Sir Nigel's Journey…

Interesting video: -

I was fortunate enough to get tickets to attend the very first BarCamp in Harare Zimbabwe. I wasn’t disappointed in fact, quite the opposite. There were many people from various backgrounds including students, ICT entrepreneurs, media and even bloggers like little me. The main focus on the day was of course the Startup Challenge. I wasn’t involved although I must admit that I do have a project that I am working on that could easily qualify for the competition. I was particularly intrigued by fellow ICT enthusiasts who spoke about changing and adding value to the sector in their own respective way. I also witnessed a variety of Zimbabweans – White, Indian, Mixed Race and Blacks ‘vibing in the same room’ whilst contributing and sharing their various thoughts and ideas on the industry. Call me the nostalgic blogger but I couldn’t help but smile from within that day. Here we were a bunch of us Zimbabweans trying to make a difference in our own way. Yet another example that things can and do work without any political influence or intervention. I’ve said this before and I’ll say it again, not everything in Zimbabwe is politically related and BarCampZim was yet again a very good example of this.

What did I get out of the day?

I learnt that I wasn’t the only one with a Zimbabwean based ICT related project. I learnt that there are many people working hard in their homes and businesses on some project with the potential to change the industry in Zimbabwe and beyond in some way. To say I was inspired is a massive understatement.  Every time I go to South Africa or pass through Nairobi enroute to some other destination, I can’t help but think about the ‘potential’ that Zimbabwe has within the region. It’s massive! With a well educated and entrepreneurial minded population I see a bright future ahead of us. If we could just make and follow through with the ‘necessary investment’ in the various areas, I predict that Zimbabwe could challenge the likes of Kenya and also become a massive Tech Hub on the continent.

Some Keys Points: -

A few people raised some issues about Econet and their lack of support for the ‘small guy’ within the industry. In fact people weren’t happy at all with their conduct especially those who had approached them to collaborate on a specific project. At this junction, I stood up and spoke about Econet and my thoughts on their interaction with the various parties. It has been noted via several media sources recently that Econet is not or rather has ‘forgotten its roots’. Sadly this is not the first time I’ve heard this. I pointed out that tackling a company that supposedly deposits several millions of dollars per day and has almost 6 million subscribers was ‘probably not the wisest thing to do’. Instead disgruntled stakeholders should focus on the current ICT laws and tackle this issue from that angle.

What do I mean by ‘necessary investment’?

I’ll touch on a 2 key points here: -

• It has been widely noted that certain reforms are necessary to ensure that there is a level playing field in the ICT sector. We need a more open and fair system that ensures that the small guy with a brilliant idea is protected against the big guys with big lawyers and that seemingly endless bank account. Essentially we need more up-to-date and relevant laws in general. For example we require immediate focus on issues like intellectual property and so forth
• We desperately require institutions that financially support the various entrepreneurs we have in Zimbabwe and believe me – we have many! I stumbled across an example of the financial support I’m referring to this a few months ago – www.matambaanonaka.com. Recently I went back to my trusted Twitter account and asked whether we had other angel investors in Zimbabwe. I didn’t get many responses to this question but I know that we need more angel investors if we are to move forward in any meaningful way. 

Overall I was thoroughly impressed with the manner in which BarCampZim was organised – congratulations to the organisers!! I met some of the interesting characters from Twitter and I have every confidence that there will be more BarCamps in Zimbabwe. I look forward to a time when I shift my busy schedule to attend similar events in Bulawayo, Gweru, Mutare and even Chinhoyi. Till then…

 Aluta Continua

This is ONE event I have been patiently waiting for. The first ever independently organised TED event in Zimbabwe. The venue is initmate from what I’ve been told so it’s crucial that people register quickly to secure a place. I will share more details about the various speakers once they announce the finer details.

For more information, please download this: tedx registration brochure (2)

Join the conversation…

A lovely lady from www.kubatana.net got in touch earlier this month and wanted to pick my brain about returning home to Zim. She made an interesting comment about me probably based on my blog and what she had read (I can only assume of course).She said I was ’chatty type’ and she expected the interview to last longer than planned. We both laughed at the comment and she was right – the interview was longer than expected. Anyway here’s the link: – http://www.kubatana.net/html/archive/econ/110318kub.asp?sector=ECON&year=0&range_start=1

You are invited to the first Zimbabwe Business Deal event at 4pm on Thursday 17 March 2011 in Harare, Zimbabwe at Royal Harare Golf Club Bar. This is an opportunity for you to find out what is happening on the Zimbabwe business scene, strike a deal and find opportunities for partnerships. The panel is made up of startups, entrepreneurs, miners, financiers and business people doing in Zimbabwe.

Come and hear about the businesses firsthand, get the opportunity to invest, buy land and directly interact with people doing business in Zimbabwe at the event. Panelists will be discussing real, practical projects. Come and network with entrepreneurs, professionals and executives, and even do deals! DATE: Thursday, 17th March 2011 Time: 4 – 7.30 pm VENUE: Royal Harare Golf Club Bar, 5th Street Extension corner Josiah Tongogara Street, Harare, Zimbabwe Tel: +263 4 702927/8/9/0

SCHEDULE OF EVENTS Opening remarks: Debbie Peters – MC Project presentations by 1. Ivan Savala- Sagate Mining 2. Steve Margolis – Margolis Holdings 3. Tawanda Chikosi – Laptop Tracking 4. Farayi Dyirakumunda -African Investment Markets 5. Humphrey Mliswa - Doltek Enterprises 6. Bernadette Msipa – Joseph’s Oracle 7. Rinos Mutasa – African Contact Centre

The panel discussion will end in a question and answer session led by Debbie, then general networking. Bring business cards and any marketing materials. Please note that dinner and drinks will be for the guests’ own account

To attend, send confirmation of the following details: • Company name and sector • Full name of participant • Job Title • Email address • Contact number The cost of the event will be $50 payable at the door. Please email Debbie@petersgibsons.com if you have any questions.

VENUE: Royal Harare Golf Club Bar, 5th Street Extension corner Josiah Tongogara Avenue, Harare, Zimbabwe Tel: +263 4 702927/8/9/0

There’s an investment conference in Harare on the 8th & 9th March 2011. Please see the attached documents for more details: Zimbabwe Draft Agenda 2011

Calling all entrepreneurs, miners, financiers and business people looking for investors in Zimbabwe! The first Zimbabwe Investment Platform event will be held on the afternoon of Friday 25 February in Sandton, Johannesburg at the Blues Room in Village Walk.

The Zimbabwe Investment Platform is inviting anyone who is seeking funding for their business or investment to attend the event and pitch on their Zimbabwe project to an audience which will include bankers and private equity principals who can actually finance their project. Financiers and bankers who are interested in doing business in Zimbabwe are also invited to hear about the investments first hand and directly interact with people doing business in Zimbabwe at the event.

Each participant will be given about 10 minutes to pitch their venture in Zimbabwe in front of the audience which will be made up of a large number of bankers, private equity firms and financiers. Participation is free for presenters looking for funding. Speakers wishing to participate must have a real, practical project in Zimbabwe which needs funding or partnership. After the presentations there will be time to network and get some deals done with the financiers

Once all the participants have confirmed attendance, I will circulate the schedule for the event and other details. If you have any further questions, please let me know.

Contact:-

Debbie Peters
Peters Gibsons Investments
P.O. Box 4105
Rivonia
Johannesburg 2128
South Africa
Tel: +27 78 231 1625

This is an interesting perspective on Africa as an investment destination and the interviewee suggests a few reasons why Africa is experiencing higher capital inflows. 

Highlights: -

Point 16 – vital to note this bit right here: -

Specific key concerns highlighted by stakeholders during the consultations for the attention of the Budget included the following:

• Guaranteeing uninterrupted power supply.
• Reconstruction and rehabilitation of roads infrastructure.
• Guaranteeing clean water supply and improved sanitation services.
• Improving health and education social service delivery, among others.
• Social protection and safety nets, including for people living with disability.
• Support for agriculture and household food security.
• Continued stability in the price level, including sustainable wage levels.
• Positive Interest rates on bank deposits, and Access to affordable lines of credit.
• Employment creation.
• Abuse of public resources and corrupt practices.
• Perceptions of exclusion in development programmes.
• Political discord in the Inclusive Government and Absence of National healing.

Manufacturing – erratic power supply and absence of medium to long term capital continue to adversely impact on domestic industrial cost of production, compromising competitiveness of the manufacturing industry and limiting growth to the anticipated modest 2.7% in 2010.

Mining: - mining has been the fastest growing sector since 2009, with growth up from 33.3 % in 2009 to an estimated 47% in 2010.

Significant realisation of the potential of the country’s mining industry will require up to US$3-5 billion investment towards the recapitalisation of mining houses over the next 3-5 years broken down as follows:

Gold – 1.000

Platinum – 1.200

Ferrochrome - 0.250

Nickel - 0.110

Coal - 0.280

Diamonds -  0.300

Tourism: – Tourist arrivals are expected to increase to 2.2 million this year, from 2 million in 2009. Reflecting this, tourism receipts are estimated to realise growth of 47% to US$770 million, from US$523 million in 2009. Tourism is anticipated to grow by 6% in 2011, benefitting from the continued recovery in both global and domestic economic activity, and also on the back of targeted marketing strategies.

Financial Sector: - As at 30 September 2010, sixteen out of twenty four banking institutions (excluding the POSB) were in compliance with the minimum paid-up capital requirements. Most banking institutions’ balance sheets showed resilience to shocks with respect to all the risk assessment factors, which include credit, sovereign, foreign exchange, interest rate and liquidity risks. Against this background, bank deposits continue to grow by a monthly average of US$82 million from US$1.3 billion recorded in January 2010 to reach US$2.3 billion in September 2010, signifying improved confidence in the sector.

External Sector: - the latest balance of payments forecasts to year end show total exports growing by 25% in 2010, from US$2 billion in 2009 to US$2.5 billion. Projected mineral exports to year end of US$1.159 billion account for 46% of this, followed by agriculture, US$456.3 million; and manufactured exports, US$393.3 million.

External Debt Development: - notwithstanding the green shoots on the economic recovery front, the country remains saddled with an unsustainable external debt amounting to US$6.9 billion which is some 103% of GDP. About 75.3% of this debt is medium to long term and is owed to official creditors. ‘…About 75.3% of this debt is medium to long term and is owed to official creditors’.

Of the public and publicly guaranteed debt of US$6.4 billion, total external arrears comprised US$4.7 billion by 31 October 2010 and are owed to:

• Multilateral Financial Institutions – US$1.469 billion

• Paris Club – US$0.386 billion

• Non Paris Club - US$0.072 billion’

Recurrent Expenditure Developments

The 2010 National Budget provided for recurrent expenditures of US$1.26 billion. Cumulative recurrent expenditures to October 2010 amounted to US$1.2 billion, representing 82% of the actual expenditures.

The bulk of the current expenditures were on employment costs, goods and services, grants and transfers.

Government is still meeting 100% medical aid contribution to Premier Medical Aid Society for all civil servants in 72 view of low remuneration in the Public Service. To date, about US$23.4 million has been disbursed for this purpose.

Foreign Travel: - foreign travel remains unsustainably high relative to other critical services.

To October 2010, foreign travel expenditures amounted to US$29.2 million, against an original budgetary provision of US$24.2 million, representing 3% of total recurrent expenditure.

Education: - Government also supported 34 000 local and foreign based students through payment of tuition fees and stipends at a cost of US$8.4 million

In 2010, Government in partnership with cooperating partners supported 5 575 primary schools with a package of four textbooks per pupil, stationery and steel cabinets valued at US$52 million. This intervention is set to reduce the textbook to pupil ratio from 1:30 to 1:1.

Health: - Improving health services delivery was also prioritised in 2010 in line with the Millennium Development Goals.

Government disbursed funds amounting to US$115 million to cater for health institutions operations.

This was further augmented by US$12 million for the resuscitation of Gwanda, Masvingo, Ngomahuru, Ingutsheni, Gweru and Karoi hospitals. This intervention has seen an increase in patients receiving treatment at the institutions

Social Protection: – To contain school drop-out rates at both primary and secondary level, Government and development partners availed US$30 million towards the payment of school fees and examination fees for vulnerable children, targeting 625 000 primary school pupils and 160 000 secondary school pupils.

Agriculture: - Productivity in agriculture still lags behind that of many other countries. For example, average maize yields stand at less than one ton per hectare.

Constitution Making Process: – As part of its commitment to fulfil the provisions of the Global Political Agreement, Government in partnership with cooperating partners availed resources to the tune of US$13.7 million towards the Constitution Making Process.

Of this amount, Government contributed US$4.8 million towards training of teams and the Outreach Programme.

This intervention has enabled outreach teams to fully cover all the Provinces by the end of October 2010.

Maintenance of Infrastructure: – The poor state of many Government buildings remains unacceptable as a result of a number of factors, which include under-funding for maintenance and repairs, negligence, lax security systems and unchecked vandalism.

The US$2 million disbursed towards maintenance of buildings and fixed equipment remains inadequate in light of the above challenges and, hence, the need for the Budget to focus on this.

Energy: - The US$2 million disbursed towards maintenance of buildings and fixed equipment remains inadequate in light of the above challenges and, hence, the need for the Budget to focus on this.

Transport: – An amount of US$10.9 million was spent on rehabilitation of roads and bridge construction, US$8.8 million; upgrading of airports, while US$4.3 million, was on rail infrastructure.

Information Communication Technology: – To improve use of information communication technology,

Government has availed resources amounting to US$7.7 million towards establishment of the communication backbone infrastructure, largely through Tel-One.

The resources were meant for the optic fibre link from Harare to Mutare. To date, 228 km out of the 261 km have been excavated and pipes covering 101km have been laid.

To date an amount of US$50 000 has been disbursed towards the e-Government programme, a development that has seen the development of 28 websites for Ministries.

The target is to create an e-government platform which will enable citizens to obtain Government information and services from their local district offices without waiting in queues and travelling long distances.

So far, Government has availed an amount of US$1 million for the procurement of computers for schools, both primary and secondary. This has seen a total of 330 computers being procured out of a target of 589, for distribution across the Provinces

Entire document: – The 2011 National Budget Statement

This week is going to be an extremely interesting week especially the 25th November when the National Budget for 2011 is announced by Mr Biti – Finance Minister. This video is yet another glimpse of what is actually happening on the ground.