'Zimbabweans lack business acumen'

Published: 30 June 2014

Government has admitted that Zimbabweans generally lack the skills to run businesses despite introducing Indigenisation policy, which stipulates a 49-51% ownership structure between foreign investors and locals respectively.

Deputy Youth Development, Indigenisation and Empowerment minister, Mathias Tongofa told a National Business Council of Zimbabwe (NBCZ), Zimbabwe Agenda for Socio-Sustainable Economic Transformation (ZimAsset) symposium at Chinhoyi University of Technology last week that youths in particular have been found wanting with regards to abilities to properly run businesses, even those acquired under the empowerment law.

"A huge majority have been blessed with more determination than ability to conduct businesses. While the acquisition of much land, property and shares in foreign-dominated firms has given us a lot of advantage in terms of resource ownership, there still remains a critical shortage of business skills and knowledge," Tongofa said.

"To that end, we have ushered in a paradigm shift which recognises the urgent need for capacity building and training so that we may be able to increase the productivity of our resources and maximise on the opportunities that have been availed to us".

The deputy minister said lack of business grooming and etiquette had resulted in still-borne business ventures.

"As a steward for youth development, I want to register my concern with the business conduct of our youths. Many youths and entrepreneurs have started businesses which have eventually not operated sustainably," Tongofa said.

"Many borrowed money from the funding pools which were made available, but to date less than 70% has been repaid."

Provincial Affairs minister Faber Chidarikire concurned with Tongofa that Zimbabweans need business training.

"It takes a lot of skills and training to be able to fully satisfy the challenging demands of an economy that is going through change," Chidarikire said.

"This will increase our knowledge and practical skills to be able to understand the more complicated issues surrounding our economy and how we relate to others in the international markets," he added.
- Tatenda Macheka I Zim Mail