adminMorris Mpala MoB Capital (Pvt) Limited
If there was a time to cut prices across, it is now. We are at a stage where there is need to realign costs to productivity. It’s the time to facilitate cost realignments across the board from private to public sector. Zimbabwe is an independent economic entity therefore salaries and costs have to look at what is on the ground not what the region is offering because it does not make sense to compare. Let’s look at our own scenario and make economic sense from all this.
We are a unique entity with its own cost structure with its own value chains unique to us so evaluation has to be Zimbabwe based. Zimbabwe cannot afford to benchmark its cost structure on regional averages. It simply cannot afford that at the moment. There is need to come up with a new structure that suits Zimbabwe and its respective profit and loss account.
This anomaly where salaries are not at regional levels but other costs are at regional levels is just a recipe for disaster. Fair costs structures from salaries and all expenses to utilities and right staff complement has to be implemented now before it’s too late .
Yes it’s a painful remedy coming from the burning days but normally painful medicine heals fast. Let’s forgo our yesteryear mentality of profiteering and kiyakiyaring to that of patience and gradual growth based on underlying productivity .
We can’t as a nation sustain the prevailing cost structures. Individuals can’t, business can’t and government can’t. We just need to get back to basic of fair cost structures and we will have to revisit as we increase our productivity. And this includes infrastructural developments.
We simply can’t afford and urgent remedy is required. The time is now.
Let’s bite the bullet and collectively work towards rationalising our cost structure.
Cutting salaries only is not the solution.
One cellular company managed to convince their suppliers, customers and employees to rationalise the cost structure by 20-30 percent and it has paid off.
Let’s agree to a 25 percent across the board
The government has to rationalise its workforce by 40 percent, its operations by 25 percent, its requirements by 25 percent. One-stop shop concept should be implemented now. No need for procrastination.
Let those that owe start to settle their financial obligations to their indebted parties.
In other instances the government will have to charge fair prices and not give services for free. Free is not free at all.
Land prices reduction by 40 percent it’s only a piece of land there is development needed after purchase. Land is our birthright.
Interest rates must go down with immediate effect as per recommendations by RBZ governor. Bank charges must be reduced to manageable levels. RBZ has to lead by example and also curtail some of its charges.
Revalue all financial obligations. Refinancing at new rates to longer debt re-engineering
Let those in arrears start servicing their obligations.
I think this drive is better done if banks lead the way.
Medical aid/Insurance/Assurance/Tuition/Bank charges/Compliance/communication/rentals/legal fees let them assume a fair pricing regime so that we capture the entire population and thus economies of scale will lower the costs.
Zero tolerance on imports of goods that are locally produced.
Let’s do away with freebies and the mentality of entitlement, it’s costly and not in our best interest.
The recommendations on Zesa institution have been exhausted. Let’s settle our bills as well and let Zesa audit inefficiencies in their systems as well as their consumers.
Local government: utilities pricing is weighing down everyone. Fair pricing encourages settling of bills. We both need each other. Let’s pre-pay some of our critical services since we are doing the same with other service providers.
Zimra taxes, duties, levies: relook a the taxing regime which by our own standards is taxing each other to the marrow. Confrontation won’t work at all. Income tax should be reduced by 40 percent to encourage compliance. Idea is cast net wide to include informal sector not to overcrowd already complying entities.
All imports that are allowed then have to be increased by at least 25 percent to level playing field.
Licences/compliances/registrations we can afford to go 40 percent reduction. We mustn’t say we can’t, we need to say how can we do it together.
Let’s learn how banks manoeuvred from dollarisation.
Strive to reduce infrastructural development projects costs by at least 25 percent but increase projects by 25 percent all over the districts.
Transport: We expect a relook at transport costs taking into consideration viability and investments that is required
Retail prices: Let’s have more promotions and locally produced goods.
Fuel: Due to blending this has to be at reasonable prices. We have the sugar plantations, cassava plantations we can afford to reduce price of fuel. Surely it boggles the mind as to the correct pricing of this precious commodity that has to track international trends.
Let’s also target growth in FDIs.
25 percent growth in population (we need a market)
25 percent maximum land utilisation
25 percent increase in title deeds ownership in urban centres
25 percent preserving our environment, reduction in power consumption, reduction in water use, alternative power use
25 percent increase in non GMO intake
25 percent off social platforms as these are non productive
25 percent in use of alternative funding
25 percent increase in export and export incentives
25 percent increase in women business leadership due to their empathic transformational abilities
25 percent increase in physical exercise up take
Let’s cut 25 percent of the talking and increase doing by 25 percent.
Why 25 percent? It’s the beginning and its attainable.
It has to be approached from a scholarly scientific manner that looks at the holistic solution approach than piecemeal solutions. Speed is of paramount importance coupled with unprecedented unwavering commitment with one purpose, one goal and Ubuntu.
IF YOU LIVE IN BYO PLEASE CONSERVE WATER
IF YOU LIVE IN ZIMBABWE PLEASE USE ELECTRICITY SPARINGLY: SOS (SWITCH OFF SWITCHES)
IF YOU LIVE ON PLANET EARTH PLEASE PRESERVE THE ENVIRONMENT
Morris Mpala is managing director of MoB Capital (Pvt) Limited, a microfinance institution offering loans, micro-insurance and advisory services to small to medium enterprises as well as individuals.
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