The Sunday Mail
Darlington Musarurwa – Business Editor
BLACK Zimbabweans now rule over industry and commerce, they are masters of local enterprise.
Nowhere in Africa, or probably the world, has political freedom been so boldly pronounced as in Zimbabwe.
And this freedom has an economic translation.
This expression is not only urban, as represented by the new breed of suave, sleek and genteel business executives, including enterprising business tycoons; it is rural as well.
Where 3 500 white farmers used to own 12,1 million hectares of land, representing 31 percent of the country’s prime agricultural land, they have since been replaced by 276 620 indigenous households whose produce is now having a telling impact on both tobacco and horticultural production.
This has also had a material impact on local pursues.
More than 60 000 tobacco farmers – 25 610 communal farmers, 26 069 A1 new farmers, 3 372 new A2 farmers and 4 994 small-scale commercial farmers – are now hauling more than US$600 million in income and more than US$800 million in export earnings per year.
Formerly, this used to benefit an enclave of more than 1 500 white settler colonial farmers.
Economists consider land as a key factor of production and the primary source of wealth.
Crucially, the architecture of the local economy has remarkably shifted from foreign to local interests.
Where foreign companies such as Murray & Roberts used to hold sway, companies such as Masimba Holdings, owned and controlled by a consortium of local businessmen, have emerged in their stead.
Industrial magnate Mr Shingai Mutasa, who has interests in key industrial businesses, some of which are listed on the Zimbabwe Stock Exchange, has also made remarkable inroads in the real estate and property sector.
Before 1980, the Industrial Conciliation Act of 1934 excluded locals from apprentice training and also prevented them from taking skilled jobs in established building firms.
But this did not suffocate the informal sector, which mainly fed off labour-only jobs that big, white-owned companies were reluctant to take.
As a result, big international firms such as Costain and Sisk thrived.
The tentacles of the local businessmen has also spread to the hospitality industry, where Dr Shingi Munyeza used to be a shining beacon through his investment in African Sun, former Zimsun.
A new force in the form of Mr George Manyere, an investment banker and founder of Brainworks Capital, has also now emerged.
Worryingly, the new narrative that is being peddled in some quarters seems to imply that local entrepreneurs are inherently incapable of running successful business ventures, but with hindsight our own local history is replete with cases of local businessmen who succeeded in establishing formidable businesses that provided the inspiration for latter-day entrepreneurs.
In Harare, then Salisbury, there was Mr Aiden Mwamuka; Mr Denis Makomva, whose name has a familiar ring in the environs of Glen View; Mr Philemon Machipisa, who is iconic in Highfield; and Mr Paul Matambanadzo, whose business model in the bus transport business can actually compare with any modern day business model.
In Bulawayo, there were individuals such as Mr Zacharia Chigumira, Mr William Ngwenya, Mr Alfred Zwambila and Mr Nicholas Mabodoko, who really made a mark.
But it is the stories of Mr Mwamuka (retail), Mr Makomva (retail), Mr Machipisa (retail) and Mr Matambanadzo (transport), as recounted by Mr Volker Wild in his book “Profit not for profit’s sake: History & Business Culture of African Entrepreneurs in Zimbabwe” published in 1994 that show the raw and pure spirit of black entrepreneurship that was perfected after Independence.
Mr Aiden Mwamuka:Teacher turned tycoon
Mr Mwamuka, who was born in 1909 and was son of a missionary teacher, managed to attend primary school up to Standard 6.
He trained as a teacher at St Adam’s College in South Africa. After having returned to Zimbabwe around 1933, he first taught at Domboshawa Industrial School and then became a headmaster at one of the schools in Highfield.
It was in 1952, however, when he decided to trade the chalk for a fling with the business world, that Mr Mwamuka’s path was set.
After opening up his first shop, a small room measuring 3×6 metres, with stock valued at less than 200 pounds, he successfully launched his business empire.
A grocery shop complete with a snack bar was subsequently opened in Highfield. The authorities also gave him a licence to sell spirits.
A petrol station followed.
In 1962 he had the enterprise registered as a private company.
It is believed that by the end of the 1960s, Mwamuka owned eight shops. Seven others were in the process of completion. He only managed some of them, with the rest being rented out to other businessmen.
However, the responsibilities of running the businesses, which he solely shouldered, eventually took a toll on him.
Before his demise in 1972, Mr Mwamuka had become the chairman of the Southern Rhodesia Chamber of Commerce, an organisation of small black retailers and businessmen.
After his death Paul, his son, took over. Paul had studied business administration in London.
“He started services which you could get in town but not in Highfield. For instance, if you bought your bread in Highfield it was not wrapped up. He felt this was just not on. If your wanted to buy your mealie-meal, you went to the shop with a container and your mealie-meal was dished out from a bag. It was not even measured on scales or anything like that. He started pre-packing the mealie-meal in bags. He actually thought no black man had seriously gone into retailing. He also started house-to-house deliveries. He had two people doing deliveries on bicycles. And eventually he had an old car, a small Austin sedan, and later a van to do the deliveries. In a way, he was pioneering higher standards of service” – Paul Mwamuka (his son)
Denis Makomva: The mistrustful autocrat
Makomva, who was born in 1926 in Mutare (then Umtali district), was the son of a village headman. He attended primary school up to Standard 3. Some say he could just about write his name.
Having being trained as a bricklayer, the young Makomva trekked to Salisbury where he survived as a self-employed builder.
But in 1959 he opened his first shop in Highfield. As was the norm with businessmen of the time, in 1969 he added a petrol station.
He subsequently opened a supermarket in Highfield in 1978, followed by another one in Glen View in 1980.
In the mid-seventies Makomva joined the board of the Progress Trading Company, a wholesale firm that had both African and white shareholders.
A few expected him to succeed because of his minimal education.
However, it is opined that much of his success was mainly because of personal supervision, suspicion and taking drastic action against employees.
As a result, he managed to cut back on shrinkages and established an enduring business empire.
He put his three sons and a few other relatives in key positions.
For some strange reason, he did not employ female relatives.
Also he didn’t rely on advice, opting instead to trust his own business instinct.
His greatest undoing, however, was that he did not keep books.
Well, it is said he had a bookkeeper, but bookkeeping was only done to suit the taxman. He used to tell the book-keeper what he was prepared to pay as tax and the books would be prepared accordingly.
It is unsurprising that after Independence, Mr Makomva was slapped with a US$3 million tax bill.
“My father imposed control by his sheer authority so that his employees were scared to do anything against his rules. Anyone caught on the wrong side was fired straight away because he believed that if anyone got caught that person would have been doing that for a long time. . .
“My father was a strict man, he was somehow omnipresent, he would pitch up anytime. He would always want to be in his shops unless duty called. His aim was always to be on the spot especially as long as we had only one shop. Later he tried to frequent these other places and to make his presence felt regularly. He would randomly check and his employees would never know when he was coming next. You would not even see his car approaching. He would try to sneak in. The element of surprise was his biggest weapon.
“His workers were scared of him. He would deliberately make sure that no one was idle or just chatting . . .” – Morgan Makomva, his son.
After his death in 1986, his three sons – Morgan, Stanley and Rodwell – took over the business.
Philemon Machipisa: From peasant farming to tycoon
Many actually believe that Machipisa was Philemon’s real surname. Actually, his real name was Murambiwa. The word Machipisa was a trade name assumed from his grandfather who was a vegetable trader in Rusape.
The exact year that Machipisa was born is not known, but it is believed that he was born in the 1930s.
Initially, Philemon and his three brothers — Wilson, John and Rishon — joined forces and ventured into business. Their biggest influence was their mother who taught them work ethics.
In 1954 they set up their first shop as Machipisa Stores (Pvt) Limited in Highfield. Later they began to build their first supermarket in Highfield at a cost of 25 000 pounds, but this venture failed as they later filed for bankruptcy after failing to repay a bank loan.
Machipisa felt that he was being dragged by his brothers. It is alleged that his brother Wilson lived life on the fast lane and eventually committed suicide.
His younger brother John was also accused of living an extravagant life.
Philemon set out on a journey of his own by initially opening a small general store in Highfield. His strategy of low prices higher returns paid dividends.
In the 1960s, he also ventured into construction. His most notable project included the 100 000 pound project to build 11 one-family dwellings in Highfield, including the community centre.
In the mid-1960s, he also operated a bus service between Salisbury and Mutoko.
Mr Machipisa grew so rich that by the end of the 1970s he owned more than 20 houses.
He also bought himself a number of large farms totalling more than 20 000 hectares.
After Independence, Machipisa had become the managing director of seven companies: Machipisa Brothers, Machipisa Motors, Machipisa Stores, Machipisa Night Club, Machipisa Farming Estate, Machipisa Park Lane Hotel and Machipisa Property Holdings.
Paul Matambanadzo: The astute businessmen
The colonial authorities allowed black businessmen to invest in the transport sector, particularly in routes ferrying people to the reserves. However, the city, particularly the reserves, remained firmly in the hands of the colonial local authority.
Transporters like Paul Matambanadzo, who was born in 1936 in Chinamora, naturally rose.
His poor peasant family could not afford to educate him so he left school after Standard 3.
After working as a farmhand at the age of 13, Matambanadzo later found work as a cook in Salisbury.
1954 was particularly defining to him as he found work as a bus conductor at a bus company owned by Maziweyi.
It was his experiences at Maziweyi, where his brothers colluded to defraud him, that shaped his attitude towards his own venture.
He decided to quit his job and set his own business. His journey was not rosy. An Indian businessman who had promised to help him disappeared with his savings (2 500 pounds). He was later helped by a white businessman Mr Davidson, the owner of Simms Electrical, to set out on his own.
His business model spelt his success.
He spread his service to areas that were previously not serviced because of bad roads by undertaking to build bridges and repair them. As a result, he created a huge catchment area for his company.
His buses were faster and were on the road more hours a week. They also carried the greater number of passengers, his average loading rate was 75 percent capacity. He only bought new buses and would get rid of them after three years only. This significantly cut costs. Because of his astuteness, many competitors sold their route permits to him.
In 1967 he opened his first bus depot in Salisbury, followed by one in Bulawayo in 1968 and Chiredzi in 1972. By that time, he had 67 buses.
Also through his ingenuity, he was considered the sole African entrepreneur to make inroads in the exclusively white sector of goods transport.
Matambanadzo built up a fleet of 16 lorries and became the only African carrier to operate abroad in Malawi, Zambia, South Africa and Mozambique.
It is believed that in the 1970s, he had 21 buses in his Malawi enterprise alone.
Key highlights of his business
— He had an advisor and accountant: one Mr Elliot.
— His bookkeeper, Mr Peter Sotetse, was from Botswana
— He took on African school-leavers and his workers were well paid according to the precise number of hours worked, overtime, bonuses and deductions.
— Unlike Makomva, he never tried to browbeat his workers.
— He also outsourced knowledge from European experts
— Through the instructions from his lawyer, Mr Nezim Franco, he managed to establish one of the biggest detective agencies in the country, including his own inspectors.
Accounts of the businessmen are extracted from Mr Volker Wild’s book “Profit not for profit’s sake: History & Business Culture of African Entrepreneurs in Zimbabwe” published in 1994.
Next week we will publish Mr Philemon Machipisa’s interview conducted in 1991
