Zimbabwe Sovereign Wealth Fund necessary for future generations.

The discovery of massive diamond reserves in Eastern Zimbabwe has created an economic windfall which should be managed properly for future generations to benefit. Zimbabwe has various other resources including Gold, Coal and platinum which is believed to be the second largest known reserve after South Africa. These resources a finite and can run out and as such the proceeds from these resources must be invested wisely in properly structured Institutions such as the Zimbabwe Sovereign Wealth Fund (ZSWF).

According to the Sovereign Wealth Fund Institute a Sovereign Wealth Fund (SWF) is defined as a state-owned investment fund composed of financial assets such as stocks, bonds, real estate, or other financial instruments funded by foreign exchange assets. Generally these assets include: balance of payments surpluses, official foreign currency operations, the proceeds of privatizations, fiscal surpluses, and/or receipts resulting from commodity exports. Sovereign Wealth Funds can be structured as a fund, pool, or corporation.

There are two major types of SWF funds: saving funds and stabilization funds. Stabilization SWFs are created to reduce the volatility of government revenues, to counter the boom-bust cycles' adverse effect on government spending and the national economy. Savings SWFs build up savings for future generations according to Wikipedia.

Traditionally SWF tend to prefer returns over liquidity, thus they have a higher risk tolerance than traditional foreign exchange reserves. This is in line with their goal to create long term value and build wealth for future generations who may not have the same mineral resources at their disposal.

In theory SWF have their origins in Commodities – funded through commodity exports, either taxed or owned by the government. And Non Commodities – Usually created via transfers of assets from official foreign exchange reserves. Zimbabwe’s Sovereign Wealth Fund would naturally be from commodities and exports of minerals and royalties from Diamonds ,Gold ,Platinum etc.

A few SWFs, such as the Government of Singapore Investment Corporation (GIC) and China Investment Corporation (CIC), invest wealth from fiscal surpluses or foreign currency reserves.

According to the Economist Magazine “The world’s largest sovereign-wealth fund belongs to the United Arab Emirates, whose Abu Dhabi Investment Authority manages assets worth $627 billion. No single Chinese fund is nearly as big: the chunkiest, the SAFE Investment Company, has holdings worth $347 billion. But taken together China’s sovereign funds are worth an estimated $831 billion, more than any other country’s holdings. Many of the biggest sovereign funds belong to oil exporters.”

Many emerging nations which have significant natural resources have turned to SWF as a way to broaden and deepen their capital markets. WF provide long term capital similar to what the National Social Security Authority (NSSA) has been able to do in Zimbabwe’s capital and money markets over the last decade. The ZSWF will have a critical role in ensuring that there are more deep pocketed Institutions in Zimbabwe with capacity to underwrite huge transactions whilst furthering national economic vision and goals.Some African countries as well such as Libya,Nigeria,Botswana and Mauritania have also developed and established SWFs.

SWF have historically been accused of being too secretive and lacking in transparency which the ZSWF should be structured to address and ensure it has the support of all stakeholders as it will be holding assets and resources on behalf of the nation including future generations. he fund structure should outline the Management composition, here and how funds can be invested.


Domestically, people want to know how their money is being invested, whereas internationally SWFs face challenges investing in companies that fear their motives may be politically driven. These are areas which need to be critically looked at before the ZSWF concept is fully implemented.

Disclaimer

Prepared by GMRI Capital (www.gmricapital.com) for 3MG MEDIA (www.3mgmedia.ca). At GMRI Capital, we pride ourselves on the quality and depth of our research and analysis. This means digging deeper than our competition for information and generating more useful reports.

This article is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

Contact Email ; gilbert@gmricapital.com
Face book ; http://www.facebook.com/GMRICAPITAL
Skype ; gilbert.muponda
Website ; www.gmricapital.com

Entrepreneurship should be formally included in Zimbabwe Education

Developing nations including Zimbabwe face an uphill struggle to develop their economies relying on foreign Entrepreneurs and multinational corporations which usually are controlled and owned institutions which may or may not assist in building entrepreneurial infrastructure in host nations.

Whilst Foreign Direct Investment is a welcome source of investment and development emerging economics such as Zimbabwe need to take immediate and firm steps to develop local entrepreneurs from a very early age. Individuals shouldn’t become Entrepreneurs by fluke or by chance. There is need to put national efforts and resources to develop entrepreneurs from early in life.

Zimbabwe and other emerging market should welcome FDI but should ensure that local population do not remain perennial cheap labour providers without any hope of ever graduating into shareholders and business owners.

The providers of FDI should be pro-active and seek to use local suppliers wherever possible as a way to support local Entrepreneurs to slowly enter the entrepreneurship ladder. In the long run such relationships build long-term stability for all stake holders including the foreign investors.

Entrepreneurship like any essential life skill can be learnt, developed and refined and this is best done from a very early stages in life. The Educational system in Zimbabwe like many other emerging countries which were once colonized was modelled upon their colonizers and the majority of the population was trained and groomed towards being employees and not potential employers. Its true not everyone can be an employer but its also accurate to say everyone must be given an opportunity to be a potential employer at a very early age.

Considering how nations are forming into regional groups such as Ecowas ,EU,NAFTA, SADC etc, which are essentially economic and political groupings meant to retain all economic activity within members between members its imperative for nations like Zimbabwe to develop comprehensive entrepreneurial based education models which can develop globally competitive Entrepreneurs. The challenge to be Globally competitive should be part of a National Economic Vision which is driven by local Entrepreneurs who would have been trained and groomed from a very early age.

Training teenagers about Entrepreneurship from an early age will teach them proper values such as the need to think long term and seek to build wealth over a sustained period without resorting to asset grabbing or looting already established businesses only to run them into the ground. Youngsters have to be trained on the ethics and spirit required to build a solid business which can be passed from one generation to the next based on proper corporate structures and systems.



Disclaimer

Prepared by GMRI Capital (www.gmricapital.com) for 3MG MEDIA (www.3mgmedia.ca). At GMRI Capital, we pride ourselves on the quality and depth of our research and analysis. This means digging deeper than our competition for information and generating more useful reports.

This article is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

Contact Email ; gilbert@gmricapital.com
Face book ; http://www.facebook.com/GMRICAPITAL
Skype ; gilbert.muponda
Website ; www.gmricapital.com

CFX Bank liquidation by Interfin Financial Holdings opposed by Gilbert Muponda HC 288-11

Founding Affidavit opposing the Liquidation of CFX Bank Limited in terms of the Companies Act by Gilbert Muponda served on Interfin Bank and CFX Bank and filed with the Master of High Court on 17 May 2011 AT HARARE

I, GILBERT MUPONDA, of the City of TORONTO,ONTARIO ,CANADA, MAKE OATH

AND SAY AS FOLLOWS:
swear or affirm that:

I know or believe the following facts to be true. If these facts are based on information from others,
I believe that information to be true.
I make this affidavit in relation to an application* by

Interfin Holdings Limited Directors and CFX Bank Limited Directors
For Liquidation of CFX Bank Limited.

When Interfin Bank illegally and irregularly took over my Bank CFX which was previously called Century Bank they used the excuse that I was specified so I couldn’t oppose the illegal transaction. Now that that my full legal rights have been restored I have already filed a motion to oppose the liquidation of CFX Bank and also reverse the Merger which created Interfin Banking Corporation.

According to the Prevention of Corruption Act Assets of a specified person can not be sold ,bought or disposed of since those assets are under investigation and would be required as evidence in the legal proceedings. So you can not be investigating assets and at the same time selling those very same assets. The purpose of specifying a person is to facilitate investigations into the alleged corrupt activities. Section 10(2) specifically prohibits any person from dealing with the assets of a specified person. In terms of Section 10(7) of the Act to all transactions that we purportedly concluded during the period specification are null and void.


1 - I do hereby place it on record that I wish to oppose the proposed liquidation of CFX Bank Limited. I will suffer irreparable financial damage exceeding US $ 15.4 million if the said liquidation goes ahead before finalization of the High Court case HC 6244-04 in which I am challenging the illegal and irregular sale of 309 million shares from Century Bank which was then merged to create CFX Bank which is now in liquidation in an attempt to escape paying the $ 15.4 million.

2 - I have an on-going dispute involving CFX Bank Limited and Interfin Banking Corporation and its holding Company.Mr Raymond Njanike the Managing Director of Interfin Bank has publicly acknowledged this dispute in the NewsDay Newspaper published on 27 September 2010 by Mr Munyaradzi Muguwo in addition to many other articles.Link http://www.newsday.co.zw/article/2010-09-27-muponda-scared-off-cfx-suitors-interfin3 - Interfin Holdings Limited Director Mr Farai Rwodzi also publicly acknowledged this debt when he falsely claimed in the Newsday Newspaper of 25 August 2010 that Interfin had paid me US $ 5.3 million for my shares in Century / CFX Bank which were illegally and irregularly acquired. The link is herehttp://www.newsday.co.zw/article/2010-08-25-interfin-acquires-13-of-starafrica4 - I denied this false statement and NewsDay Newspaper published a retraction a few days later. Upto this day Interfin have not paid me anything for my Bank which they took and re-branded Interfin Banking Corporation and now they are trying to liquidate it after stripping it of all assets.

5 - ENG Capital contributories ,shareholders and Directors and myself are claiming US$ 15.4 million being the 309 million shares multiplied by the share price of $ 0.05 which give the claim total of US $ 15.4 million.

6 - Interfin Banking Corporation Zimbabwe is a product of a fraudulent merger between Century Bank and CFX Bank which was subsequently renamed Interfin Banking Corporation after another irregular merger between Century/CFX Bank and Interfin Bank Zimbabwe.

7 - The liquidation of CFX Bank Limited should therefore be held back until such a time that HC 6244-04 is finalized.Interfin Bank Directors are seeking to hide their tracks and creating a very complex and complicated web of mergers and de-mergers and liquidations and re-structurings which will conceal their illegal and irregular take over of Century/CFX Bank assets.


8 - All these “fake mergers” were designed with the intention of concealing the initial fraudulent transfer of 309 million Century shares illegally and irregularly transferred into Century/CFX Bank then Interfin Banking Corporation. This illegal transfer is being challenged through High court case HC-6244-04.

9 - I have attached a copy of my original founding affidavit for High Court Case HC 6244 – 04 dated 21 May 2004.

10 - I have attached the supporting affidavit by my Co-Director Nyasha Watyoka fully supporting my Original affidavit.

11 - The High Court Case is still before the Courts but it has been delayed since I am currently specified and as such have to seek permission from the Liquidator/Investigator to proceed with the action. However my court action HC 6244-04 is on the most part against the liquidator /Investigator it is therefore not possible to seek permission and approval from the same person you wish to take action against.

12 - I wish that the liquidation be delayed until such a time High Court deals with HC 6244-04.The liquidation is not urgent and I see no reason why it can not be put on hold pending the finalization of HC -6244-04.

13 - Proceeding with the liquidation before HC 6244-04 is finalized will cause me irreparable damage amounting to $ 15.4 million which I am seeking from CFX Bank Limited ,Interfin Holdings ,Interfin Directors and Shareholders jointly and severally each paying and absolving for the other.

14 - Interfin Banking Corporation Zimbabwe is a product of a fraudulent merger between Interfin Merchant Bank and CFX Bank which was subsequently renamed Interfin Banking Corporation after another irregular merger between Century/CFX Bank Limited and Interfin Bank Zimbabwe.

15 - Any further transaction or re-organization or restructuring will not change the facts that Interfin Banking Corporation has a disputed ownership due to the presence of CFX Bank assets in its DNA composition.

16 - If the merger was approved by all the regulatory Authorities then why would Interfin try to liquidate a Bank which it merged with. It clearly doesn’t make any sense to liquidate a Bank which has already been merged with another .

17 - Its not legally possible and its practically fictitious to claim to liquidate a Bank which has already merged with another resulting in the formation of a new entity.

18 - The so-called liquidation of CFX Bank is nothing but a fraud being perpetrated by Interfin Holdings Directors . There is no liquidation taking place whatsoever since all the CFX assets have already been “merged“ and transferred into the new entity now renamed Interfin Banking Corporation.

19 - This is an effort to hide the tracks of the original fraud which is being challenged under High Court case HC 6244-04.This is an effort to escape legitimate liabilities brought about by Interfin`s unwise and greed move of trying to grab CFX Bank assets.

20 - Interfin can not fully capitalize a Bank and then liquidate the same bank all within a year .According to another report titled Interfin Holdings Fully Capitalises CFX Bank Published on 13 January 2010 – http://allafrica.com/stories/201001130248.html .

21 - This does not add up and only provides further evidence that Interfin Banking Corporation are involved in fraudulent transaction and the various movements are meant to hide the tracks and cleanse an otherwise illegal and underhand deal.

22 - There can be no talk of liquidating CFX Bank since CFX Assets have been merged with Interfin and effectively transferred into Interfin Banking Corporation and rebranded Interfin Banking Corporation in an a deliberate fraudulent effort to hide the illegal take over of Century – CFX Bank assets and network.

23 - Specifically the assets below have been stripped from CFX Bank and transferred into Interfin Banking Corporation. IT and Computer Systems
- MoneyGram Money Transfer Franchise and System
- Branch Network
- Customers , clients and loan Book
- International Correspondent Bank Network
- Management and Staff
- Leases, Contracts and general goodwill
- Buildings and offices
- ZSE Listing Spot

24 - Interfin Bank Directors led are getting increasingly desperate to hide their tracks on the illegal and irregular take over of Century – CFX Bank assets which were illegally transferred into Interfin Bank and rebranded Interfin Banking Corporation.

25 - Their lastest stunt of claiming to “liquidate“ CFX Bank is one such effort to conceal their fraudulent take over of Century – CFX Bank assets and stealthily transferring them into Interfin Bank and rename the resultant entity Interfin Banking Corporation.

26 - After claiming a successful merger as anticipated in this report by Dumisani Ndlela http://www.financialgazette.co.zw/companies-a-markets/4525-cfx-fs-to-lose-bank-for-bigger-entity.html in June 2010 only 9 months later CFX Bank now re-branded Interfin Banking Corporation is being liquidatedhttp://www.newsday.co.zw/article/2011-03-14-cfx-to-windup-operations .

27 - Interfin owes me and other contributories US 15.4 million for the 309 million shares fraudulently converted from Century Bank into CFX Bank then Interfin Banking Corporation. Interfin Bank Directors and Shareholders are trying to escape paying this liability by claiming CFX Bank is being liquidated.

28 - Interfin Holdings limited and Interfin Banking Corporation Directors continue to mislead the public and other stakeholders by devising fraudulent schemes as a way to avoid settling what is due to Gilbert Muponda and ENG Capital contributories, shareholders and Directors.

29 - The fraudulent attempt by Interfin Holdings Directors to mislead the investing public and depositors that the ownership dispute will disappear just because they are attempting to fake a liquidation of a Bank whose assets they have transferred into another entity is totally irresponsible and disingenuous .

30 - Interfin Banking Corporation Directors seem to be practising moral flexibility whilst bending rules and regulations to conceal their prior knowledge of a legitimate claim which they with held informing their employers who are the Investing public who are protected by the ZIMBABWE STOCK EXCHANGE ACT Acts 27/1973, 24/1975, 15/1981, 20/1984; R.G.Ns 54/1975; 1135/1975, S.Is 468/1979, 236/1980.

31 - High Court Case HC-6244-04 was filed in 2004 and its still pending before the courts. Yet Interfin Banking Corporation Directors pretend there was never any challenge to their illegal and irregular grabbing of Century/CFX Bank.

32 - By will fully and deliberately misleading the Investing Public in violation of the ZSE Act Interfin Banking Corporation is an organization that has re-defined the definition of corruption , deceit and concealment of material information from Investing public and Regulatory Authorities.

33 - The liquidation of CFX Bank Limited should therefore be held back until such a time that HC 6244-04 is finalized. Interfin Bank Directors are seeking to hide their tracks and creating a very complex and complicated web of mergers and de-mergers and liquidations and re-structurings which will conceal their illegal and irregular take over of Century/CFX Bank assets.


34 - I make this affidavit in opposing the Liquidation of CFX bank Limited before High Court Case HC 6244-04 is finalized, and for no illegal or improper purpose.

RBZ on the right path with Gold backed Zimbabwe dollars Part 1 of 3

RBZ on the right path with Gold backed Zimbabwe dollars Part 1 of 3

The recent proposal by the Reserve Bank of Zimbabwe Governor for the introduction of a Gold backed Zimbabwe Dollar is an idea whose time has come. If implemented properly the Gold backed Zimbabwe dollar will resolve the liquidity crisis currently ravaging the sanctions hit economy. In light of Global financial crisis and targeted sanctions Zimbabwe is effectively barred from accessing any meaningful lines of credit and liquidity crisis will persist if the domestic capital market is not re-activated with the introduction of a Gold or Precious-Metal backed Zimbabwe dollar.

There is need to avoid Quasi Fiscal Activities and excessive printing of money which accelerated the demise of the previous dollar. The country has started to generate meaningful revenues with Zimbabwe Revenue Authority regularly outperforming revenue collection targets. Previously the Government had been forced to print money to finance everything. This is no longer necessary given the economic recovery and the discovery of Diamonds. The revenue from Diamonds can also be used to build the 6 months import cover and stock up Gold reserves to support the Gold Backed Zimbabwe dollar as proposed by the Reserve Bank of Zimbabwe Governor.

The Gold backed currency is based on the premise that the central bank hold a large amount of gold (or other precious metal) in relation to the paper money that they issue .That means if the Country doesn’t have any gold reserves not currency can be issued, this eliminates the normal inflationary pressure that come from modern FIAT money.

Zimbabwe has been systematically been excluded from the International credit system specifically because of the ZIDERA Act passed by the US. The act makes it illegal for any US national or Entity do transactions with certain entities or individuals in Zimbabwe .This affects various Institutions such as the World Bank ,IMF, IFC ,ADB etc where US representatives can not vote in favour of any credit to Zimbabwe designated nationals and entities or entities linked to them. This creates a huge political risk premium which make International banks hesitant to grant lines of credit to Zimbabwe and Zimbabwean Institutions.

This situation effectively blocks these Institutions do any meaningful business with Zimbabwe as the country’s political risk is magnified by have many leading figures being designated nationals. This lack of access to International credit markets has become very clear through out the Economy with Banks failing to grant any medium to long term loans. This is partly causing the mini-financial crisis rocking Zimbabwe’s banks as they fail to get reasonably priced funding. Its widely reported that Banks are lending at 40 to 60 % per annum which is way to high an interest rate to give to an legitimate business transaction .This has created a very high default risk and forced banks to avoid lending. This illiquidity needs to be addressed through introduction of a Gold Backed Currency.

Modern currency is basically paper money backed by the country’s revenue generation capacity and assets. The US is the largest holder of gold reserves. How much of this is still in Fort Knox PHYSICALLY and not just on paper is another question as much gold is loaned out for the whopping sum of 0.20%! In essence the US has sold a lot of its gold into the market through gold leasing (even though it still shows up on the central banks books as a asset (accounts receivable)).This partly explains why the US$ is still the world’s reserve currency since the USA holds the largest amounts of Gold even though its exact quantity remains

In foreign exchange, no major currency is considered to be as safe and stable as the Swiss Franc. The country's centuries long policy of political neutrality as well as the fact that 40% of its currency reserves were previously backed by the precious metal, contribute to Swiss's image as “liquid gold”. The proposed Gold backed Zimbabwe dollar can in fact be based on the same format .

Canada and Australia possess large reserves of precious metal and both countries have very strong, well-developed mining sectors. Australia is the world's third largest exporter of gold with mining accounting directly for approximately 8.5% of its GDP. Canada is the world's third largest producer of gold. These 2 countries have strong economies and currencies. Whilst Zimbabwe has huge Gold and other mineral reserves these have been properly leveraged out to create liquidity in the country’s Economy. There is need for Zimbabwe to move away from total dependency on a foreign currency whose economy has nothing in common with Zimbabwe’s.

The Economy and Industry is currently reportedly operating at approximately 45 -50 % of capacity. This is significantly higher than the 10-20% capacity utilization before the introduction multiple currencies in 2009.Now the multiple currencies have achieved their main intended purpose which was to stabilize the Economy. This goal has now been achieved and the next phase which is growth requires the use of a softer currency which closely mirrors the country’s macro and micro economic conditions and the US$ can be used in its traditional sense as a foreign currency but not to permanently replace the Zimbabwe dollar.

Gilbert Muponda is CEO of GMRI Capital .He can be reached at gilbert@gmricapital.com
Skype ID - gilbert.muponda
Website - www.gmricapital.com
Face book -http://www.facebook.com/GMRICAPITAL

ENG to list on ZSE

By Darlington Musarurwa
ENG Capital Holdings, which faced the possibility of closure after the 2004 local banking crisis, is considering listing on the Zimbabwe Stock Exchange (ZSE) in the next 18 months in a process that is expected to raise an estimated US$5 million.

The holding company’s investment and asset management arms were placed under voluntary liquidation in February 2004.
However, liquidator Mr Reggie Saruchera, managing partner of Grant Thornton Camelsa, noted that the assets of the liquidated firms were actually in excess of the liabilities.


In an interview with The Sunday Mail Business last week, ENG Capital Holdings co-director Mr Gilbert Muponda said the company is planning to allocate between 5 percent and 10 percent of shares to its creditors and clients.

He also indicated that the listing is not being pursued to raise money but to “broaden and strengthen our shareholder base”.


“Our main reason to seek a ZSE listing is not to raise money but rather to broaden and strengthen our shareholder base.

“There are people who have been loyal and supportive to ENG Capital since day one and throughout the difficulties, and we firmly believe they should be rewarded with shareholding.

“These include the former ENG creditors who have fully been re-paid, but we still feel they deserve a share allocation. In addition, there are well-wishers and sympathisers like the close to 10 000 Facebook friends and fans on my account and the ENG account who have been supportive and shown great loyalty under very challenging circumstances.

“These individuals deserve an allocation of shares to share in the growth.

“So, 5 percent to 10 percent of the company will be allocated to these groups as a gratuity for the unwavering loyalty.
“We intend to list on the ZSE within the next 18 months, most likely via a market introduction. At this stage it’s unclear how much we will seek to raise but a general estimate is around US$5 million depending on market conditions given how illiquid the market is,” said Mr Muponda.


It is believed that initial valuations of the excess assets have indicated that there is sufficient value and operation capacity to meet and exceed all the ZSE listing requirements.

Also a local financial institution has been appointed lead financial advisor to handle the proposed listing of ENG.
Presently, ENG Capital has engaged the Reserve Bank of Zimbabwe and other regulatory authorities in an attempt to resume its business in Zimbabwe, building on the excess assets that were returned to the directors and shareholders.

It has since been established that Allied Conveyors, a firm which manufactures mining equipment for both the local market and the region, has been handed over to the directors.

Despite pursuing a listing on the local bourse, ENG contends that it must be given back its bank, which has since been merged into Interfin Banking Corporation.

According to the ENG boss, the merger of Century Bank, which was an ENG subsidiary, with other financial institutions was irregular and illegal since it was in contravention of the Anti-Corruption Act of Zimbabwe.

Added Mr Muponda: “CFX Bank was a product of an irregular and illegal merger between Century Bank (an ENG subsidiary) and CFX Bank. I challenged that merger on various grounds highlighting its illegality and irregularity through High Court case HC 6244-04.

“My co-director, Nyasha Watyoka, supported this motion by filing a supporting affidavit. We and our lawyers — Messrs Ziweni and Company — were specified as a way to incapacitate us from completing HC 6244-04.

“As you are aware, according to the Anti– Corruption Act of Zimbabwe, assets of specified persons cannot be legally sold, bought or disposed of as they are part and parcel of an investigation and evidence in legal proceedings.


“In short, according to the Zimbabwean law, you cannot sell assets which are subject to legal proceedings which assets would be required as evidence in those proceedings.”
ENG is still challenging the process in the courts.


The Affirmative Action Group (AAG) recently urged the central bank to reinstate the ENG licence.
In the aftermath of the banking crisis, most of the banks whose balance sheets were considered to be wobbly were placed under curatorship.


Trust Bank, Royal Bank, Time Bank and Barbican Bank have been re-licensed.
Royal and Trust Banks have resumed operations while Time Bank and Barbican Bank are still making preparations to open their doors to the public.- The Sunday Mail

ENG Capital Holdings Limited Public Notice

ENG Capital Holdings Limited Public Notice

Due to the liquidity crunch and financial crisis of 2003 and 2004 which affected the whole Zimbabwe financial market ENG Capital and many other financial services firms were negatively affected.
1- On 18 February 2004 The High Court of Zimbabwe at Harare Case HC 145-04 and 244-04 was granted placing ENG Capital Investment P/L and ENG Asset Management P/L into voluntary liquidation as a way to secure the firms’ Creditors. This action did not affect or include ENG Capital Holdings Limited which was the main holding Company.



2- ENG cleared all debts after the liquidation of the company its subsidiaries above. Some of the assets in excess of the claims made were returned to the Shareholders, Contributories and Directors. This has been confirmed by the liquidator, Mr. Reggie Saruchera, Managing Partner of Grant Thornton Calmesa. Further, we have copies of the High Court papers declaring that all the ENG’s past and present and future debts have been fully paid which are available for inspection at the High Court in Harare.



3- The final liquidation and distribution account was approved by the Master of High Court after it had laid for inspection without any objections. The record finished laying for inspection on 31 October 2008. Master of High Court issued the relevant documents confirming all debts had been cleared.



4- A notice in terms of Companies Act section 281 was published in the Zimbabwean Government Gazette. After the approval by the Master of High Court the liquidator handed back an operational company known as Allied Conveyors P/L to ENG Investments P/L Shareholders and Directors since it was excess to requirements to meet creditor claims. This confirmed that ENG Capital Investments was solvent and met all its obligations.



5- On 15 July 2010 The High court of Zimbabwe at Harare High Court Case HC -6086-09 confirmed that ENG Capital and its directors had “satisfactorily liquidated all debts past, present and future accumulated by the Company.”



6- The High Court Case HC 6086-09 also ordered the return of the following vehicles to ENG Capital Shareholders, Directors and Contributories ;

- Mitsubishi RVR – Registration – 792 -035 G

- Mercedes Benz C 320 Registration – 793 – 699 H

- Mercedes C 180 Registration - 778 – 980 R

- BMW Z 3 Registration – 740 372 B




ENG Capital Limited has engaged the Regulatory Authorities on the way forward to resume its business in Zimbabwe building on the excess assets which were returned to the Directors and Shareholders. A leading Zimbabwe Bank has been appointed Lead Financial Advisors to handle the proposed listing of ENG on the Zimbabwe Stock Exchange in line with commitments being made to Regulatory Authorities to broaden ENG shareholder base.

ENG Capital Limited Directors, Shareholders and Contributories would like to thank all regulatory Authorities who assisted in the process particularly Ministry of Finance , the Attorney General’s Office, the High Court, Zimbabwe Stock Exchange, Ministry of Justice ,Ministry of Home Affairs (Co-Ministers) and Reserve Bank of Zimbabwe.

25 April 2011
ENG Capital Holdings Limited - Directors, Shareholders and Contributories
Website ; www.engcapital.ca SKYPE ID – eng.capital

Zimbabwe cant afford the ban on used car imports

Zimbabwe’s economic and financial situation cant afford the ban on used car imports which is due to become effective at the end of June 2011.Whilst theoretically the idea seem noble and with good intentions the country is suffering from severe liquidity crisis and very low salaries with some workers reportedly earning as little as $ 150 per month. This makes it impossible for such an employee to ever save enough money to ever buy a car with new cars priced from around $ 20,000.

In Africa and Zimbabwe generally a car is a very important asset which every family should be in position to acquire. This is mostly to do with the unreliable public transport systems .Particularly the transport system to visit the rural areas in many cases requires cars and the new regulations just about makes it very difficult for many families to be able to buy a car.

The main theory advanced is that the imports are hurting local car industry which is also based on imports given that Zimbabwe does now have an indigenous car making company. This argument of trying to protect few big importers of new cars or car kits is ruinous in that it condemns thousands of other individuals who have been importing cars over the years and these cars including commuter omnibus minibuses have served the country’s needs at an affordable price.

The second theory that imported reconditioned cars are past their life since they would have been fully depreciated in accounting terms totally misses the point. There is a huge and material difference between a car’s accounting life (book value) and its economic value according to its Net Present Value (NPV) derived from its discounted cashflows (DCF) based in cash generated or cash saved through the use of the car over its usable life. Under most accounting systems a car would have a maximum life of about 5 years which is just a quarter of its economic life of 20 years (the period most cars are in usable condition).

It is therefore very unrealistic and short-sighted to ban imports of cars just basing the decision on one variable i.e the accounting life of the car. This totally ignores its economic life which is more practical and more important particularly given how Africans and Zimbabweans have become very resourceful in extending car lives given the general resource shortage.

In many advanced countries cars are on the road well into 20 years after first year as new. The financing systems are in place which allow people to replace cars more often as this is a very well supported industry. People are given incentives to replace their cars sooner because these countries can afford it plus this acts as stimulus for their car industries. This explains why the governments of Canada and USA took bold steps to save General Motors and Chrysler ,this was to protect the industry.

In Zimbabwe’s case that industry is actually stronger on the importing and repair side and as such the Goverment policy should be loosening import constraints to allow more cars to be imported.This will reduce car prices and allow people to replace their cars sooner and slowly eliminate the much older and dangerous cars off the road as recent imports will be cheaper and available.The proposed ban is therefore a step in the wrong direction in terms of solving old car and dangerous car problem on Zimbabwe’s roads.

The Government Gazette on April 1 2011 of Statutory Instrument 44 of 2011 (2) section 1 (2) ("Title and date of commencement of the Road Traffic (construction, equipment and use) Regulations, 2010, published in Statutory Instrument 154 of 2010 as amended by the deletion of 1st of December, 2010"), and the substitution of 1st of July, 2011.

Government in September last year gazetted Statutory Instrument 154 of 2010 (Road Traffic Construction), which provided that vehicles that have been on the road for at least five years would not be allowed to enter the country after March 31 this year.

The statutory instrument says in part: "No person shall import any vehicle for registration and use on any road in Zimbabwe if the year of manufacture from the country of origin is more than five years. Provided that this shall not apply to any motor vehicle registered in Zimbabwe before the 31st of March, 2011."

The statutory instrument also stipulates that left-hand drive vehicles would not be registered after March 31 2011 and would be banned from Zimbabwean roads by December 31 2015. Left-hand drive vehicles are considered technically unsuitable for Zimbabwe's roads. The ban, which was initially set for March 31 this year before being extended to June 30 is now set to be effected end of June this year.

For a country which does not have a solid and reliable public sector transportation system the availability of cheap ,imported cars is necessary especially to assist small start up businesses. This sector is based on being able to improvise and being resourceful and having a small run about car is one of those “must have” for a small business still starting out.

The move to ban imports is therefore undesirable and counter productive in terms of making it very difficult for start ups to acquire cars which they require for day to day running of a business. It is interesting to note that business lobby groups such as CZI ,AAG and civil organizations such as ZCTU and ZIMTA have been rather silent over the issue even though their members will be affected by the ban.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital www.gmricapital.com

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Interfin Banking Corporation fraud on CFX Bank unpacked 2 of 5

Interfin Banking Corporation fraud on CFX Bank unpacked 2 of 5
Interfin Bank Directors led by MD Raymond Njanike and Chairman Farai Rwodzi are getting increasingly desperate to hide their tracks on the illegal and irregular take over of Century – CFX Bank assets which were illegally transferred into Interfin Bank and rebranded Interfin Banking Corporation. Their lastest stunt of claiming to ``liquidate`` CFX Bank is one such effort to conceal their fraudulent take over of Century – CFX Bank assets and stealthily transferring them into Interfin Bank and rename the resultant entity Interfin Banking Corporation.

After claiming a successful merger as anticipated in this report by Dumisani Ndlela http://www.financialgazette.co.zw/companies-a-markets/4525-cfx-fs-to-lose-bank-for-bigger-entity.html in June 2010 only 9 months later CFX Bank now rebranded Interfin Banking Corporation is being liquidated http://www.newsday.co.zw/article/2011-03-14-cfx-to-windup-operations . This only proves underlying ownership dispute between ENG Capital ,Gilbert Muponda and Interfin Bank alongside MD Raymond Njanike and Chairman Farai Rwodzi .

If the merger was successful why would Interfin Directors led by MD Raymond Njanike and Chairman Farai Rwodzi claim to liquidate CFX Bank when in reality CFX Bank is now Interfin Banking Corporation since all its branch network and asset have been transferred into Interfin Banking Corporation and rebranded accordingly in an effort to hide the fraudulent seizure of Century Bank which was renamed CFX Bank then now rebranded Interfin Banking Corporation. This is an effort to avoid paying legitimate liabilities owed to ENG Capital for its assets illegally incorporated into Interfin Banking Corporation.

There can be no talk of liquidating CFX Bank since CFX Assets have been merged with Interfin and effectively transferred into Interfin Banking Corporation and rebranded Interfin Banking Corporation in an a deliberate fraudulent effort to hide the illegal take over of Century – CFX Bank assets and network.

Specifically the assets below have been stripped from CFX Bank and transferred into Interfin Banking Corporation. IT and Computer Systems
- MoneyGram Money Transfer Franchise and System
- Branch Network
- Customers , clients and loan Book
- International Correspondent Bank Network
- Management and Staff
- Leases,Contracts and general goodwill
- Buildings and offices
- ZSE Listing Spot

CFX Bank had the most advanced IT and Computer System in Zimbabwe banking and this has been looted by Interfin and transferred into Interfin Banking Corporation.
The ENG Capital claim remains focused on MD Raymond Njanike , Chairman Farai Rwodzi , Interfin Holdings limited and Interfin Banking Corporation since they are they ones who took over the assets and liabilities of CFX –Century Bank. Their fraudulent attempt to mislead the investing public and depositors that the ownership dispute will disappear just because they are attempting to fake a liquidation of a Bank whose assets they have transferred into another entity is totally irresponsible and disingenuous.
MD Raymond Njanike , Chairman Farai Rwodzi , Interfin Holdings limited and Interfin Banking Corporation continue to mislead the public and other stakeholders by devising fraudulent schemes as a way to avoid settling what is due to Gilbert Muponda and ENG Capital.

Interfin Bank and its Directors led by Farai Rwodzi are guilty of misleading customers and investing public into buying worthless Interfin Holdings shares .Interfin owes Gilbert Muponda and ENG Capital US 15.4 million for the 309 million shares fraudulently converted from Century Bank into CFX Bank then Interfin Banking Corporation. And they are trying to escape paying this liability by claiming CFX Bank is being liquidated.


Interfin Bank Directors particularly MD Raymond Njanike and Chairman Farai Rwodzi are acting irresponsibly by failing to handle a legitimate claim and responding by plastering a cracked wall which tantamount to the proverbial ostrich putting its head in the sand.

Interfin Banking Corporation fraud on CFX Bank unpacked - 1 of 5

Interfin Baning Corporation fraud on CFX Bank unpacked - 1 of 5

According to All Africa website CFX Bank merged with Interfin Bank and the merger was approved http://allafrica.com/stories/201011180051.html . However if the merger was approved by all the regulatory Authorities then why would Interfin try to liquidate a Bank which it merged with. It clearly doesn’t make any sense to liquidate a Bank which has already been merged with another . Its not legally possible and its practically fictitious to claim to liquidate a Bank which has already merged with another resulting in the formation of a new entity.

Interfin Banking Corporation Zimbabwe is a product of a fraudulent merger between Interfin Merchant Bank and CFX Bank which was subsequently renamed Interfin Banking Corporation after another irregular merger between Century/CFX Bank Limited and Interfin Bank Zimbabwe. Any further transaction or re-organization or restructuring will not change the facts that Interfin Banking Corporation has a disputed ownership due to the presence of CFX Bank assets in its DNA composition.


The so-called liquidation of CFX Bank is nothing but a fraud being perpetrated by Interfin Holdings Directors led by MD Raymond Njanike and Chairman Farai Rwodzi. There is no liquidation taking place whatsoever since all the CFX assets have already been ``merged`` and transferred into the new entity now renamed Interfin Banking Corporation. This is an effort to hide the tracks of the original fraud which is being challenged under High Court case HC 6244-04.This is an effort to escape legitimate liabilities brought about by Interfin`s unwise and greed move of trying to grab CFX Bank assets.

Interfin can not fully capitalize a Bank and then liquidate the same bank all within a year .According to another report titled Interfin Holdings Fully Capitalises CFX Bank Published on 13 January 2010 - http://allafrica.com/stories/201001130248.html . This does not add up and only provides further evidence that Interfin Banking Corporation are involved in fraudulent transaction and the various movements are meant to hide the tracks and cleanse an otherwise illegal and underhand deal.
There can be no talk of liquidating CFX Bank since CFX Assets have been merged with Interfin and effectively transferred into Interfin Banking Corporation and rebranded Interfin Banking Corporation in an a deliberate fraudulent effort to hide the illegal take over of Century – CFX Bank assets and network.
Specifically the assets below have been stripped from CFX Bank and transferred into Interfin Banking Corporation. IT and Computer Systems
- MoneyGram Money Transfer Franchise and System
- Branch Network
- Customers , clients and loan Book
- International Correspondent Bank Network
- Management and Staff
- Leases,Contracts and general goodwill
- Buildings and offices
- ZSE Listing Spot

CFX Bank had the most advanced IT and Computer System in Zimbabwe banking and this has been looted by Interfin and transferred into Interfin Banking Corporation.
The ENG Capital claim remains focused on Interfin Holdings limited and Interfin Banking Corporation since they are they ones who took over the assets and liabilities of CFX –Century Bank. This includes the CFX Bank Holdings Zimbabwe Stock Exchange listing which was taken over and renamed Interfin Holdings Limited all in an elaborate effort to hide the irregular and illegal take over of Century – CFX Bank.

CFX Bank liquidation a clear Fraud by Interfin Banking Corporation Board

CFX Bank liquidation a clear Fraud by Interfin Banking Corporation Board

Over the last 4 months the ENG Capital lawyers and legal Advisors had requested that there be no further statements or public articles regarding the illegal ,irregular and fraudulent merger between CFX Bank and Interfin Bank which was renamed Interfin Banking Corporation. Their hope and expectation was that Interfin Management and shareholders will do the honourable thing and propose a reasonable way forward. Needless to say we were disappointed as the Interfin Board of Directors and Management took our silence for foolishness and proceeded to devise a fraudulent scheme claiming to liquidate CFX Bank knowing full well that CFX Bank assets such as the Moneygram Franchise ,leases, contracts ,goodwill had been spirited into Interfin Banking Corporation. This is disgraceful coming from Bankers who are supposed to be custodians of people`s wealth and savings.

According to the media CFX Bank has been placed into liquidation due the ownership wrangle arising from the High Court case HC 6244-04 which I filed in Zimbabwe. After Interfin Banking Corporation unwisely merged Interfin Bank and CFX Bank and renamed the bank Interfin Banking Corporation they are now fraudulently claiming to be liquidating CFXZ Bank when all the CFX Bank assets such as its MoneyGram Franchise, Buildings, contracts ,employees etc have been stripped and transferred into Interfin Banking Corporation which took over Century / CFX Bank ZSE listing and renamed it Interfin Banking.

The so-called liquidation of CFX Bank is nothing but a fraud being perpetrated by Interfin Holdings Directors led by MD Raymond Njanike and Chairman Farai Rwodzi. There is no liquidation taking place whatsoever since all the CFX assets have already been ``merged`` and transferred into the new entity now renamed Interfin Banking Corporation. This is an effort to hide the tracks of the original fraud which is being challenged under High Court case HC 6244-04.This is an effort to escape legitimate liabilities brought about by Interfin`s unwise and greed move of trying to grab CFX Bank assets.

Interfin Banking Corporation Zimbabwe is a product of a fraudulent merger between Century Bank and CFX Bank which was subsequently renamed Interfin Banking Corporation after another irregular merger between Century/CFX Bank Limited and Interfin Bank Zimbabwe.

Interfin Bank and its Directors led by Farai Rwodzi are guilty of cozening customers and investing public into buying worthless Interfin Holdings shares .Interfin owes me and ENG Capital US 15.4 million for the 309 million shares fraudulently converted from Century Bank into CFX Bank then Interfin Banking Corporation. And they are trying to escape paying this liability by claiming CFX Bank is being liquidated.


Interfin Bank Directors particularly MD Raymond Njanike and Chairman Farai Rwodzi are acting irresponsibly by failing to handle a legitimate claim and responding by plastering a cracked wall which tantamount to the proverbial ostrich putting its head in the sand.

Interfin Board and Management are risking shareholder funds and investor funds by their current tough guy mentality.

The claim by ENG Capital and myself against Interfin and its shareholders is indisputable and must be settled. Interfin must not take the silence for foolishness we expect them to act responsibly.


Contact ;
Email; gilbert@gilbertmuponda.com
Facebook: http://www.facebook.com/muponda
Website; www.gilbertmuponda.com


Lawyers in Zimbabwe & Africa

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Tel: 04-759876/7
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Zimbabwe needs stable political and economic environment - Zimbabwe Entrepreneurial Infrastructure Series

In emerging markets such as Zimbabwe the power of entrepreneurship to improve lives is at times limited and hindered due to high political risk arising out of fast moving and unpredictable political developments. Whilst theoretically there are attempts to separate politics from business, finance and investment in reality they are all related and cant be easily separated. Political risk is one of the most important factors affecting the creation of properly developed entrepreneurial infrastructure which Zimbabwe and Africa urgently need.

The country’s political leaders have a specific obligation to establish political and social stability as a first step towards establishing solid entrepreneurial infrastructure. This includes predictable application of rule of law and a stable regulatory environment.

Due to globalization it is critical for any emerging market to seek normal trade relations with other nations especially the developed nations who form the critical markets. Any restrictions such as embargoes or sanctions can negatively affect the entrepreneurial infrastructure and this places an additional burden on political leaders to always act in ways which do not attract embargoes or trade restrictions as this negatively affects the entrepreneurial development potential and hinders economic development.

According to Wikipedia Political risk is defined as “Broadly, political risk refers to the complications businesses and governments may face as a result of what are commonly referred to as political decisions—or “any political change that alters the expected outcome and value of a given economic action by changing the probability of achieving business objectives.” .

Political risk faced by firms can be defined as “the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket factors as macroeconomic and social policies (fiscal, monetary, trade, investment, industrial, income, labour, and developmental), or events related to political instability (terrorism, riots, coups, civil war, and insurrection).” Portfolio investors may face similar financial losses. Moreover, governments may face complications in their ability to execute diplomatic, military or other initiatives as a result of political risk”

For investors, political risk can simply be defined as the risk of losing money due to changes that occur in a country’s government or regulatory environment. Acts of war, terrorism, and military coups are all extreme examples of political risk. Expropriation of assets by the government – or merely the threat – can also have a devastating effect on share prices.

Late last decade Venezuela’s leader Hugo Chavez abruptly announced plans to nationalize CANTV, the local phone company. The Company’s share price collapsed almost 50% before the details of Chavez’s plans or ideas emerged. As in most markets Investors sell first and ask questions later on the exact details of the proposed plan. This situation is very similar to Zimbabwe’s indigenization 51% rule. The rules and regulations have been interpreted and mis-interpreted variously leading to an unease investment atmosphere which has dampened investor sentiment especially on the Zimbabwe Stock Exchange.

Whilst the Minister responsible for the Indigenization rules and regulations Minister Saviour Kasukuwere has issued various statements on the Act the regulations remain mis-understood and are viewed as a significant political threat on potential and current investment. This situation needs to be urgently addressed through highly organized investor road-shows and investment conferences whereby the Minister and other relenant senior officials clearly explain what these rules mean and how foreign investors can feel assured that their investments wont be seized.

These investment road-shows and conferences will also give the Minister and other senior Government officials an opportunity to clarify the current business disruptions and invasions which appear aimed at foreigners. What is the official Government policy on this. And what is Government doing to ensure that these acts and activities will not be taken as officially sanctioned.

In business and investment perceptions count for everything with each day that passes with business disruptions not officially denounced it sends a bad signal to investors and the current efforts to rebrand the country will be viewed as mere sloganeering and lip service.

High political risk makes doing business in a country very expensive and capital comes at a huge premium whilst assets in the country can only be sold at a discount due to the political-risk-premium which investors demand.

Political risk insurance is available against a broad spectrum of risks, including non-payment products for financial institutions, expropriation, war and political violence, cancellation of operating licences, exchange transfer problems, import and export embargoes .This adds to cost of doing business in the country and it discourages entrepreneurs and thus negatively affects the entrepreneurial infrastructure.

All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital www.gmricapital.com
Contact
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www.engcapital.ca

More first generation entrepreneurs required - Zimbabwe Entrepreneurial Infrastructure Series

South Africa, Zimbabwe, Botswana and a several other African countries have come up with various affirmative action programs and broad based black economic empowerment programs (BEE) and indigenization .Given the historical economic imbalances these programs are relevant and imperative for Africa to attain a sustainable economic advancement necessary to uplift the standards of living on the continent.

However the concept of grabbing, seizing and invading businesses can not be mixed with noble broad based economic empowerment program. Africa needs to devise policies which can create entrepreneurial infrastructure which will encourage entrepreneurship and not business invasions, seizures or grabbing. This challenge requires more first generation entrepreneurs.

First generation entrepreneurs (FGE) are the ones who break the ground within their social grouping (could first from family, class, neighbourhood etc) and enter into business. They do not inherit the business from family (father ,mother or rich uncle etc).These are the individuals who have a dream and pursue it and do whatever it takes to set up their business from scratch. These are the people who are required for the economic empowerment to succeed. It cannot succeed by just taking established businesses and dishing it to those who are “deemed to qualify” under whatever criteria.

Setting up a business from scratch is not that easy, some people may even want you to fail for no apparent reason. And yet others when u succeeds may want to grab, seize or invade your business. Part of the entrepreneurial infrastructure means the provision of a secure legal environment where contractual obligations can be enforced and property rights respected. This will encourage other entrepreneurs.

First generation entrepreneurs provide next generation of growth companies which are different from established businesses. Most first generation entrepreneurs amplify the economic and social impact of important new ideas and discoveries which are converted from dreams into reality and new wealth.

African is in need of first generation entrepreneurs who are forced to come up with their own roadmaps to success as they create a path which no-one close to them has travelled. In the process they create a road map for the future generation to follow. This process becomes part of the entrepreneurial infrastructure which makes it easy for others within that community or family to enter into business.

Zimbabwe in particular and Africa in general is in desperate need for First generation entrepreneurs are ready starting from scratch and go on to translate their dreams into reality. This trait of starting things from scratch can be learnt and be taught and can rub off to become cultural and become a standard. This is what comes naturally from having well developed entrepreneurial infrastructure. From an early age young individuals are groomed to become entrepreneurs and learn from others around them who are part of the entrepreneurial infrastructure. This does not happen by accident but rather through careful and deliberate policy formulation and implementation which aims at creating a generation of globally competitive entrepreneurs who appreciate to start a business from scratch and see it become a world class brand.


Successful entrepreneurs need courage and have to have the mentality to do something that's never been done before and have fun whilst doing it. The mere fact of invading or seizing someone’s business indicates lack of entrepreneurial infrastructure and entrepreneurial spirit. Whilst a business can be legally take over let it be the exception rather than the national motto which specialize in taking over businesses. The national motto should be to create businesses from scratch with the state creating the conducive environment as part of the entrepreneurial infrastructure

A properly developed entrepreneurial infrastructure provides business advice and mentorship, market intelligence, entrepreneurship education, seed capital and access to critical talent, customer and partnership networks and joint venture opportunities which help aspiring entrepreneurs realise their dreams.

Several studies indicate that people who grew up within and around families who owned a business have a higher chance to own a business themselves. This is true in Zimbabwe and Africa generally. A majority of entrepreneurs grew up with and around business minded people and naturally certain skills and capital come natural to them. This is part of the entrepreneurial infrastructure which is required but it all starts with the first generation entrepreneur who creates a path that becomes a roadmap for future generations.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capitalwww.gmricapital.com
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www.engcapital.ca

Women entrepreneurs must be supported Zimbabwe Entrepreneurial Infrastructure Series

Africa’s economic independence aspirations require more women participants to be involved in business ownership and entrepreneurship. Normally innovation drives entrepreneurship which starts first with the vision then the mission which leads to the creation of a business. There is no natural law which excludes women in business but rather social construction and family values have served to exclude women from benefiting from entrepreneurial infrastructure to establish their own businesses.

Globally in general and in Africa particularly historically, entrepreneurship has been a male-dominated pursuit which has been supported by centuries of social construction values which have sought to exclude women from meaningful economic activities. Zimbabwe should take a lead in the current economic empowerment exercise and ensure women are not relegated to spectators but significant participants.

In a family set up entrepreneurial talent, spirit and skills may be possessed by a woman who may be a sister, mother or daughter. This calls for the male relatives who may be the brother, husband, father to be prepared to support the female relative pursue her entrepreneurial dreams. The support to the female relatives is critical for the woman entrepreneur who may face many other hurdles in the business world including discrimination.

The keys to growing a family business support and maintaining healthy family relationships are trust, strong family values and open communications. In Zimbabwe due to our cultural upbringing man normally take the lead in most things but in the entrepreneurial endeavour in the family set up it may be best that the man play the supporting role whilst the woman is the “main actor”.

A lacking important part of the entrepreneurial infrastructure is to empower economically marginalised women to empower themselves by offering practical resources which make it possible for women to enter business and succeed. This requires an adjustment on how woman entrepreneurs and business woman are viewed.

The family system led by the male spouse has to play a positive role in increasing business confidence, facilitating equal access to economic and productive resources for women, and to facilitate poverty eradication, utilising gender empowerment principles.


Before an individual takes the plunge to own a business based on what could be one’s passion, hobby and possibly business skills it takes a lot of courage, determination and the acceptance of continuous hard work. In addition it requires solid support of the whole family for the business to succeed. This challenge is even higher for a woman since in the African society woman have historically played a more reserved role in the family’s economic affairs.

As part of the Zimbabwe and Africa entrepreneurial infrastructure there is need for policy shift which helps set up organizations that provide business training and networking opportunities for women of diverse occupations and backgrounds. This is in recognition that women are capable entrepreneurs if given the support and resources needed to start a business. The general reduced numbers of women in business is a clear disadvantage for Africa to compete at a global scale since almost half of the population is arguably excluded from accessing the limited entrepreneurial infrastructure.

At times role confusion in family and business can cause communication problems that can hurt the business and wreck family relationships. This is normally a result of poor communication at the initial stages when one partner decided to enter into business with the other not being so supportive or “understanding”. One possible way to address this is for families to focus on how everyone can benefit if the business succeeds. Then support whoever has the passion, skills and spirit for entrepreneurship even if that person happens to be a woman.


Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
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The funding Challenge - Zimbabwe Entrepreneurial Infrastructure Series

Africans and Zimbabweans have been involved in business transactions for centuries somehow they have been overtaken by the rest of the world in terms of building successful businesses. This trend can be reversed through careful steps aimed at promoting and supporting entrepreneurship. When starting a business family support is critical for success.

If married then spousal support is critical for the venture to succeed. This support is critical because those immediately close to the entrepreneur have the burden of being forced to support someone’s “dream”.

Any entrepreneurial adventure will require some form of capital. In Africa generally and Zimbabwe in particular capital is really hard to come by even if one has a solid business proposition.

The starting point for the entrepreneur should be to start as early as possible to solicit support of those around you. Simply start sharing your general ideas about your business “dream” with those around you. Some will be encouraging but most will discourage you but don’t be discouraged instead try to pick their brains and understand their source of fears which will normally help you properly plan for the rocky road ahead.

If you listen carefully to the discouraging voices within that are some of the answers that will see your dream come true.

Family support is critical as the entreprenuer is normally faced with limited resources and has to tap into family or relatives resources to see the vision develop into a viable business. When entrepreneurs start their venture normally they resort to “ bootstrapping finance” which is entirely based on family or close friends support.

According to investopedia “A situation in which an entrepreneur starts a company with little capital. An individual is said to be bootstrapping when he or she attempts to found and build a company from personal finances or from the operating revenues of the new company.”

Entrepreneurs have long relied on family for help in launching new businesses, often after exhausting other resources such as personal overdrafts and personal savings, and before seeking out for bank loans or other institutional funding.

Compared to using bank loans or Angel investor funds, bootstrapping can be beneficial because the entrepreneur is able to maintain control over all decisions which allows them to shape the company. The risk however, this form of financing may place increased unnecessary financial risk on the entrepreneur. Additionally bootstrapping may not provide enough capital for the new venture to become successful at a reasonable pace especially in Zimbabwe with its fast changing operating environment.

Obviously bootstrapping involves increased risk for the founders, the absence of any other shareholder gives the founders more freedom to develop the company in the best direction they see fit with quick decision turn around. Most successful companies were founded this way with the entrepreneur starting off from humble beginnings until the business concept could attract additional capital which normally comes with additional conditions and dilution of control.

It must be noted bringing in outsiders can be beneficial. Outsiders can provide financial oversight, accountability for carrying out tasks and meeting important targets and milestones, and many can even bring highly valuable business contacts and experience to the table which will enable the business to develop much faster.

Once the entrepreneur starts using other people’s money there is greater need for accountability and responsibility. This includes having reasonable forecasts and expectations which should be clearly and accurately communicated to those who would have given you support or whom the entrepreneur is seeking funding from.

It is always a good idea to make a point of clearly explaining to friends and relatives that you couldn't guarantee their investments would pay off and that there is chances your business may fail even though you feel the venture is viable . The entrepreneur has to educate people on the risk profile of the business. Do not didn't accept funding from people who didn't understand that.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
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Direct Education system towards Entrepreneurship- Zimbabwe entrepreneurial infrastructure series

One of Africa’s leading science and business universities National University of Science and Technology (NUST) in Bulawayo Zimbabwe pioneered the development of widespread acquisition of practical skills through the implementation of the degree programs with a mandatory one year industrial attachment.

This was a critical and transformational approach to higher education as it immediately equipped students with practical real world work experience and most graduates easily secured jobs after completion of studies. But the times have changed the jobs are no longer readily available therefore Universities need to increasingly focus on moulding students into Entrepreneurs.

This could include creation of technology parks and business incubation centres which will naturally form part of the entrepreneurial infrastructure which is missing in most of Africa generally and Zimbabwe in particular.

According to Wikipedia “Business incubators are programs designed to accelerate the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts. Incubators vary in the way they deliver their services, in their organizational structure, and in the types of clients they serve.”

These services offered by Business incubators are clearly needed and can be offered through-out the country from the various Universities. Universities and Technical colleges must take the lead in this area as graduates transform from job seekers to job creators.

The Zimbabwe Educational system needs to step up and now move with the times and evolve to start churning out graduates who are ready to create jobs and not seek jobs which are non-existent. This is not an easy challenge but it can be done over the medium term with proper planning and strategic focus.

Zimbabwe’s educational system needs to be in line with the national vision of economic empowerment and indigenization. The system needs to be properly developed and enshrine values which do not encourage looting, grabbing or seizing businesses as a way to acquire wealth. This has to be done at an early age and through out the educational system which will make it clear that economic empowerment is here to stay but it must be achieved to legitimate and acceptable means which individuals properly equipped with entrepreneurship skills backed up by an appropriate entrepreneurial infrastructure.

Some of the challenges as witnessed by business invasions and enterprise disturbances are a result of limited information and education on how one can legally and legitimately build a business even when faced by an uneven playing field.

It is clear there are informational gaps and execution shortfalls which has led to a majority of individuals to believe that the only way into big business is through political patronage and other dubious means. These gaps have to be addressed in form of proper education curriculum which focuses on creating entrepreneurial candidates who will become part of the entrepreneurial infrastructure.

Such educational programs can not assume that everyone can be an entrepreneur but should give every student a chance to choose that path and also acquire the critical entrepreneurial skills at early stages such that once one completes studies they have all options on the table.

Entrepreneurial skills are now a critical survival skill in the current Zimbabwe especially given the drive towards economic empowerment. The idea of economic empowerment is ideal and noble but can not succeed if the potential beneficiaries are not properly trained and equipped to handle the challenges that comes with running any enterprise.

Any effort which ignores the need for the educational system to close informational and skills gap will result in the program failing and creating a vicious poverty circle instead of empowering.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
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You don’t have to be old to start a business!! - Zimbabwe entrepreneurial infrastructure series

Entrepreneurs are a source of great economic activity and prosperity in many communities and nations. Africa needs to do a lot more to develop entrepreneurship from a very early age.

There has been a mistake to try to link age to competence or success when it comes to business and this has resulted in Africa in general having depressed entrepreneurial activity due to the open hostility shown to young entrepreneurs in Africa generally and Zimbabwe in particular. There is a general tendency to try and shut out and block young people who are seeking to enter into business. Often one is encouraged to seek a job and not to create one.

An entrepreneur is widely defined as a person who has possession of a new enterprise, venture or idea and is accountable for the inherent risks and the outcome. That individual is prepared to launch a new venture or enterprise and accept full responsibility for the outcome ,accepting both the risk and the reward. Such people are in great demand in Africa generally and Zimbabwe and South Africa in particular due to the macro-economic conditions prevailing in those 2 countries which require entrepreneurs to create new ventures.

It is important for Zimbabweans from a very early age to be properly equipped with necessary entrepreneurial skills and spirit backed by the necessary entrepreneurial infrastructure needed to ensure success. From an early age it must be instilled that value and wealth is created from utilizing resources and skills around you and not from looting , grabbing or invading.

There a certain common words frequently used to describe individuals with entrepreneurial flair and spirit these include mavericks, innovators, failures, Tycoons, pathological liars, risk takers, self made business people, successful, charismatic. It is clear in these words age really has nothing much to do with it. In short you don’t need to be any particular old age to start a business and succeed.

There are well known qualities which are usually found in most entrepreneurs ,these include creativity, risk taking, uniqueness, business savy, developing potential, adaptability. It is these qualities which makes one a successful entrepreneur and not one’s age. Age clearly has no direct bearing on the success of true entrepreneurs even though experience may be relevant. One tends to get more experience the older they get but that alone can not make one a great entrepreneur.

African Governments should devise policies to develop a culture of entrepreneurial thinking. This can be done in a number of ways: by integrating entrepreneurship into education systems, formulating laws which legislate to encourage risk-taking ,provide funding , and national campaigns which are targeted at the young and youthful who form a pool of potential entrepreneurs and generally create the required entrepreneurial infrastructure.

It appears there are two natural age peaks correlated to entrepreneurship – mid to late twenties and mid-forties ,even though there is no general rule. Some studies note that being a younger founder greatly improves your chances of success in a venture. It’s normally easier to get free press coverage when you’re younger which gives the individual free publicity and helps build a brand and that encourages people to invest in you or your venture.

According to Wikipedia “Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses (referred as Start-up Company);” .

From the above definition it is clear one must still be very young to take such risks and have the energy and drive to see through an economic adventure meant to create value and wealth. This points to the conclusion that Africa should invest more at a very early age possibly from 9 years old to instil values and the spirit of entrepreneurship in its population.

From a very early age children must be taught and encouraged to become entrepreneurs.
According to various studies and empirical evidence acts of entrepreneurship are often associated with true uncertainty, particularly when it involves bringing something really valuable to the world, whose market never exists.

In addition, even if a market already exists, there is no guarantee that a market exists for a particular new player who is being promoted by the entrepreneur. This indicates that the African society must be willing to teach and accept risk taking as normal and productive behaviour.

If the various Economic empowerment as defined by BEE Laws in South Africa and Indigenization laws in Zimbabwe are to succeed entrepreneurship and business concepts need to become part of the vocabulary and curriculum at very tender age preferably before children enter high school. They need to clearly know that entrepreneurship is acceptable as a way of life and society will accept young people who venture into it and they will be rewarded once they succeed.

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
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Zimbabwe Successful entrepreneurship never an accident - Entrepreneurial Infrastructure Series

The world over including Zimbabwe and Africa Entrepreneurship is rarely a solo enterprise, it requires a solid support ecosystem built to encourage and nurture risk taking and enterprise creation. “Smart” people learn from each other, and an infrastructure for entrepreneurship naturally encourage connection between aspiring entrepreneurs and like minded individuals.

For Africa and Zimbabwe to properly leap into global competitiveness there is greater need to raise awareness of what has been lacking over the last 50 or so years . As an example Ghana and South Korea and Malaysia were almost at equal stages of development 50 years ago .

Yet today they are worlds apart with Korea being home to a host of world leading firms such as Daewoo ,LG, Samsung, Hyundai and many others. Africa has not managed to create such huge corporations despite having serious natural resource base.

Partly the answer lies in the lack of entrepreneurial infrastructure. These are social, economic, and political factors influencing entrepreneurship. These involve creation of an enabling environment and support system to allow entrepreneurs to flourish with minimum hindrance.

This entrepreneurial infrastructure includes:
(a) public resource endowments of basic scientific knowledge, funding mechanisms, and a pool of competent and educated labour,
(b) proprietary research and development, manufacturing, marketing, and distribution functions by private entrepreneurial individuals and firms to commercialize their ideas for profit.
(c) institutional arrangements to legitimate, regulate, and standardize a new ideas (products) goal should be to attract a large number of “smart “ individuals and then to get out of their way and let them focus on building great ventures.

Risk taking will and ability has to be encouraged and nurtured. Unplanned creativity is a natural trait of entrepreneurship which should not be controlled by the state or Government Authority in as far as an entrepreneur is creating an enterprise which provides a service or product that serves a need.

Unplanned creativity can be the most critical driver of economic prosperity success. African governments need to put their faith in the ability of smart people to build their own economic futures through building businesses that serve the community they live in. As noted above smart people learn from each other and through that process new ventures and businesses are formed from simple interaction between smart people who are driven.

Zimbabwe in particular and Africa in general should encourage aggressive and imaginative local entrepreneurs in creating an infrastructure for the new knowledge-based economy. This must be targeted at encouraging local home grown entrepreneurs and not flooding the economy with foreign traders whilst preaching local economic empowerment.

On the cultural front encouraging the development of an entrepreneurial culture, tolerant of risk and cognizant that honourable failure is the price of ambition has to be accepted.

Sound policies and investment in infrastructure attuned to market and environmental needs will have an entrepreneurial return. Entrepreneurial infrastructure encourages and supports creative, innovative behaviour attracts smart, entrepreneurial people.

Once those entrepreneurial people come to live in an area, they will help to maintain and improve upon the “smart” physical infrastructure they need to succeed and connect with other innovative individuals and entrepreneurs to share ideas and encourage each other.

Strong commitment by Business-friendly government and established businesses to support entrepreneurs.

The creation of entrepreneurial infrastructure has the benefit of rubbing shoulders with globally competitive talent. Studies indicate that entrepreneurs who run in packs will be more successful than those that go it alone to develop their innovations.

Whilst the legal framework for Economic empowerment is being put in place there is need for Mentorship programs and entrepreneurship classes in public schools provide other means of connecting entrepreneurial individuals and nurture their talent .

Disclaimer
All information on this site is provided "as is" for informational purposes only, not intended for trading purposes or advice. Prior to execution of any security trade, you are advised to consult your authorized financial advisor to verify the accuracy of all information. Neither GMRI Capital nor any independent provider is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.

This article was prepared exclusively for 3MG MEDIA by GMRI Capital a Division of the ENG Capital Group.
Contact
http://www.facebook.com/engcapital
http://twitter.com/engcapital
www.engcapital.ca