Economic recovery: The role of the entrepreneur

What an eventful week this has been. As a technology driven entity Tech Hub is constantly looking out for opportunities and innovative solutions to improve the way we do business in the country. We are keeping an eye on the developments in the economy, particularly the role that entrepreneurs can play in solving some of the challenges being faced by our economy particularly its citizens. We are delighted to observe that there is keen interest in our country both locally and internationally, despite the challenges being faced. A closer look at these developments shows renewed hope and interest in reviving the economy. If you care to look in the right places there are serious opportunities for everyone.

Taking the pain

Policy makers are clearly interested in seeing a quick recovery in the economy. However, the environment has not been forgiving. Uncertainty remains high and there is urgent need to rebuild confidence in the country’s institutions.

A cocktail of measures announced by the government last week was received with mixed feelings but one thing is clear, the country’s citizens will and must face the pain that will come from some of these measures. One particularly painful measure announced this week was the 2% transaction fee to be collected on selected transactions. Though it’s a transaction cost it is increasing the tax burden and cannot be ignored.

Positive spinoffs

The revenue collected from this transaction fee will bring into the government’s tax net the informal sector, assuming this sector is using formal payment channels.

It will also lead to higher circulation of notes and coins in the economy as citizens who had been clinging to their cash start to use it to avoid paying the 2% transaction costs, leading to a stronger RTGS dollar. Will this lead to a reversal of the use of electronic money in the economy?

This is highly unlikely in our view. It is our hope that government is treating this as a short term stabilisation measure and not a permanent revenue raising measure.

Consider the fact that previous revenue collections were directed towards funding recurrent consumption, something which is not sustainable.

Now focus on the positive impact that will accrue to citizens if the collected revenue is redirected to funding capital projects.

It is our hope that more money will be directed towards infrastructure development and that all long overdue projects will now be embarked on to produce even bigger revenue streams for the economy and reduce the tax burden on the citizens.

State unification

Is there political will? We believe there is and there are clear indications that the government is very much aware that the country needs to focus on rebuilding its infrastructure even though times are hard if we are to develop and attract investors as a nation.

It is also our view that the policies being pursued by the government, if sincere will result in a better economy that will result in even bigger opportunities for everyone. A unified nation is also important to realise quick gains in the economy.

App development democratized

As individuals in the economy we also have a big part to play in rebuilding our economy. On a personal level there are a few questions one must ask one’s self.

What am I doing to play my part in helping my country move forward? Browsing through social media over the weekend we found some interesting new groups such as “Finding Fuel”, where citizens from all over the country are bandying together to tell each other where to find fuel and which service stations have received what product, the nature of the queue and so on.

Quite interesting isn’t it how technology can be used to provide realtime information that can save people time and money.

We must go a step further and develop even more groups that focus on helping each other develop our economy. Some of these groups are already there but more needs to be done. For example, farming is a key sector that needs to be focused on to ensure maximum food production.

Not everyone in the groups is sincere though.

So one has to be careful what advice to take and what to ignore.

The Government too needs to create groups to consult widely with citizens on policy.

For instance, there was panic buying of fuel this past weekend and in some cases some people could be seen hoarding basic commodities, obviously worried about the repeat of the painful patch in 2008.

Is the hoarding necessary, probably not, but human nature says better buy and ensure you are covered than to be sorry!

Unlike 2008, where there was no Whatsapp, social media was just starting. Today these communication platforms are mainstream and first with the news.

Information is flowing freely and resulting in a lot of market efficiency. However, fake news has also taken over in some ugly cases of disinformation, leading to serious loss of resources.

Social media easing the pain

Overall we feel that social media is helping citizens face difficult situations better.

This presents great opportunities for entrepreneurs who are clever enough to leverage on technology to keep customers informed. Government too should make use of social media more to connect with citizens and consult them on policy measures.

It must also keep them informed in real-time on important matters. Everyone benefits in the end. Technology is now more accessible and is available to anyone who is smart enough to find the right tools to develop an application.

For example an app to help people find fuel can be launched in a day or less. This used to be unthinkable a few years ago. Only well trained programmers and computer science students could do this. These days anyone with interest, access to the internet and time on their hands can whip up an app.

Entrepreneurship Club

Many Zimbabwean individuals have designed and launched a number of apps on Google Play Store.

One thing is clear though, most of the apps we use are focused on local products and services. Very few apps are aimed at those outside the country’s borders.

There are many opportunities for app developers to focus on generating revenue from the international user base which can help the country generate much needed foreign currency.

It is not easy to get payment from outside and this is a major problem that needs to be addressed by monetary authorities without delay.

Tech Hub was established to enable entrepreneurs to get support for their early stage enterprises.

Our Entrepreneurship club hosts events and workshops designed to help entrepreneurs connect and network. You can join it today.

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