can move the identified goods to international markets, provided the person has all the ‘passports to export’ from Zimbabwe. The following are the passports for exporting goods from Zimbabwe.

Registration of an Exporter
One has to register his/her name with one of the Zimbabwean registered Commercial Bank or Merchant Bank. The registration is a once off exercise which does not take hours to complete. It is a simple procedure which calls for submission of documents

Copies of National Identification Card of an Individual Exporter
Proof of Residence for Individual Exporter
Copy of CR14 for corporate exporters
Copy of Certification of Incorporation in Zimbabwe for corporates
Duly completed Registration Form for both individual and corporate exporters

Relevant Export Licenses and Certificates of Origin
Export licences are only applicable to goods which are not of Zimbabwe origin but being exported form the country. The licences are obtainable from Ministry of Industry and International Trade. If goods are of Zimbabwean origin as defined by Rules of Origin under specific Bilateral agreements with target export market, it is wise for an exporter to complete a certificate of origin, to qualify for preferential treatment when goods enter the destination country.

Getting a Form CD1 for Specific Shipment
Once registered, the exporter can submit the Commercial Invoice to any registered Commercial Bank or Merchant Bank for creation of a Form CD1. This process should ideally not take an hour to complete per each Form CD1. A Form CD1 is a declaration form on which an exporter attests to the Exchange Control authority, Reserve Bank of Zimbabwe, the value and quantity of goods to be exported. This form should be completed with acquittal in mind. A standard acquittal period (the period within which the payment for the exported has to be received in Zimbabwe is 90 days).

Completion of Customs Procedure
Once the exporter has obtained the Form CD1 from the aforementioned sources, s/he should proceed to any Inland ZIMRA export processing office for a Bill of Entry, as pre-clearance exercise. The exporter simply gives his Form CD1 to a registered Customs Clearing agent for this formality, who completes the Bill of Entry template as per instructions in the Customs ASYCUDA manual. Trying to get a Bill of Entry from the frontier ZIMRA Port of Exit may cause delays in one's export. It is recommended to do pre-clearance as stated above.

Consignment Notes
For every export there is a consignment submitted to Customs office, which is filled in a standard format. These notes act a proof of export to Customs; they are very important for making claims under drawback of duty and cancellation of exports. The type of consignments notes are as follows:

Rail Advice Notes – issued by National Railways of Zimbabwe after being handed over the goods export. It should be accompanied by a notify party of instruction
Airway Bills – issued by the airline after being handed over the goods export. They should be accompanied by shippers instructions
Road Consignment Notes – issued by the road carrier after being handed over the goods export.

Documentation for Controlled Exports
In Zimbabwe, the exporter should look for speciliased permits/ authority for the controlled exports. The controlled exports are:

Wildlife and Wildlife Products
Agricultural Products
- Grain
- Dairy products
- Seed
- Fresh farm products
Livestock (pedigree, for shows or competition etc)
Live Horses
Used agricultural equipment
Second hand industrial equipment including scrap metal.

How To Start Exporting from Zimbabwe

2008-07-30T17:44:00.004+02:00

If any Zimbabwean company or individual is looking to turn a quick profit, then exporting is probably not a good idea. It takes time to build up a successful exporting business, so potential or new exporter should make sure they are prepared for a long-term commitment exporting. There are some important stepping stones which need to be carefully laid.

Choose Target Countries for Export

One has to evaluate which country to export from Zimbabwe and whether there is adequate demand for intended goods. This evaluation has to take into consideration the distances involved for movement of goods, cultures involved and the language differences. It is relatively easy to export to those countries where there is a direct connection in terms of road, rail or air transport, such as South Africa, Zambia, Botswana or generally SADC region.

Make Contacts and Set up Sales and Distribution Networks
The best choice for a company intending to export is to partner with parties who are already active in the country in which one hopes to sell own products. This can also be accomplished through appointing selling agents or distributors in the target country. In order to establish such a selling network, one should use avenues like trade fairs or shows or foreign missions to meet such potential partners. Dealing directly with a final customer in a foreign country is often risky, when it comes to payment and collections for the delivered goods.

Understand the Fundamentals of Zimbabwean Export Laws
To be successful in exporting from Zimbabwe, one has to be avoid making unnecessary rough patches by avoiding breaking the laws of Zimbabwe especially:

Declarations forms and accompanying documentation
Repatriation and use of the foreign currency earned from exporting
Rules of Origin and the related Regional Bilateral Trade Agreements

Whilst these first posts are somewhat theoretical, subsequent posts will provide more details of the raised points, like the export laws, participation of trade fairs, export marketing, existing trading agreements between Zimbabwe and its trading partners, special arrangements for export of specific controlled products etc.

Look for Export Orders
The best choice for a new company to exporting is to partner with someone who is already active in the country in which you hope to sell your products. This can be accomplished through appointing selling agents or distributors. In order to establish such partners, one should go to trade fairs or shows to meet such potential partners, who are aggressive enough and offer reasonable selling commissions. Dealing directly with a final customer in a foreign country is often risky, that’s why it is recommended to find a locally based of foreign partner to break into the market. Finding orders needs a lot of effort, as the new exporter will be ignored several times and in some cases, the potential foreign buyers demanding unreasonable trade or cash discounts. More than often samples are needed for testing before orders can be placed. Such samples can be distributed through the agents, during trade fairs or partners.

Fulfil the Export Orders
Once such hard won orders have been found, elements of quality management become important. The exporter should consistently and persistently produce good which make the specifications or the selected samples. This is where exporters lose is; they compromise on known quality levels to cut on costs. Such move cannot go unpunished by competition. Later posts will highlight more of the element of QUALITY. Besides the production of a product in accordance with specifications, there are other factors which are of paramount importance and these are:

Time taken to deliver the product – it should be within the agreed time
Packaging – should protect and enable safe handling throughout the trip to the destination country
Complete the customs or clearance procedures

Why should a company want to export?

2008-07-18T16:59:00.003+02:00

Reactive or Proactive Exporting

All Zimbabwean companies which have so far sent their products to international markets either ventured into exporting for proactive or reactive reasons. Proactive exporting entails planning for the activity and making some necessary investments in resources and time. Reactive exporting is a result of being pushed by circumstances, especially in the Zimbabwean domestic market, to go into exporting without careful considerations. Zimbabwean companies who proactively plan to participate in exporting business are, in most cases, better positioned than companies that simply react to environmental factors. In this blog, I recommend all the companies SMEs or large corporate companies to adopt the proactive exporting, as the approach breeds sustainable export development. If one company simply reacts, mistakes can be done, as the managers will be pressed for time and resources

Benefits of Exporting

There are several benefits of successful and proactive exporting and these are, but not limited to, the following:

The Zimbabwean market may not provide the opportunity for growth that the company needs, as the products may not be fast selling. There may need to raise foreign currency to increase your plant’s capacity. Developing export markets is just as important as developing new products for growth purposes.
Participation in an international environment may sharpen on Zimbabwean companies’ innovative skills and open up opportunities that might never come your way if you limit yourself to the Zimbabwean market.
Zimbabwean companies need to diversify their markets. They should not live with an illusion that everything that they produce will be absorbed forever by the Zimbabwean market, especially with the current excess demand. Any Zimbabwean company should be looking for the increased security they can achieve by spreading potential risks over a variety of markets. Putting all eggs in one basket can expose companies to more risk, but by selling products in a number of international markets, Zimbabwean companies can reduce their exposure to economic downturns in any one of the markets including home market.
Operating in an environment of excess demand of some goods, which is characteristic of the contemporary Zimbabwean market, may result in production of sub-standard quality goods. Zimbabwean companies need to ensure that they expose their markets to international competition before the competition comes to the home market, by exporting their products.

Having said all of this, the management of the company should not simply assume that the successful Zimbabwean product will start selling in any international market. There are many more factors which need to be considered. Find out how we can help each other to build your exports by identifying these other factors, in subsequent posts.