A friend of mine asked me in an open conversation whilst we were having a business dinner last week. She simply said, what is Zim Asset? We talked about it for a while but I felt I should mention it here on ZimInvestor files and highlight the opportunities I see in it.
A lot of people have chosen to ignore the 129 paged document but will it help you or your business? I don’t think so. I shall not try to explain the paper which I feel has been explained enough on radio and other forums. With the Brazil World Cup fever gripping everyone these days, I have taken it to another level by trying to set up a Zimbabwe warriors’ team for the Brazil world cup. This is just a metaphor of how I see the opportunities and how one may exploit them.
My analysis of the ZimAsset can be used by both domestic and international Investors as well as other stakeholders. I have chosen a 4-4-2 formation with the striking force being the hot opportunities and possibly most rewarding at the moment.
On the goal post is Education. Education has always been a good business opportunity in Zimbabwe. Besides its slow growth, the long term benefits are more rewarding. However, I feel the growth in Education at the moment should have an inclination towards vocational education, than academic education. If one is to set up a college which specializes in vocational training, it will definitely thrive. I see Investment in education both at an individual, corporate or country level benefiting the country in the long run. At the date of writing this article, I have two solid investment opportunities in education ready for exploitation. The land has already been acquired and the school will be using a tried and tested brand. What is now needed is money to start the building project.
My two central defenders are Electricity and Health
I wrote a probing article on electricity a few months ago to just give people insights on what can be done in the Zimbabwean energy sector. The government of Zimbabwe has opened up opportunities for companies to venture into energy industry specifically electricity and contribute to the national grid. This is a solid business which has a level of guaranteed return for many years to come as the demand for electricity in Zimbabwe is only increasing. There are opportunities in Zimbabwe to set up hydro plants, thermal plants or even wind energy fields although wind may only work in few arrears in the eastern regions of the country. There have also been technological breakthroughs in the solar industry to use salt as an agent which has potential to bring down the cost of solar panels. All these are opportunities in the energy sector. Someone may say at this juncture, you are talking of big money spending. Think of electricity substitues at the moment. Gas stoves, gas cylinders and domestic gas itself are a great opportunity in Zimbabwe at the moment. This is common knowledge which doesn’t need a consultant to tell you. If you think you can bring gas stoves, cylinders and even the LP gas itself, then send me an email and I will link you up. These are not the only opportunities in the energy sector in Zimbabwe. Another opportunity which is energy efficiency technology and energy saving products.
The second central defender business opportunity is a guy named Health who plays his club football in Zimbabwe and has a poster in every household. Only a few sector of the Zimbabwean population doesn’t take any health products due to religious beliefs but the number doesn’t affect the opportunities in health and the demand for health products. I have a lady in my database with a building which she wants morphed into a hospital. The increase in disposable income from 2009 to date has made people prefer private treatment from private hospitals and has seen a rise in private clinics and hospitals. Besides the stochasticity of the economy, the private health sector has somehow managed to survive mainly because matters of health are matters of life and death. Pharmaceutical companies from pharmaceutical suppliers right down to the pharmacies in your neighbouhood have been doing so well despite companies in other sectors facing challenges. I would say these are the leads in this industry. I have someone in my database who has more than 20 years’ experience in pharmaceutical drugs supply.
Wingers: Public administration and real estate
Public administration is an arrear which the government has control over. It will help in facilitating investments in other sectors. Both local and international investors need to have faith in local investors. This sector has received a lot of bad publicity and criticism in the past. This may present challenges to investors since the greatest business partner of any country of the government. Having submitted several tenders to the government, I can say Iam impressed with the way the processes were done. We submitted several government tenders during the first half of the year. Though we lost out on a number of them, we know why we lost and why those who won got them. This winger is not perfect but is improving. I believe the government is doing something to make sure this department doesn’t stifle growth.
Real Estate is one industry that has made a lot of people billionaires including my extended mentor Robert G Allen. For those who have stayed in UK and Canada can tell you what an asset land is. A friend of mine who worked in Russia for a number of years told me how we are fortunate in Zimbabwe to have the opportunity to own land yet put little value to it. I think land is fast running out and if one has an eye to secure the future of the future generation, then investing in real estate in Zimbabwe will be the way to go.
Defensive midfielder: Finance and Insurance (Banking and Insurance)
Being an arsenal and Brazil supporter, I believe both teams have struggled because they lack a defensive midfielder. Having seen how JP Morgan was central in the growth of the building America, I think banks can play a central role in the growth of the Zimbabwean economy. Besides banks closing down, opening and closing again, the finance industry still has a lot of opportunities. Some which were mainly in the unbanked community are being exploited by mobile money facilities and mobile payment platforms. The opportunities still exist though I feel the greatest opportunities are not yet exploited. Banks have taken a conservative approach to the innovation and green companies especially investment banks. I have seen a lot of tech companies with potential failing to take off because they lack funding. Investment banks should find a way of funding some of these projects which will not only transform their business but the economy at large. The same also applies for Insurance companies as they were responsible for real estate growth in the past.
Attacking midfielder: Manufacturing
I do not need to have any special education to tell you that manufacturing has a lot of opportunities in Zimbabwe. However, the major challenge has been the high costs of producing in Zimbabwe against cheaper imports. Imagine if you could set up a manufacturing plant in your rural area were you won’t pay water bills and rentals notwithstanding cheaper labor. Won’t that bring down your production costs? Anyone who sets up a manufacturing plant now has potential to reap for the next 20 or so years.
Transport needs no much explanation. It is a business which has evolved from trains, to haulages and planes. Its major threat is technology and innovation but in Zimbabwe transport remains a worthy business investment. From transporting people to transporting goods.
Dual strikers: Mining and agriculture
I have decided to play mining as a second striker behind the chief striker agriculture. I believe mining can turn around our economy by its potential to score long range goals behind the strikers and from the dip in the midfield. Zimbabwe has a lot of mineral deposits and if you are to own one of them, it can make you a millionaire overnight. Mining equipment also has preferential tax treatment when imported to Zimbabwe. The opportunities in mining in Zimbabwe are so countless that they will be exhausted in this article.
Agriculture on the other hand has the potential to be the top scorer or the industry with the most jobs from subsistence farming to commercial farming. We at Ziminvestors have tried to help people exploit opportunities in Agriculture by training farmers in sack potato farming, fish farming, apiculture, viticulture broiler keeping, horticulture and pastured chicken farming amongst others.
what happens if I locate mineral deposits on somebody ‘s Farm