How viable and profitable is it to do business in Zimbabwe?
Doing business in Zimbabwe is a huge challenge across all sectors of the economy. Inflation is over 1,200 percent and rising while unemployment is in excess of 70 percent. Interest rates are punitive meaning that borrowing is certainly not a viable financing option. One of the biggest challenges that all businesses face in Zimbabwe is the shortage of skilled people. Most of Zimbabwe’s educated and skilled workforce has left the country in search of greener pastures.
How do you feel about the political and financial future of Zimbabwe?
Zimbabwe’s politics right now stinks and the disconcerting thing is that there does not appear to be anybody working for the resolution of our political problems which are having a debilitating impact on the whole society. The focus of the ruling Zanu PF elite appears to be on pillaging and getting rich quickly before things change, meaning that they have taken their eyes off the ball.
On the other hand the political opposition is hamstrung by their own incompetence and a repressive political regime. My fear is that where people are unable to ventilate their frustrations in a peaceful way as is the case in Zimbabwe then other unsavoury options present themselves as possibilities for the oppressed masses.
Do you see any change in the Zimbabwean government’s attitude toward press freedom following ongoing pressure from South Africa to reform?
A free press and a public free to express itself are considered a threat by the Zimbabwean government. The day the Zimbabwean government allows a vibrant free daily newspaper and privately owned radio and television stations will be the beginning of the end. As it is, many people are afraid to speak out and most opposition has been driven underground which explains the appearance of peace and calm.
Do you think business opportunities on the rest of the continent remain largely unexplored on the print media side? If so, why?
There are huge business opportunities for print media on the continent but these remain unexplored for a number of reasons. The main reason is that the political elite across the continent don’t see the media as a business proposition but as a threat to their political tenure. Thus the tendency is to restrict rather than aid the growth of the media on the continent. The constitutional and legal environment makes it difficult for investors to pursue media opportunities on the continent. Poor political leadership has also meant weak economies, underdeveloped advertising markets and a shortage of vital skills and technology.
You’ve recently branched into the magazine sector, will you be launching more magazines and newspapers in South Africa or elsewhere on the continent?
My vision is to create a Pan African Media house with profitable assets all across the continent. The building blocks towards the realisation of that vision are in place through my assets in Zimbabwe and South Africa. We are currently assessing other opportunities on the continent.
What advice would you give to South African companies interested in doing business outside our borders?
Each African country is different and needs to be clearly understood before venturing to make an investment. Apart from understanding the target market, it is important for prospective South African investors to seek credible local partners who understand the terrain as this could make a huge difference between success and failure. Africa resents the arrogance of South African companies and they will need to curb this to increase their chances of success. A perception that South Africans are the continent’s new colonial masters is likely to face political opposition and resistance on the ground. And far from being a dark continent, Africa has handsome returns for the astute South African investor.