The Sunday Mail
Taurai Changwa Business Forum —
AS we begin the new year, it is very important for us to reflect on how we fared in 2016. Granted, the cash crisis – characterised by long bank queues and the introduction of bank notes – was the major highlight in the past year.
The economy continued to show a lot of stress as liquidations and judicial management also continued unrestrained.
Perhaps one of Government’s major interventions that has had far-reaching implications has been the promulgation of Statutory Instrument 64 of 2016 which has had the effect of limiting the amount of imports, particularly those that can ordinarily be produced by local companies.
Observably, there has been some signs of recovery. Companies such as Cairns, which have arguably benefitted the most, are ramping up production, with the re-introduction of product lines that were discontinued at the height of the country’s economic challenges.
By giving fillip to local manufacturing companies, there is now hope that the country has the potential to successfully re-industrialise.
As we strategise for 2017, we need to honestly reflect on some of our strengths and weaknesses in order to come up with a better strategy for the opportunies and challenges ahead.
Admittedly, some decisions that were made in the past year were good and some were horrible for business, and all this needs to be taken into perspective.
So, now is the right time to look back and reflect on what we have done right, to learn what we need to do going forward.
Reflection helps us to learn from our mistakes. If we don’t learn from our mistakes, we are almost fated to repeat them.
And that’s not very smart. However, if we reflect on those mistakes, figure out what went wrong, see how we can prevent them in the future, we can use our mistakes to get better.
Mistakes, then, are a valuable learning tool, instead of something to feel embarrassed or upset about. Reflection is an important way to do that.
In 2017, we need to behave differently. Part of the strategy to devising a new way to succeed is to make a behavoural analysis, especially to establish patterns of how much we earn, how we spend and how we can improve.
Great ideas can come by simply analysing financial statements. You can also get excellent ideas on how to improve your business.
Simple questions one can ask oneself are: How can I increase my revenues in 2017? How should I minimise my costs and maximise on profits?
How can I adapt and operate better in the current environment?
How can I be better than my competitors? What is the future of the entity?
These are some of the few questions one can ask since they reflect on how they can be better in 2017. Some decisions are by nature very tough and unfavourable to others but they will have to be made.
The introduction of bond notes and SI 64 were met with stiff and at times militant resistance, but they might turn out to be a boon for the country after all.
Far from the projections that were being made by anti-bond note acitivists, the bond note is still trading at 1:1 against the United States dollar.
At least credit must be given when due. But we haven’t walked the hard miles yet. There has to be increased production in both agriculture and manufacturing.
If there has to be a sustainable economic recovery path, at least we need to get the basics right. Without a doubt, the power supply situation in Zimbabwe has greatly improved. It seems load shedding is becoming a thing of the past.
The Zimbabwe Electricity Supply Authority has done very well and the expansion of Kariba South power station, which is well underway, can only give us hope that the future will be bright, literally.
All these are positives. But as has been revealed over the years, we cannot afford to relax. In fact, we need to redouble our efforts because there is still more ground to cover.
Also, a lot of factors continue to work against the progress that we are trying to make. Cash shortages, corruption and weak economic fundamentals continue to be some sore sticking points that need immediate correction.
The Reserve Bank of Zimbabwe should continue to work towards an environment where it is optional to use cash, and where that cash is needed, it is easily available.
This is precisely the reason why those in rural areas have been affected the most by cash shortages as the use of plastic money is still inconvenient in these areas.
Government should also continue to work on making life easy for Zimbabweans, especially the elderly. It is sad seeing the elderly sleeping in long queues just to get cash.
Honestly, at least there has to be social safety nets for the vulnerable groups in our society. We need to take a minute to step back and reflect on these challenges, now is the time to scheme on the 2017 plan of action.
It is a truism that if we do not plan, we plan to fail. Let’s take heed. Wishing you a prosperous 2017.
Taurai Changwa is a member of the Institute of Chartered Accountants of Zimbabwe and an estate administrator. He has vast experience on tax, accounting, audit and corporate governance issues. He is the managing director of SAFIC Consultants. He writes in his personal capacity and can be contacted at [email protected] or whatsapp on 0772374784.
