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Business membership organisations in Zimbabwe have weakened in the wake of declining membership while they also have to deal with the emergence of new entrepreneurs with different values and ways of doing business.BMOs are often defined as non profit and democratically guided membership organisations that finance themselves by a mix of membership dues, service fees, and subsidies from Government or donors.
They include business associations, chambers of commerce, federation of business associations, employers’ clubs, private sector forums, among others.
While BMOs exist in almost every sector of the economy, a few are visible and credible in Zimbabwe.
Over the years Zimbabwe has seen the evolution of various BMOs among them the Indigenous Business Development Centre, the Zimbabwe National Chamber of Commerce, the Confederation of Zimbabwe Industries, Indigenous Business Women Organisation and the Chamber of Mines of Zimbabwe, among others.
Lobby groups such as the Affirmative Action Group have also been prominent.
While BMOs are expected to champion the promotion of growth, sustainability and prosperity for its members and stakeholders, to provide business support services and a representative voice for its members, studies have found out that most of the organisations are not well equipped to carry out their mandate.
A study carried out by the World Bank titled Building the Capacity of BMOs: Guiding Principles For Project Managers made a number of telling findings which apply to local BMOs.
The second edition of the study which was prepared by the World Bank Group (SME Department) in collaboration with the Foundation for Economic Development and Vocational Training (SEQUA) argued that while BMOs have competitive advantages in the facilitation or provision of certain business development services, most of them in developing countries only offer a limited range of low-level services because they lack the financial and human resources as well as the know-how needed to upgrade and diversify their service portfolio.
This undermines the impact of BMOs.
Former CZI president Callisto Jokonya concurred saying that while BMOs were a close link between Government and the private sector, shortage of resources is the key limiting factor in nearly all BMOs in Zimbabwe.
Mr Jokonya said BMOs have, to a larger extent, been instrumental in policy formulation in Zimbabwe as they have participated in the processes together with Government.
“There are differences (between Government and BMOs) but there is respect of each other because both need each other in formulating credible policies,” said Mr Jokonya.
“Before or after independence BMOs have continued with the key goal of helping in policy formulation for the benefit of our country at large.”
And yet, the World Bank study revealed that if well resourced, BMOs can actually influence informed policy making through research and evidence gathering, expertise in specific areas and help improve buy in for Government economic policies.
They can also help in capacitating MSMEs which is regarded “as an integrative part of every strategy for private sector promotion in developing countries because of their contribution to poverty alleviation and equitable growth”.
A 2012 Finscope survey revealed that employment under the MSME sector tops 5,7 million, making it a very important sector BMOs can adopt.
“The most important actors, which can influence the SMEs’ environment, are on the one hand government and public institutions, and on the other hand private business with BMOs in between.
“BMOs can promote SME growth through facilitation or direct provision of selected demand-driven services and through advocacy aimed at creating a better business environment. BMOs are in the position to play this “dual role” because of certain characteristics: they are intermediary, networking, and self-regulative bodies. This unique combination of strengths makes them an effective tool to increase the growth of firms in a given country,” the World Bank report said.
Apart from helping capacitate MSEMs, business membership organisations can partner Government and researchers in surveys and gathering evidence for informed policy making.
BMOs’ input could be useful in the national budget consultative process, Parliament, the National Economic Consultative Forum, the Tripartite Negotiating Forum and consultative meetings convened by BMOs themselves and Government.
The Zimbabwe Evidence Informed Policy Network Trust which seeks to bridge the research-policy divide by promoting evidence informed policy making in Zimbabwe through various interventions, believes that evidence, particularly research is an integral component in all the functions of BMOs.
“In order to perform an effective representative role, influence key policy decisions, create a favourable and level economic playfield BMOs need to be informed by the best available evidence ranging from research, expert advise, citizen knowledge, accurate data and statistics. It’s critical for BMOs to either have vibrant research units or strong links and networks with think-tanks, research organisations and the academia including civic society organisations who have a stake in business and economic development,” said ZeipNet director Ronald Munatsi.
Mr Munatsi said while BMOs exist for the public good they are not playing a “very active role in influencing policy and effectively supporting their membership” while some have been sucked up in political pollarisation.
“Zimbabwean BMOs also lack capacity to analyse current social dialogue dynamics and advocate for economic reforms, create employment and promote competitiveness in difficult economic reforms,” he said.
But the former CZI president Mr Jokonya felt that BMOs are playing a key role in policy formulation but Government, in the past has not been taking heed.
“The challenge was fiscal and monetary policy makers would religiously ask for advise but would do totally the opposite. This does undermine BMOs leadership. But regardless those short comings BMOs do not give up. You then are forced to lobby on patronage basis as opposed to clear logic and evidence based arguments,” said Mr Jokonya.
BMOs particularly the CZI were instrumental in the promulgation of Statutory Instrument 64 of 2016 which restricts the importation of locally available products. This has seen Zimbabwe reduce its import bill by $1 billion since its enactment.
Presenting a paper titled: “Mapping the business environment for dialogue in Zimbabwe” at a BMO services launch event – A free event to gain market intelligence and tools to make your BMO grow – in September 2014 organised by Zimbisa, Sekai Kuvarika said there seemed to be lack of collaboration between different levels of BMOs, for instance, national sector BMOs and sub-sector associations on one hand, and SME and big business groups on the other.
Furthermore, it has been observed that BMOs have a new phenomenon to deal with, and that is, the emergence of a new breed of entrepreneurs with different values and a new way of doing business.
In a paper titled: “A Market Assessment of Zimbabwean BMOs’ Services” at the Zimbisa meeting Probe Market Research’s Barbara Vitoria posited that; “the changed environment had serious implications for BMOs, such as declining membership (up to 80 percent in the last 10 years).
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