INVESTMENT expert Lionel Marumahoko says local businesses should take advantage of the African Continental Free Trade Area (AfCFTA) to explore business opportunities across the continent.
AfCFTA is the world’s largest free trade area, bringing together 55 countries of the African Union and eight regional economic communities.
Established in 2018 and operationalised in January 2021, AfCFTA creates a market of 1,3 billion people and a combined gross domestic product of US$3,4 trillion.
“Africa is presenting phenomenal opportunities for businesses across the continent, especially with this single market that is now playing out. The AfCFTA presents huge opportunities for local businesses.
Investment expert Lionel Marumahoko
“I see a lot of good businesses in Zimbabwe, and great entrepreneurs and we are not short of that but the whole concept is how we make these good businesses great businesses.
“How do we move them from being in a national play by embracing some of those trading blocs?” Marumahoko said at an executive dialogue breakfast meeting hosted by the country’s leading business publication, The Financial Gazette, last week.
“How does a Zimbabwean business become a pan-African business?
“Zimbabwe has exceptional know-how and the ability to develop credible products and we have an exceptional entrepreneurial spirit in our DNA.”
Marumahoko further highlighted that small businesses can benefit from the gap in the market as most businesses in Africa do not have a regional footprint.
“We are encouraging businesses to embrace the notion of being regional players for those who are interested in it. We are talking about growth and expanding as well as growing the portfolio,” he said.
“There is a need for market research and building robust structures to be able to compete and win on the regional market. I think we can learn from New Zealand, which is a tiny country that is exporting a lot to other countries.”
He encouraged small businesses to move from the founder’s trap and build their enterprises to withstand the test of time.
“You need to understand where you are as a family business, understand your aspirations. As a family business, as you start to grow, you now need to embrace some of the systems and processes that allow you to become a fully-fledged entrepreneur,” Marumahoko added.
He said culture is also another major stumbling block that is hindering many companies wanting to expand their footprint into Africa, citing that it often dictates the way these businesses look at the market, segment it, determine its size and also how that brand approaches the market.
“Culture informs how these businesses use information to help their decision-making. It also influences how brands work with local teams and forge relationships with customers in sub-Saharan Africa.
“Let’s face it, a company’s decisions are only as good as the quality, depth and breadth of knowledge it has,” Marumahoko said.
The Fingaz Executive Dialogue is a thought leadership interface that helps drive transformational change among top company executives and business leaders who are responsible for making strategic decisions that create value for their shareholders and customers alike, and that impact the growth trajectory of their organisations.
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