‘African countries must cooperate to develop the continent’

CLOUDINE MATOLA

 

Professor Martha Namundjebo-Tilahun, the co-founder  and chairperson of the United  Africa Group, a privately owned  multi-million dollar  conglomerate in Namibia, has said African countries must  cooperate to develop the continent, Business Times can report.

Speaking  yesterday at the Africa Investment Leaders Forum held in the capital Harare, she said: “The African Continental Free Trade Area is the monumental step towards economic growth and economic integration. This is our mandate to attract the global investors by showcasing the opportunities within our borders.

“We must also remain vigilant and adaptive to government and relationships, ensuring that our policies and investments are sustainable and inclusive.”

She added: “Africa is a continent, rich in resources and has a mosaic of cultures, talents and opportunities. Our strength lies in our diversity.

“And our ability to cooperate across borders and industries.

In the current global landscape, Africa must position itself as the key player.”

In addition, Namundjebo-Tilahun stated that since businesses are what propel the economy, it is necessary to establish an atmosphere in which they may succeed. “We need to create an ecosystem where business can thrive and wealth can be redistributed. This is how we build a self-sustainable economy. I believe that creating an investment opportunity, particularly in sectors like real estate, finance and renewable energy are essential,” she said.

She added that there is a problem with financing access that needs to be fixed. “To overcome our challenges, we must address the issue of capital. Access to capital remains a significant barrier, especially for our youth. Innovative financial solutions such as microfinance, venture capital and crowdfunding can provide the necessary support for our young entrepreneurs.

“Government and private sectors must create and improve the financial system. Government and private sectors must create and improve the financial system,” Namundjebo-Tilahun said.

 

RBZ should act on commercial paper

T

he Reserve Bank of Zimbabwe (RBZ) should move quickly to convert all companies’ outstanding foreign currency auction system allotments into a two-year Zimbabwe Gold (ZiG) denominated instrument or commercial paper in order to prevent a potential decline in industry capacity and the closure of operations by some companies.

Companies have already begun to feel the adverse impact of the delay in converting the commercial paper with several businesses now on the brink  of bankruptcy.

Business leaders advised RBZ governor Dr John Mushayavanhu to convert the commercial paper to prevent some companies from  closing, throwing many workers onto the streets. The main issue is that businesses were not given their hard currency even after they were forced to surrender the Zimbabwe dollar equivalent to the central bank in advance. As a result, the irate businesses are now compelled to obtain the dollar from the alternative market, where the rates are exorbitant.

“We engaged the governor to make the (commercial) paper transferable to other companies but the central bank chief hasn’t gotten back to us.

“According to the feedback we are getting from our members, they haven’t even received the commercial paper yet. It’s now very difficult for them to do business,” Mike Kamungeremu, the Zimbabwe National Chamber of Commerce president, told Business Times this week.

He added: “The governor indicated that the companies will get the commercial paper which will mature in 24 months and it earns an interest of 7.5% per annum which means from the day the announcement was made, owed firms are already three months behind as far as the interest payments are concerned. We want to make sure that companies are not going to be prejudiced as they are owed the money despite the fact that the document has not come.”

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