Tea with Business Economic Empowerment Forum (BEEF) President Solomon Matsa

Inductoserve C.E.O and transport mogul Mr Solomon Matsa has business operations spanning Zimbabwe and South Africa. From humble beginnings of operating one bakkie ferrying in transit lodgers' properties within the high density locations of Johannesburg, Mr. Matsa's business empire has grown to include hotels along Bulawayo- Harare road, supermarket chains, real estate, a haulage fleet of over 20 trucks and mining interests in Zimbabwe. He is a mechanical engineer by profession.

Great Zimbabwe Times Correspondent Lilian Muungani chats with B.E.E.F President Solomon Matsa on the investment terrain in Zimbabwe, among other issues.

Q:What interventions can the private sector make to ignite the revival of our local economy?

A:There are so many opportunities in our country which the private sector can take up. If we want our country to progress, we need to intervene with creation of small businesses, not too small but when I say small businesses I mean businesses by us for us – where we are saying for example in the coal industry, we need to have ten coal mines owned by our people.

Then we go to the steel industry, iron ore and say let's have ten iron ore mines and ten refineries which we give to our people. So, all the major things which we feel are urgently needed for our livelihood, we need to give an opportunity to our own Zimbabwean people who are able. We then create companies – not one company – but let's say ten for competitiveness and innovation, then we revive those sectors.

The same principle should apply with our roads- 20 to 30 companies can be given contracts to repair the roads. After you have been given this contract- if you get a contract which is I would say maybe USD10 million as a company, you are forced to start an industry of your choice in strategic consumer goods such as cooking oil.

But, the government or some commission from the private sector can follow up on the profit you make to ensure that this money is invested in strategic manufacturing sectors for products like soap, cooking oil and other consumer goods required by the domestic market. This is effectively directing those people given the big infrastructure contracts to move into production of strategic commodities using the profit they make.

If these contracts are given to foreign based companies, we are exporting forex because they will declare dividends through the financial institutions of their countries.

Q: The culture in Zimbabwe has been to divert such funds to non –productive projects with overnight returns? How do we go past that? If a person abuses these loan grants, they have to be arrested because we cannot give you an opportunity to revive the economy of the country and you mess it up.

The problem is that people are not accountable in Zimbabwe and there is no monitoring and control after people have been given projects. We can also do import substitution to ignite our economy. There are a lot of brains in Zimbabwe, I don't know why we are not allowing people to think out of the box. I have been to our import and export authorities requesting a list of all 20 major imports by Zimbabweans then we do research and innovation in those products so that we cut down on the use of forex but information has not been forthcoming. If information is made available we can then focus on cutti ng down imports.

The President has said Zimbabwe is open for business but in this aspect, we are struggling with people in positions of influence and power. I was very impressed however, by the Provincial Mining Director for Masvingo when we were at that session where he listed all the minerals in our province. He revealed information which was hidden from us by the whites. Now, with an inventory of our minerals, we can then invite Zimbabweans with capital especially from the diaspora to invest in those sectors.

But, another sad aspect is that it is not easy to start a business in Zimbabwe- you are thrown from Peter to Paul. And, our revenue collection authorities need to be professional and client-oriented in their approach to relationships with the private sector.

Q:But that is revenue collection – maybe it's not friendly business asking someone to hand over some of their profits? 

A: Lilian, in managing perceptions about Zimbabwe, we have to do away with a tag that presents us as a nation which is hostile to people with money.

It should not feel like a crime to have money. I feel that our revenue collection system does not favour people with money. How will we develop the country if our systems appear anti-people with money? How do we create more money – because people with money will hide it – they will go into hiding? It's important to approach revenue collection with engagement to listen to what business is saying and operate to serve not to punish.This things must be said, I cannot shy away.

 Q:If I may cut in ….The reforms you raise require some sort of plan and role allocation towards implementation – who should do what to get the ball rolling for the transformation we need to create a Zimbabwe that is friendly to business?

A: Point one: We have different gifts, I am not a doctor myself and I will not waste my time trying to cure people, I am not gifted in that space.

They are business people like myself ….and many other Zimbabweans who are in business. We need to be fair, and factual in identifying those who are business minded, we research their history to check for achievements …because if someone is fifty years old and they have failed to run a spazza- that person is not a businessman. Some people are just dealmakers because they are academically gifted and they are placed in the forefront of things at the expense of real entrepreneurial talent.

We also have others who are very gifted in business but are not given a chance to work for their country because of belonging to the opposition – every Zimbabwean should be given a chance to do what they can for their country regardless of political affiliation. If we harness those skills and give them the liberty to exercise their creativity to the highest level, it would not take two years to stabilize things in this country.

And, we must allow those who have made it to mentor others. Reviving our economy must not be a political issue, it must be purely business.

Q:You  touched on one factor that I think is critical in getting things to happen. You indicated that this must not be a political issue, it must be a business issue and it takes me to my next questions which is to do with Private –Public sector co-ordination for growth in Zimbabwe. We are in a new political dispensation as a nation and there appears to be so much excitement because of the departure from life as we knew it in the previous political administration. Do you think the current political space can accommodate the ideas and take us where we want to go?

A:Our leader ED Mnangagwa has openly said 'Zimbabwe is open for Zimbabwe and dialogue'. He is a leader I believe wants real business to take off.

He is a businessperson himself, and he knows that for the country to change, there is only one solution: we need to have business people because they will create the products needed by Zimbabweans, to create jobs, industries etc.…So the ball is in our court. The problem is that we keep on expecting the President to be the person who does the work behind the policies he creates instead of us running with what he has said to work and implement. If we are disagreeing, let's disagree openly and discuss to iron out issues.