The Sunday Mail
Business Reporter
CONSULTANT and entrepreneur Mr Denis Magaya – the Rubiem Group director – says this is an opportune time for local companies to expand into the region to help funnel liquidity into Zimbabwe.
He said companies need to take the initiative to grab opportunities beyond the borders rather than wait on Government funding in view of the obtaining economic circumstances.
“ICT was generally white-dominated and (Rubiem) saw an opportunity and moved into this business.
“We have spread across the continent after realising that you can’t hunt in your own garden because you have everything that is in there.
“So, why is it that many Zimbabwean companies are not investing in the region to get money in Mozambique, for instance, and the rest of the region?
“I have not seen a sector in the region that is dominated by Zimbabweans yet they are always complaining of liquidity challenges,” said Mr Magaya.
Expanding into the region will expose local firms to almost 258 million potential customers as opposed to about six million economically active Zimbabweans.
Sadc has a GDP estimated at US$471 billion.
Mr Magaya urged entrepreneurs “stop this inward looking perspective and understand that indigenisation should be looked at from the broader context”.
On the Indigenisation and Economic Empowerment Regulations, Mr Magaya said the thrust would get greater traction if it was more of “an African initiative” entailing local companies “going out there and make the money”.
“Let us get our 49 percent out there and bring the money as 100 percent. Let’s follow the money, let us follow foreign direct investment.
“Government does not give you money because it has many things to address and the sooner we get around that the better,” he said.
He also urged SMEs to register their operations and pay taxes to Government so that they too benefit from contracts.
“You cannot design a company so that you avoid paying taxes. It is natural that you grow your company and support Government through payment of taxes.
“Indigenisation and economic empowerment won’t work if companies are not paying taxes because contracts are given to the known brands. So you don’t have to operate underground because you will not be known; we cannot be an underground economy,” said Mr Magaya.
Many SMEs avoid formalisation of operations to avoid paying statutory obligations that they view as onerous.
As a result, they are ineligible to access funds from banks.
The Rubiem Group was formed in 2008 and has become a leader in providing high-value consultancy and implementation services.
It operates in a number of African countries such as Zimbabwe, Mozambique, Zambia, South and Malawi.
In Zimbabwe, it has worked with TelOne, NetOne and is currently working with the Zimbabwe Broadcasting Corporation.
