[Interview] Denford Mutashu, Founder and President, Confederation of Zimbabwe Retailers, Zimbabwe
Denford Mutashu is Founder and President of The Confederation of Zimbabwe Retailers, Zimbabwe.
His interview with Africa Business Communities:
Would you please introduce CZR?
Confederation of Zimbabwe Retailers (CZR) is a membership based organization that seeks to provide the necessary and important lobbying with key stakeholders on critical matters of national economic importance. It was founded in the year 2009, registered as a deed of trust in November 2013. The trustees include Gift Juao, Mellissa Masasa and Daniel Mutashu.
In which industries does CZR operate and who are your clients?
The CZR is an umbrella body for the Retail Sector and clients are the shop owners cutting across the divide from grocery shops, clothing shops, uniform retailers, hardware retailers, saloons and barbershops, cellphone retailers, accessories shops, hair pieces shops, cosmetics shops etc
What did you do before starting CZR?
I worked for a local indigenous retail group called Foodworld Supermarkets for 17 years 7 months. It’s amazing I started off from the parcels counter, cleaner, shelf packer, receiving assistant, till operator, butchery blockman, bakery table hand, costing clerk , supervisor , buyer, Assistant Manager, Human Resources Manager, Chief Security officer, Branch Manager to General Manager. During this time I became the voice of the retail sector in the local media - Zimbabwe Broadcasting Corporation (ZTV), radio stations and print media. I articulated the retail issues as well as providing updates on pricing and products availability.
What other companies/organizations/activities have you founded?
I run three small retail shops that sell groceries and hair pieces based in Harare. I have two takeaways and a saloon. I am also a FIFA player’s manager representing high profile soccer players in the country and have facilitated many contracts for them. I have since founded SC11 Soccer Academy with Irish Coach Sean Conner, for whom I was country manager when he managed a local football club, Caps United, in 2012.
What can be done by entrepreneurs and government to stimulate the business environment in Zimbabwe?
The Zimbabwean entrepreneurs enjoy tax breaks that cover businesses below a threshold of US$250,000/year. It is unfortunate some businesses continue to misrepresent to the government their size so that they remain under that same bracket. On the other hand, the government’s tax regime is punitive as V.A.T is pegged at 15% and this is not sustainable to a young economy like ours.
There is also need to come up with policies that stimulate demand which has been contracting for the past two years. Cost of borrowing with local institutions has crippled many businesses as the cost of money is steep. Government should continue to engage international financiers to work on a strategic plan to clear its debt while unlocking fresh capital to stimulate the economy. Industry revival is also key and Foreign Direct Investment (FDI’s) has been on a positive trajectory with renewed interest to invest in the country currently shown. Capacity utilization and industry competitiveness is critical to arrest ballooning import bill while increasing exports and export earnings. The government should continue to work on the cost of doing business in Zimbabwe.
Informal businesses should also change their attitude and start paying taxes to increase revenue inflow to the fiscus. Government could further review the tax regime. Interest rates should also be lowered. Inflation is at an all-time low and the economy is showing serious signs of consistent deflation which the Reserve Bank of Zimbabwe has categorized as dis-inflation. Infrastructure development and investment in information technology is integral. Development should be decentralized and cater for rural areas, growth points, small towns and cities.
It is also critical that investment in research and development be prioritized by both government and business.
Do you think women entrepreneurs typically have a harder time accessing loans through traditional bank channels?
There is a growing perception in most African societies that women entrepreneurs are not as productive as their male counterparts. I believe this is archaic and belongs in the colonial cemeteries. It’s a fact women constitute the biggest percentage of the African population followed by the youth. In Zimbabwe for example, women constitute about 55% of the population. Yet it is not easy for women to access loans. Any serious government or financial institution should target this growing population of women and take advantage by deliberately financing their projects. Women have shown their pedigree through success stories like Nkosazana Dhlamini Zuma (AU), Ellen Sirlief Johnson (Liberia) and many others who hold influential positions in the corporate and body politic.
Easy loans access is crucial to any successful economy. Banks should accommodate women and give them preference. It is encouraging that in Zimbabwe the government has actually allocated a Ministry that helps promote women development, Ministry of Women Affairs, Gender and Community Development. This helps to demystify the old perceptions.
What can you say about the targets, plans and ambitions of CZR for the rest of 2015?
Our targets for 2015 are not only exciting but achievable. Some of them include setting up administrative offices running affairs of the CZR in each of the country’s ten provinces. There is rigorous mobilization to register new members that has gathered serious momentum. To support such initiatives, I have engaged a consultancy company called Ribal Consultancy to partake in the mobilization exercise on behalf of the CZR. The figure of 1000 retailers by December 2015 is indeed achievable.
Do you believe Social Media and the Internet to be a plus to the business environment, as it applies to your industry?
Social Media and the internet have improved the business environment in many ways. The introduction, availability, affordability and accessibility of cellphones, computer software and hardware have made information flow and exchange easier. By a click of a button, you can interact with suppliers, customers and manufactures almost instantly. The investment in ICT is critical for any business that strives to grow and increase market share. The CZR uses various social platforms like Facebook, LinkedIn and twitter.
Africa Business Communities is conducting a series of interviews with CEOs and high-end professionals in Africa. Are you interested in an interview? Please send an e-mail to Andrea Ayemoba: andrea@africabusinesscommunities.com